IMPACT OF SUPPLIER SELECTION CRITERIA ON FIRM PERFORMANCE: AN EMPIRICAL STUDY ON THE FOOD INDUSTRY IN KARACHI

Abstract

Purpose: To examine and explore crucial factors that define supply chain criteria and to study how these factors effect firm’s performance. The aim of this empirical study is to understand what factors are crucial to the supplier selection and whether they impact firm’s performance. Methodology: A survey method was adopted to conduct this study and gather relevant data. A web based questionnaire was created to gather data from food manufacturer that are a part of the food industry in Karachi. A sample size of 218 was selected as respondents and the convenience sampling technique was applied. This was done to analyze frequencies correlation and regression. This study has used a quantitative approach to gather data from concerned manufacturers. Findings: The purpose of the study was to explore the concept of supply chain criteria and its impact on firm’s performance which in turn helps to improve it. A major finding of this study is that there is a relation between supplier selection criteria and firm’s performance. Findings for the study show that factors other than cost are also important while selecting a supplier and they also have an impact on the performance of the firm. Practical implications: The outcome of this research is to point out the factors for supplier selection and their impact on firm performance. This study has multiple implications for food manufacturers. Manufacturers can use these determinants to access their firm’s performance. The primary aim of this research was to determine the determinants of supplier selection and whether they impact firm’s performance.