Determinants of customer supplier relationship in the manufacturing sector: a case of small and Medium Enterprises in Dar es Salaam, Tanzania

The main objective of the study was to assess the determinants of customer-supplier relationship in the manufacturing sector of Tanzania. The specific objectives were to determine the influence of three independent variable―trust, information sharing and co-operation¬―on the effectiveness of customer-supplier relationship in the SME sector in Tanzania. The study used both quantitative and qualitative analysis with the mean, Standard Deviation and Multiple Regression being used for analysis. Purpose and convenient sampling methods were used in choosing 102 respondents from different manufacturing SMEs in Dar es Salaam region, Tanzania. In this study structured questionnaires were the main instruments used to collect data. A 5-point Likert scale was used in data collection to facilitate and classify the respondents’ attitudes towards the independent variables used in the study. The data were analyzed quantitatively using the Statistical Package for Social Sciences (SPSS) to analyze and determine the mean, standard deviation and multiple regression. The study found that two of the three independent variables―trust and information sharing―had a strong positive relationship with the customer-supplier relationship. Based on the findings, the study recommends that SMEs should focus on fostering the two determinants―trust and information sharing―to achieve the desired organizational goals.