Supplier Management and Performance of SMES In Pakistan

Abstract

This study is focused mainly on identifying the relationship between supplier management and performance of SMEs IN Pakistan. This study has considered supplier assessment, strategic long-term relationship with supplier, logistics integration, and supplier lead time reduction as independent variables. Whereas, firm performance has been considered as the dependent variable in this study. However, this study has finalized SMEs in twin cities of Pakistan to testify the relationship between variables mentioned above. The major emphasis in this study has been on assessing the relationship between supplier assessment, strategic long-term relationship with supplier, logistics integration, and supplier lead time reduction, representing supplier management (independent variables) and firm performance (dependent variable) in SMEs of twin cities Pakistan. To prove this relationship, a survey has been conducted through an adopted structured questionnaire regarding this literature, in which members associated with supply chains functioning within SMEs of twin cities in Pakistan, have been requested to share their experiences by filling the questionnaires. Then, to identify the results on data gathered from the respondents, statistical instruments have been used. Some of the statistical instruments used in this study includes descriptive frequencies, reliability, correlation, regression, etc. Results derived through statistical instruments have shown that there exists a significant positive relationship between supplier assessment, strategic long-term relationship with supplier, logistics integration, and supplier lead time reduction(independent variables) and firm performance (dependent variable) in SMEs of twin cities in Pakistan. Conclusively, it can be said that supplier management positively impacts firm performance of SMEs of twin cities in Pakistan.