Strategies for Buyer Supplier Relationship Improvement: Scale Development and Validation

Abstract

It is not possible for an Own Equipment Manufacturer to manufacture all components in house, due to which need of out sourcing of some components/process to supplier base occurs. For being competitive in market supplier base of buyer should be self-efficient and developed one. This development of supplier can be achieved by implementing different supplier development practices as per the requirement. Now days along with supplier development, relationship improvement between buyer and supplier plays a vital role for taking competitive advantages. In this article a frame work of achieving buyer supplier relationship improvement through development of a supplier is discussed and scale required for measuring all construct is being validated. To examine the impact of buyer supplier relationship improvement through supplier development practices and buyer supplier relationship practices, a survey was conducted for manufacturing companies mainly including Auto Ancillaries, Engine Manufactures, Generator Manufactures and Machine Tool Manufactures. Researcher approached 628 respondents, out of which 536 respondents showed interest to response, data from 512 respondents were used as 24 respondents filled information incompletely. Reliability Analysis, Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) are applied for reliability and validity of scale with use of SPSS and AMOS software. The multi-item scale shows strong evidence of reliability and validity.