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Research Journal of Business Management
  Year: 2014 | Volume: 8 | Issue: 4 | Page No.: 390-411
DOI: 10.3923/rjbm.2014.390.411
 
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Factors Influencing Performance of Suppliers: An Empirical Study in Jakarta

Dedie S. Martadisastra, Arief Daryanto, Bustanul Arifin and Endang Gumbira-Sa`id

Abstract:
The aim of the study was to investigate the development of domestic supplier performance as the result of modern retailer-supplier business relationships which was controlled by the effect of combination of factors such as regulation, competition and buyer power. The study presents the results of a survey of packaged processed foods suppliers which was formed as part of a wider study of buyer-supplier business relationships in modern retailer supply chains. The method used in this study is quantitative research with questionnaires sent to 97 companies which consist of large, medium, small and micro scale suppliers. Structural equation modeling analysis was utilized by using partial least square. The findings of this study indicate that the results demonstrate the heterogeneity relationships between supplier and modern retailer. The extent to which modern retailer challenged by competition, supply chain strategy and market share are likely to influence the way inwhich modern retailer deal with suppliers. A part of the suppliers indicated that they get benefited substantially from the presence of modern retailers however, they also face several challenges brought about by buyer power as imposition of several unfair relationship terms, price fixing and poorly supervision as cause of the development and growth of suppliers limitedly. This study is the first attempt to measure regulations, competition and buyer power in the relationships between suppliers and modern retailers and the impact on the performance of suppliers empirically. Further study needed to refine the results of this initial study.
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How to cite this article:

Dedie S. Martadisastra, Arief Daryanto, Bustanul Arifin and Endang Gumbira-Sa`id, 2014. Factors Influencing Performance of Suppliers: An Empirical Study in Jakarta. Research Journal of Business Management, 8: 390-411.

DOI: 10.3923/rjbm.2014.390.411

URL: https://scialert.net/abstract/?doi=rjbm.2014.390.411

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