SUPPLIER SELECTION CRITERIA IN THE CONTEXT OF CITY GOVERNMENT: EVIDENCE FROM RENOWNED ORGANIZATIONS OF KARACHI CITY
Keywords:
Supplier, Selection Criteria, State Owned Enterprises, Pakistan, Under-Developed CountriesAbstract
Supplier selection is one of the most important elements of the procurement process which has the ability to influence the performance of the entire supply chain management. Thus, it is considered as one of the major factors in the supply chain strategy in multinational organizations. Contrarily, least attention is given to the subject by the companies originated in Pakistan. Lack of research in this domain is also impairing this issue. Regardless of the importance of the supplier selection subject, the state-owned companies in Pakistan, are specifically, paying least concern towards it. Thus, the purpose of this study is to identify the importance of different factors of suppliers election, by the state-owned enterprises working under the city government of Karachi. In order to simplify the model, researchers predominantly focused on the generic criteria for supplier selection and further included some other variables like HSSE/ ISO policies and flexible contract terms to the research model. Moreover, moderation has also been used in order to replicate the model effectively with the scenario of Karachi. After adoption of the generic model of supplier selection, Hayes model has been used for the analysis of data. The study findings reveal that the organization working under the City Government of Karachi have different criteria and preferences for supplier selection. Hence the research is pervasive in nature and can be adopted by policy makers and technocrats in order to improve the supplier selection process of state-owned enterprises.
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supporting supplier selection. European journal of purchasing &
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decisions. Journal of purchasing, 2(1), 5-17.
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partnerships. Journal of Purchasing and materials Management,
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selection decisions. European Journal of Operational Research,
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Ireland unemployment pilot project. Public Administration,
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process performance in delivery scheduling environments.
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selection, monitoring practices, and firm performance. Journal
of Accounting and Public Policy, 18(3), 253-281.
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impact of supplier selection and buyer-supplier engagement on
relationship and firm performance. International Journal of
Physical Distribution & Logistics Management, 36(10), 755-775.
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selection criteria through consensus building using Analytic
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Conference on (pp. 1-6). IEEE.
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Business Frontiers, 8(1), 1-10.
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different supplier selection criteria. Management Research
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Lazzarini, S., Chaddad, F., & Cook, M. (2001). Integrating supply chain
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Business & Management, 5(1), 37-51.
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Industrial Marketing, 28(8), 607-619.
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Pearson: New York.
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approaches by Mugenda. Nairobi, Kenya.
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present and future. International Journal of Operational
Research, 27(1-2), 356-373.
Mutai, J. K., & Okello, B. O. (2016). Effects of Supplier Evaluation on
Procurement Performance of Public Universities in Kenya International Journal of Economics, Finance and Management
Sciences, 4(3), 98-106. doi: 10.11648/j.ijefm.20160403.12
Mwikali, R., & Kavale, S. (2012). Factors affecting the selection of
optimal suppliers in procurement management. International
Journal of humanities and social science, 2(14), 189-193.
Naibor, G. S. (2018). Influence of Supplier Selection Criteria on
Performance of Manufacturing Companies in Kenya. Strategic
Journal of Business & Change Management, 5(1), 355-377.
Nurdiyana, N. Z., Azira, R., Siti F. H. & ZainatulAin M. R. (2016).
Supplier Selection Criterion in Automotive Infotainment
Industry: EFA Model, Journal of Education and Social Sciences, 3, 118-122.
Obed, A. & Vincent, O. (2014). An assessment of factors influencing selection
of suppliers of raw materials in manufacturing industry in Kenya:
A Case of the East African breweries limited. International Journal
of Science and Research (IJSR), 3(6), 904-911.
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capacity utilization, and pricing decisions under lead-time
dependent demand. IEEE transactions, 30(2), 151-163.
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in small versus large electronics firms. Journal of Small Business
Management, 33(4), 53-65.
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statistics. First steps in research. Pretoria: Van Schaik, 197-213.
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Evaluation Impact Process Improvement?. International Journal
of Industrial Engineering and Management, 9(3), 708-731.
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context of telecom companies in Pakistan. In Proceedings of the
2014 International Conference on Industrial Engineering and
Operations Management, Bali, Indonesia (pp. 1525-1532).
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of operational research, 153(3), 769-781.
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in supply chain relationships: A conceptual model and research
propositions. Journal of the Academy of marketing Science,
32(1), 61-79.
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business students. Pearson Education.
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framework for the management and reform of public
procurement. Journal of Public Procurement, 6(1/2), 1-26.
