An empirical study of supplier development practices in a developing economy

Part of : WSEAS transactions on business and economics ; Vol.6, No.6, 2009, pages 255-268

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Pages:
255-268
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Abstract:
SME (Small and Medium Enterprises) sector forms as much as 99% of business entities around theworld. While SMEs in developed economies are getting fair attention of policy makers, those in developing economies,particularly in South Asia, are yet to get such attention. Being the primary suppliers to most exporting rms, or beingexporters themselves, the performance of SMEs can be fairly expected to contribute to industrial development andgrowth of an economy. With the recent emphasis by businesses around the world on \core-competence", more andmore activities are being outsourced to SMEs in developing economies. However the performance and business prac-tices of SMEs in developing economies remain much lower than those of SMEs from developed economies. Consideringthe lack of required policy support for SMEs, eective Supplier Development by large buyers presents a potent toolfor developing the performance and business practices of SMEs in developing economies. Based on the literature baseaddressing current supplier development practices around the globe, particularly in developing economies, this paperpresents the results of a survey of Supplier Development activities undertaken by manufacturing rms in Pakistan.The results oer an insight into the most and least used techniques with discussion on the reasons of adoption orotherwise. The results will be of interest to large rms that outsource their business activities to South Asia.
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Keywords:
SMEs, supplier development, outsourcing, developing economies, Pakistan, extended enterprise
Notes:
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