Enhancing Buyer Competitive Advantage: The Role of Supplier Flexibility in the FMCG Sector
Keywords:
FMCG, supplier, flexibility, performance, competitive advantage, customerAbstract
Background of the study: This research intends to evaluate the impacts of supplier flexibility on supplier performance and buyer competitive advantage, particularly in Pakistan's fast-moving consumer goods (FMCG) sector. The current world has made buyer competitiveness a function of supplier performance, and this paper tries to identify factors such as information sharing, information quality, environmental uncertainties, and buyer-supplier relations. The study would be aimed at filling the gaps in the existing literature, especially about supplier flexibility and how it leads to improvement for both the supplier and the buyer.
Methodology: A causal research design was used in this study. Purposive sampling was utilised to collect data from 288 respondents who work in FMCG companies in Karachi, Pakistan. Responses were collected on a five-point Likert scale for providing numerical values. Cronbach's Alpha values were used for data analysis through Smart PLS, and the reliability of the data collected was ensured.
Results: Thus, the analysis indicates that the supplier's flexibility enhances supplier performance and contributes to competitive buyer advantage. It supports partial mediation. Thus, the commitment of both buyers and suppliers and the exchange of accurate information between them contribute to higher supplier performance and flexibility.
Conclusions: Environmental uncertainty is the primary driver of buyer competitive advantage. The study sets up supplier flexibility as a significant factor in developing competitive advantage in the FMCG industry and underlines the need for supplier development and relationship management. Firms should focus on these areas to improve market sensitivity and sustain competitive advantage.
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