Strengthening the Sri Lankan Clothing Supply Chain

Abstract

The aim of this paper is to explain the impact of implementing supplier development practices by retailers on suppliers' performance in the Sri Lankan context. A structured questionnaire is used as the data collection instrument from a sample of 100 clothing manufacturers in Sri Lanka. Structural Equation Model (SEM) is employed as the main analysis approach using SMARTPLS. The model developed demonstrates a significant relationship between supplier development practices and suppliers' performance. The key findings were compared with prevailing literature which is based on both developed and developing economies; consequently managerial implications were drawn in terms of what type of supplier development practices can be initiated by retailers in future to take out better performance from the suppliers in the clothing industry.