What is it about?
The study reports and contrasts manufacturer-supplier relationships, supplier selection, and procurement performance of two manufacturing sectors in Kuwait. The causal effect of supplier relationship and selection on the performance of the procurement function was also investigated.
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Why is it important?
Despite the significance of the Gulf States and the growing importance of the manufacturing sector in these countries, relatively little is known about how buyers and suppliers within this sector interact. This study is the first to document supplier relationships and selection processes in this area of the world. The study also provides a reliable and valid scale for measuring the performance of the procurement function in the Kuwaiti manufacturing sector. Furthermore, the postulated impact of supplier/buyer relationships on the performance of the procurement functions was investigated in a newly emerging economy in the Gulf.
Perspectives
Findings indicate a significant causal effect of supplier relationship and supplier selection on a plant’s procurement performance. However, variance in plant size and/or industrial sector was found to not affect this relationship.
Professor M. Tawfik Mady
Kuwait University
Read the Original
This page is a summary of: Procurement performance and manufacturer-supplier relationships: a multivariate analysis in Kuwaiti manufacturing companies, Journal of Business and Industrial Marketing, May 2014, Emerald,
DOI: 10.1108/jbim-01-2012-0005.
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