DRIVERS OF BUYER-SUPPLIER RELATIONSHIP AND ITS EFFECT ON FINANCIAL PERFORMANCE OF ORGANIZATION: A CASE OF AUTOMOTIVE INDUSTRY OF PAKISTAN

Abstract

Purpose: The main objective ofthis research is to analyze and examine the drivers of buyer supplier relationship and their effect on the financial performance ofthe automotive industry in Pakistan. Methodology & Design: The quantitative approach has been used for data collection from the supply chain professionals of automotive industry of Pakistan. The sample size has been based on 315 responses that is analyzed using PLS-SEM through Smart PLS version 3.2.9. Findings: The results have showed that BP integration has a positive and significant effect on buyer-supplier relationship. The buyer-supplier relationship has a positive and significant effect on financial performance. The DSS integration has a positive and significant effect on buyer-supplier relationship. The IS integration has a positive and significant effect on buyer supplier relationship. The strategic purchasing has a positive but insignificant effect on buyer-supplier relationship. Limitations: The first issue in this study is that it only collected data from a limited sample size. The data was obtained entirely in Karachi. Results from a single city would not sufficient because the research issue needs a complete analysis. Recommendations: For building a long-term supply chain, a buyer-supplier connection is quite beneficial. When forming a partnership, companies should keep this in mind. It is necessary to maintain an appropriate balance between the rewards, opportunities, costs, and sustainable criteria should be done before building a risks. Selecting a supplier based on relationship.