Effect of Uncertainty, Supplier Involvement, Supplier Performance and Partnership Quality on Buyer-Supplier Relationship

Abstract

The research is undertaken to evaluate the aspects of Uncertainty, Earlier Supplier Involvement, Supplier Performance and Partnership quality on Buyer dependence on the Supplier. In this explanatory research, a model is developed to validate the premise that by drafting value creating supplier relationship in order to help and implement strategies in supply chain management in manufacturing and non-manufacturing companies which will increase the buyer’s dependency of the suppliers. The study used data from atleast 228 procurement personnel from various industries. The results show that early supplier involvement, partnership quality, supplier performance have a significant and positive impact on buyer’s dependence. Whereas, uncertainty has also a positive but insignificant relationship with buyer dependence. To increase buyer dependency suppliers should be involved in early stage of the design and production of the product. Partnership quality and supplier performance also have significant impact on buyer dependence so management should consider the factors.

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