The Impact of Trading Partner Trust and Power on the Business Performance

Abstract

The purpose of this study is to examine the role of Trading Partner’s Dynamics on Business Performance within a Supply Chain Network. Research is focused at the Textile Sector of Pakistan. As most of the textile sector is based and located in Faisalabad, therefore, the data is collected from the Textile Sector of Faisalabad, Pakistan. Sampling technique used in the existing study is stratified sampling and sample size is kept to 180 respondents. The data is collected using a close-ended questionnaire, whereas, the research instrument is adopted from already published research work. Various statistical analysis is applied, such as, descriptive, regression and correlation with the help of SPSS software. However, mediation analysis is also performed for determining the role of Supply Chain Integration in playing a part between Trading Partner Dynamics and Business Performance. Trading Partner Dynamics is examined using two dimensions as Trading Partner Power and Trading Partner Trust. The findings indicate that the variables have significant relationships with one another. Trading Partner Power is influential in Supply Chain Integration but lacks a major influence towards Business Performance. Existing study is extremely useful for the body of knowledge and local literature. Nevertheless, the study still has few limitations to be addressed in the future research work.