Impact of Supplier Development Program on Performance of Manufacturing Firms

Abstract

This study aims to assess the impact of supplier development program on firm performance of manufacturing firms in Pakistan. This study has used supplier identification, supplier relationship development and supplier management (representing supplier development program) as independent variables and firm performance as dependent variable. Meanwhile, manufacturing industry of Pakistan is the sector finalized for assessing the relationship between supplier development program and firm performance. To investigate the relationship, quantitative research method is used. Primary data is collected with the help of adopted structured questionnaire based on 5 Likert scale (1=Strongly Disagree and 5=Strongly Agree). Questionnaires were distributed amongst the employees associated with manufacturing firms of Pakistan and 300 responses were gathered from the respondents through convenience sampling technique. Data collected from the respondents were analyzed with the help of various statistical tests (such as reliability, descriptive frequencies and statistics, correlation and regression analysis) through SPSS Software (SPSS 21). Based on the findings, supplier development program (supplier identification, supplier relationship development and supplier management) positively impacts firm performance in manufacturing industry of Pakistan. Conclusively, findings of this study prove that increase in supplier development program (supplier identification, supplier relationship development and supplier management) bring a definite increase in firm performance of manufacturing firms in Pakistan.