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Supplier development for competitive advantage in manufacturing small medium enterprises

Competitive advantage is crucial for a business to be sustainable, yet many small- and medium-sized enterprises are not engaging in supplier development in order to achieve a competitive advantage. This empirical study was conducted on a sample of 64 small- and medium-sized enterprises in the manufacturing industry in Kempton Park, Gauteng. The factors that influence engagement in supplier development were analysed to assess whether supplier development can lead to competitive advantage and other benefits. The findings indicate that supplier development can create and improve competitive advantage, as well as lead to other benefits. Four factors were found to have a relationship with supplier development, and therefore could influence the decision to take part in supplier development. Small- and medium-sized enterprises can use tools such as supplier development in order to be competitive and have an advantage over their competitors. The awareness of operational performance measures, competitive advantage, judgment of the absence or existence of trust, and a buyer’s relative power can all influence participation in supplier development.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:28576
Date January 2017
CreatorsMakumbila, Louis Boy
PublisherNelson Mandela Metropolitan University, Faculty of Business and Economic Sciences
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MBA
Formatx, 107 leaves, pdf
RightsNelson Mandela Metropolitan University

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