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developing countries. International Journal of Public Sector
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selection on the performance of public institutions in Kenya:
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Management Research and Reviews, 4(5), 542.
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India. Management research review, 33(1), 54-65.
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survey on supplier selection criteria in the manufacturing
industry in Malaysia. In 11th Asia Pacific Industrial Engineering
and Management Systems Conference.
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Management: An International Journal, 15(6), 474-487.
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& Production Management, 26(2), 118-140.
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selection in telecommunication industry in Malaysia. Asian J.
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supply chain performance. Manufacturing & Service Operations
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Today, Retrieved from https://www.pakistantoday.com.pk/ 2017/07/04/
insight-to-public-procurement-in-pakistan/
Awino, Z. B. (2002). Purchasing and supply chain strategy: Benefits, barriers
and bridges. An Independent Conceptual Study Paper in Strategic
Management, School of Business, University of Nairobi September.
Baily, P., Farmer, D., & Jessop, D. (2005). Purchasing principles and
management. Pearson Education.
Beamon, B. M. (1999). Measuring supply chain performance. International
journal of operations & production management, 19(3), 275-292.
Bhutta, K. S., & Huq, F. (2002). Supplier selection problem: a comparison
of the total cost of ownership and analytic hierarchy process
approaches. Supply Chain Management: an international
journal, 7(3), 126-135.
Charmaz, K. (2006). Constructing grounded theory: A practical guide
through qualitative analysis. Sage.
Cheraghi, S. H., Dadashzadeh, M., & Subramanian, M. (2004). Critical
success factors for supplier selection: an update. Journal of
Applied Business Research, 20(2), 91-108.
CIPS. (2013). Sourcing in Procurement and Supply. Pretoria: Profex
Publishing.
Danese, P. (2013). Supplier integration and company performance: A
configurational view. Omega, 41(6), 1029-1041.
De Boer, L., Labro, E., & Morlacchi, P. (2001). A review of methods
supporting supplier selection. European journal of purchasing &
supply management, 7(2), 75-89.
Degraeve, Z., & Roodhooft, F. (1999). Improving the efficiency of the purchasing process using total cost of ownership information:
The case of heating electrodes at Cockerill Sambre SA. European
Journal of Operational Research, 112(1), 42-53.
Dickson, G. W. (1966). An analysis of vendor selection systems and
decisions. Journal of purchasing, 2(1), 5-17.
Ellram, L. M. (1990). The supplier selection decision in strategic
partnerships. Journal of Purchasing and materials Management,
26(4), 8-14.
Ernst, R., Kamrad, B., & Ord, K. (2007). Delivery performance in vendor
selection decisions. European Journal of Operational Research,
176(1), 534-541.
Erridge, A. (2007). Public procurement, public value and the Northern
Ireland unemployment pilot project. Public Administration,
85(4), 1023-1043.
Forslund, H., Jonsson, P., & Mattsson, S. A. (2008). Order-to-delivery
process performance in delivery scheduling environments.
International Journal of Productivity and Performance
Management, 58(1), 41-53.
Gahan, P. & Mohanty, M. (2011). Selection of supplier evaluation criteria:
from the perspective of triple bottom line theory and application
of factor comparison method. International Journal of Research
in Commerce & Management, 2(3), 80-89.
Galinska, B. & Bielecki, M. (2017). Multiple Criteria Evaluation of
Suppliers in Company Operating in Clothing Industry. Business
Logistics in Modern Management, 17, 209-229.
Garfamy, R. M. (2011). Management information systems in
pharmaceuticals. International Journal of Business Information
Systems, 7(4), 402-441.
Hallikas, J., Kulha, T., & Lintukangas, K. (2013). The characteristics of
service buying in the business-to-business sector. International
Journal of Procurement Management, 6(3), 280-296.
Handfield, R. B., Blackhurst, J., Elkins, D., & Craighead, C. W. (2007). A framework for reducing the impact of disruptions to the supply
chain: Observations from multiple executives. Supply Chain Risk
Management: Minimizing Disruption in Global Sourcing. Taylor
and Francis, Boca Raton, FL, 29-49.
Hartley, J. L., Duplaga, E. A., & Lane, M. D. (2005). Reverse e-auctions:
exploring reasons for use and buyer’s satisfaction. International
Journal of Integrated Supply Management, 1(4), 410-420.
Hayes, A. F. (2013). Introduction to Mediation, Moderation, and
Conditional Process Analysis: A Regression Based Approach.
New York, NY: The Guilford Press.
Hibadullah, S. N., Habidin, N. F., Zamri, F. I. M., Fuzi, N. M., & Desa, A.
