Validation of key success factor in supplier development in automotive industry of Pakistan: an empirical study

Abstract

Purpose: Purpose of the study is to find the validation of key success factors in supplier development in automotive industry of Pakistan from supplier prospective Design/methodology/approach: positivist approach is used for data collection. Research methodology is quantitative and cross sectional study is used. Data is collected through questionnaire. Data collected and analyzed from 107 professional working in automotive parts manufacturing industry in Pakistan. A mix of convenience and simple random sampling technique was used for data collection. Regression analysis was conducted to check the significance of the variables and model Findings: Our finding is based on three independent and one dependent variable. There is significant positive relationship between key success factors for supplier development and supplier performance. Supplier development activities and supplier buyer communications have positive impact on supplier performance. Due to political and economical risk buyer approach towards supplier organization has no significant impact on supplier performance. Practical Implications: This study is useful for the cars manufacturer and their supplier in automotive industry of Pakistan. This study is helpful for both buyer and supplier in understanding their efforts for supplier improvement which in turns affect the performance of the buyer. The research is also helpful for academic practitioners. Originality/Value: This study was not done before in automotive industry of Pakistan. This is the first comprehensive study on supplier development in automotive industry of Pakistan from supplier prospective. It is believed that this study adds value to literature on supplier development program in developing country.