The influence of buyer-supplier relationship on the firm’s competitive advantage in the clothing industry: the case of entrepreneurs in Dar es Salaam
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Abstract
The aim of this study was to assess the influence of buyer-supplier relationships on firm’s competitiveness in the Clothing Industry in Tanzania, the case of Dar es Salaam City. Specifically the study intended to examine how joint efforts for product quality in buyer-supplier relationship through improved product quality, to examine how close communication in buyer-supplier relationship can influence flexibility and responsiveness and to examine how collaboration on cost reduction programmes can influence product price. The data collection method was questionnaire which was supported by interview. Also a case study design approach was adopted in the study because the study was descriptive in nature. The study used a sample of 87 respondents and 75 returned the questionnaires. The findings of the study revealed a strong buyer-supplier relationship in the clothing industry and this has largely created competitive advantage to the business since it leads to improvement in quality, responsiveness and flexibility and products of competitive price. The study revealed some challenges. One of the noted challenges was capital and choice of supplier standout, especially for new businesses. The other challenge was communication infrastructure. From the findings, the study recommends that more education on the phenomenon should be given to new starting businessmen to expose them to better ways that they could use to flourish buyer-supplier relationship in their businesses as the phenomenon has proved to be of great importance on firm competitive advantage in the clothing industry.