F. N. C. (2014). Critical success factors of lean manufacturing
practices for the Malaysian automotive manufacturers.
International Journal of Quality and Innovation, 2(3-4), 256-271.
Ho, W., Xu, X., & Dey, P. K. (2010). Multi-criteria decision making
approaches for supplier evaluation and selection: A literature
review. European Journal of operational research, 202(1), 16-24.
Huang, S. H., & Keskar, H. (2007). Comprehensive and configurable
metrics for supplier selection. International journal of production
economics, 105(2), 510-523.
Imeri, S. (2013). Key performance criteria for vendor selection-A literature
review. Management Research and Practice, 5(2), 63-75.
Ittner, C. D., Larcker, D. F., Nagar, V., & Rajan, M. V. (1999). Supplier
selection, monitoring practices, and firm performance. Journal
of Accounting and Public Policy, 18(3), 253-281.
Kannan, V. R., & Choon Tan, K. (2006). Buyer-supplier relationships: The
impact of supplier selection and buyer-supplier engagement on
relationship and firm performance. International Journal of
Physical Distribution & Logistics Management, 36(10), 755-775.
Kar, A. K. (2013, September). An approach for prioritizing supplier
selection criteria through consensus building using Analytic
Hierarchy Process and Fuzzy set theory. In Signal Processing,Computing and Control (ISPCC), 2013 IEEE International
Conference on (pp. 1-6). IEEE.
Kar, A. K. (2014). Literature Review of Supplier Selection Criteria.
Business Frontiers, 8(1), 1-10.
Kumar Kar, A., & K. Pani, A. (2014). Exploring the importance of
different supplier selection criteria. Management Research
Review, 37(1), 89-105.
Lazzarini, S., Chaddad, F., & Cook, M. (2001). Integrating supply chain
and network analyses: the study of net chains. Journal on chain
and network science, 1(1), 7-22.
Lynn, L. H. (2006). US research on Asian business: A flawed model. Asian
Business & Management, 5(1), 37-51.
Mathiyalagan, P. Punniyamoorthy, M. & Sudhakar, S. (2009). A supplier
selection construct for exploring supplier selection production in
Indian manufacturing company. Journal of contemporary
research in management, 1(4), 123-136.
Mawhood, P. (1993). Local Government in the Third World. Experience
of Decentralization in Tropical Africa, 2nd Edition. Africa
Institute of South Africa.
MB Schertzer, S., B. Schertzer, C., & Robert Dwyer, F. (2013). Value in
professional service relationships. Journal of Business &
Industrial Marketing, 28(8), 607-619.
McMillan, J. H. & Schumacher, S. (2006). Research in Education, 6th Ed.,
Pearson: New York.
Mugenda, A. (2003). Research methods Quantitative and qualitative
approaches by Mugenda. Nairobi, Kenya.
Mukherjee, K. (2016). Supplier selection criteria and methods: past,
present and future. International Journal of Operational
Research, 27(1-2), 356-373.
Mutai, J. K., & Okello, B. O. (2016). Effects of Supplier Evaluation on
Procurement Performance of Public Universities in Kenya International Journal of Economics, Finance and Management
Sciences, 4(3), 98-106. doi: 10.11648/j.ijefm.20160403.12
Mwikali, R., & Kavale, S. (2012). Factors affecting the selection of
optimal suppliers in procurement management. International
Journal of humanities and social science, 2(14), 189-193.
Naibor, G. S. (2018). Influence of Supplier Selection Criteria on
Performance of Manufacturing Companies in Kenya. Strategic
Journal of Business & Change Management, 5(1), 355-377.
Nurdiyana, N. Z., Azira, R., Siti F. H. & ZainatulAin M. R. (2016).
Supplier Selection Criterion in Automotive Infotainment
Industry: EFA Model, Journal of Education and Social Sciences, 3, 118-122.
Obed, A. & Vincent, O. (2014). An assessment of factors influencing selection
of suppliers of raw materials in manufacturing industry in Kenya:
A Case of the East African breweries limited. International Journal
of Science and Research (IJSR), 3(6), 904-911.
Palaka, K., Erlebacher, S., & Kropp, D. H. (1998). Lead-time setting,
capacity utilization, and pricing decisions under lead-time
dependent demand. IEEE transactions, 30(2), 151-163.
Pearson, J. N., & Ellram, L. M. (1995). Supplier selection and evaluation
in small versus large electronics firms. Journal of Small Business
Management, 33(4), 53-65.
Pietersen, J., & Maree, K. (2007). Statistical analysis II: Inferential
statistics. First steps in research. Pretoria: Van Schaik, 197-213.
