IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 3 NO. 2 2017

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Influence of Supplier Development on Organization Performance: An Empirical Investigation of Manufacturing Sector in Oyo State, Nigeria

Adedokun, Femi. B, Onikola, Yemisi. S and Oke, Joseph. A

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Abstract

The significant role of supplier development in promoting the operational performance of manufacturing firms has been acknowledged by scholars and researchers. However, the contributions of supplier development have not been felt in Nigerian manufacturing firms. This study therefore examines that influence of supplier development on organization performance with specific reference to manufacturing firms in Ibadan metropolis, Oyo State, Nigeria. Purposive method was used to select four manufacturing companies operating in Ibadan metropolis while simple random sampling technique was used to select one hundred and twenty (120) respondents from the total population of one thousand three hundred (1,300) staff of all selected four manufacturing companies. Data was sourced through a structured questionnaire and data was analysed with the aid of Mean, Standard deviation and Pearson Product Moment Correlation Coefficient. Results reveal that supplier development has significant influence on operational performance of manufacturing organizations in terms of reduction of production cost, improving quality of product, speed to the market and operational flexibility. The study also confirms that insufficient inducements to the supplier, lack of trust between parties and insufficient supplier resource are major factors affecting the implementation of supplier development in Nigerian manufacturing industry. The study therefore recommends that management of manufacturing firms should implement the application of supplier development concept so as to have competitive advantage and wax stronger in a global competitive environment

keywords:

Supplier Development, Organization Performance, Manufacturing Firms, Financial Support

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