Supplier Selection Criteria in the Context of City Government: Evidence from Renowned Organizations of Karachi City

Abstract

Supplier selection is one of the most important elements of the procurement process which has the ability to influence the performance of the entire supply chain management. Thus, it is considered as one of the major factors in the supply chain strategy in multinational organizations. Contrarily, least attention is given to the subject by the companies originated in Pakistan. Lack of research in this domain is also impairing this issue. Regardless of the importance of the supplier selection subject, the state-owned companies in Pakistan, are specifically, paying least concern towards it. Thus, the purpose of this study is to identify the importance of different factors of supplier selection, by the state-owned enterprises working under the city government of Karachi. In order to simplify the model, researchers predominantly focused on the generic criteria for supplier selection and further included some other variables like HSSE/ ISO policies and flexible contract terms to the research model. Moreover, moderation has also been used in order to replicate the model effectively with the scenario of Karachi. After adoption of the generic model of supplier selection, Hayes model has been used for the analysis of data. The study findings reveal that the organization working under the City Government of Karachi have different criteria and preferences for supplier selection. Hence the research is pervasive in nature and can be adopted by policy makers and technocrats in order to improve the supplier selection process of state-owned enterprises.