Prasad, S. H. C., Kamath, G., Barkur, G. & Nayak, R. (2016). Does Supplier
Evaluation Impact Process Improvement?. International Journal
of Industrial Engineering and Management, 9(3), 708-731.
Rashid, M. (2014, January). Supplier selection and evaluation in the
context of telecom companies in Pakistan. In Proceedings of the
2014 International Conference on Industrial Engineering and
Operations Management, Bali, Indonesia (pp. 1525-1532).
Ray, S., & Jewkes, E. M. (2004). Customer lead time management when both demand and price are lead time sensitive. European Journal
of operational research, 153(3), 769-781.
Roy, S., Sivakumar, K., & Wilkinson, I. F. (2004). Innovation generation
in supply chain relationships: A conceptual model and research
propositions. Journal of the Academy of marketing Science,
32(1), 61-79.
Saunders, M., Lewis, P., & Thornhill, A. (2009). Research methods for
business students. Pearson Education.
Schapper, P. R., Veiga Malta, J. N., & Gilbert, D. L. (2006). An analytical
framework for the management and reform of public
procurement. Journal of Public Procurement, 6(1/2), 1-26.
Shahadat, K. (2003). Supplier choice criteria of executing agencies in
developing countries. International Journal of Public Sector
Management, 16(4), 261-285.
Shiati, M. M., Kibet, Y., & Musiega, D. (2014). Determinants of supplier
selection on the performance of public institutions in Kenya:
Case of Kakamega county, Kenya. International Journal of
Management Research and Reviews, 4(5), 542.
Singh, R. K., Garg, S. K., & Deshmukh, S. G. (2009). The competitiveness
of SMEs in a globalized economy: Observations from China and
India. Management research review, 33(1), 54-65.
Sim, H. K., Omar, M. K., Chee, W. C., & Gan, N. T. (2010, December). A
survey on supplier selection criteria in the manufacturing
industry in Malaysia. In 11th Asia Pacific Industrial Engineering
and Management Systems Conference.
Smith, L. (2014, May 20). 7 Ways to Better Manage Suppliers Effectively.
Digitalis Magazine, Retrieved from https://www.purchasecontrol.com/
blog/improve-supplier-relationship-management/
So, S., & Sun, H. (2010). Supplier integration strategy for lean manufacturing
adoption in electronic-enabled supply chains. Supply Chain
Management: An International Journal, 15(6), 474-487.
Swafford, P. M., Ghosh, S., & Murthy, N. N. (2006). A framework for assessing value chain agility. International Journal of Operations
& Production Management, 26(2), 118-140.
Tarofder, A. K., & Haque, A. (2007). Exploring critical factors for supplier
selection in telecommunication industry in Malaysia. Asian J.
Mark, 1, 1-13.
Terpend, R., Tyler, B. B., Krause, D. R., & Handfield, R. B. (2008). Buyersupplier
relationships: Derived value over two decades. Journal
of Supply Chain Management, 44(2), 28-55.
Thiruchelvam, S., & Tookey, J. E. (2011). Evolving trends of supplier
selection criteria and methods. International Journal of
Automotive and Mechanical Engineering, 4(1), 437-454.
Tsay, A. A., & Lovejoy, W. S. (1999). Quantity flexibility contracts and
supply chain performance. Manufacturing & Service Operations
Management, 1(2), 89-111.
Upton, D. M. (1994). The management of manufacturing flexibility.
California management review, 36(2), 72-89.
Van Weele, A. J. (2010). Purchasing & supply chain management: analysis,
strategy, planning and practice. Cengage Learning EMEA.
Vonderembse, M. A., & Tracey, M. (1999). The impact of supplier
selection criteria and supplier involvement on manufacturing
performance. Journal of supply chain management, 35(2), 33-
39, http://dx.doi.org/10.1111/j.1745-493X.1999.tb00060.
Weber, C. A., Current, J. R., & Benton, W. C. (1991). Vendor selection criteria
and methods. European journal of operational research, 50(1), 2-18.
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Sultan, M.F., Hassan, M., and Khaskhelly, F.Z. 108
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2018-12-15
How to Cite
Sultan, M. F., Hassan, M., & Khaskhely, D. F. Z. (2018). SUPPLIER SELECTION CRITERIA IN THE CONTEXT OF CITY GOVERNMENT: EVIDENCE FROM RENOWNED ORGANIZATIONS OF KARACHI CITY. Journal of Business Strategies, 12(2), 85–108. Retrieved from https://greenwichjournals.com/index.php/businessstudies/article/view/343
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