Abstract
1- Introduction
2- Literature review and development of hypotheses
3- Research Method
4- Data Analysis and Results
5- Discussion and Conclusion
Appendices
References
Abstract
Purpose - The purpose of this paper is to examine how the various supplier selections construct impacts on firm’s operational competitive capability as well as an overall performance from a developing country’s environment. Design/methodology/approach – Structural equation modeling (SEM) was used to study the relationship between supplier selection criteria, competitive operational capabilities and overall organizational performance using survey of informants. Findings – In this work, we demonstrate that an effective supplier selection will lead to an enhanced competitive capability of the buying firm. Specifically, we show that selecting suppliers based on quality will lead to an improved quality of the buying firm, service will lead to improved delivery time and supplier strategic fit will lead to reduced cost, improved delivery time and improved flexibility of the buying firm. Furthermore, the buying firm competitive operational capabilities in terms of improved delivery time will lead overall performance from the Ghanaian business environment. The results indicates no significant different between the manufacturing and service sectors Research limitations/implications – The results indicate the relevance and the implications of the various supplier selection criteria from a developing country’s environment such as Ghana. Practical implications – The research shows how supplier selection criteria should be structured to enhance operational competitive capabilities and overall performance of the buying firm. Originality/value – The work illustrates and provides some insights and build on the literature in the area of supply selection strategies from a developing country’s environment
Introduction
The dynamism of the business environment is putting firms under pressure to improve quality, delivery performance, and responsiveness while simultaneously reducing costs. In response, firms are increasingly exploring ways to leverage their supply chains, and in particular to systematically evaluate the role of suppliers in their activities (Kannan and Tan 2006). It is important for managers to realize the long-term impact of their sourcing strategies on the profits and the efficient functioning of the organization. At the operational level, buyers have the ability to benefit from developing close relationships with key suppliers in the form of improved quality, delivery, reduced cost, or some combination thereof. At a strategic level, a close relationship with key suppliers is expected to lead to sustainable improvements in product quality and innovation, enhanced competitiveness, and increased market share. It is however expected that all these relationships should, in turn, be reflected by improvements in financial performance (Kannan and Tan 2006).