Working towards Supplier Service Quality and EODB: Insights from Indian SMEs

Volume 12 Issue 3 December - February 2018

Research Paper

Working towards Supplier Service Quality and EODB: Insights from Indian SMEs

Surjit Kumar Gandhi*, Anish Sachdeva**, Ajay Gupta***

* Research Scholar, Department of Industrial and Production Engineering, Dr. B. R. Ambedkar National Institute of Technology, Jalandhar, Punjab, India.

**-*** Associate Professor, Department of Industrial and Production Engineering, Dr. B. R. Ambedkar National Institute of Technology, Jalandhar, Punjab, India.

Gandhi,S.K., Sachdeva, A., and Gupta, A. (2018). Working towards Supplier Service Quality and EODB: Insights from Indian SMEs. i-manager’s Journal on Management, 12(3), 11-30. https://doi.org/10.26634/jmgt.12.3.13880

Abstract

The formation of manufacturer-supplier partnerships has emerged as a significant and popular competitive strategy in marketing channel relationships. To ensure their operational and financial benefits, small-medium manufacturing enterprises must work closely with the suppliers and the inter-firm linkage between the manufacturer-supplier units may involve all possible forms of economic relationships between them. This study highlights that prior to assess supplier service, the internal working of manufacturing units towards supply function and also ability to provide Ease of Doing Business (EODB) needs to be assessed. 120 executives working in supplier units providing raw materials and other supplies to SMEs (Small and Medium-sized Enterprises) located in north India responded to a questionnaire survey. The respondents were asked to assess service quality offered by the buyer units towards facilitating the supplier's working and EODB on 1 to 5 Likert scale. Construct validation using exploratory factor analysis showed an interpretable latent structure consisting of 4 determinants and 21 indicators. Confirmatory factor analysis synthesized a purified, valid and reliable service quality measurement scale with 4 determinants and 16 indicators. It was concluded that SMEs need to improve working towards suppliers on four dimensions, viz., Assurance, Communication, Adaptability, and Empathy to carve a win-win situation. The scale thus developed can be used by managers of small-medium manufacturing units in identification of opportunities for assuring service excellence to their suppliers to facilitate their working and improve performance thereby mutually benefitting both partners and the whole supply chain.