Effect of Buyer-Suppliers Relationships on Buying Firm Competitiveness in Medium and Large Scale Hotels and Restaurants in Nakuru Municipality

Abstract

The main purpose of this study was to investigate the effects of buyer-suppliers relationships on the buying firm competitiveness in medium and large scale hotels and restaurants in Nakuru municipality in relation to trust and commitment. The study was guided by resource based view theory (RBV) which encourages sharing of resources and building long-term relationships between buyers and suppliers to ensure that both parties achieve competitive advantage. Explanatory research design was used in this study because it analyses the cause-effect relationship. Census survey technique was employed in picking respondents for the study. Data was collected from a sample of 162 purchasing officers. Five point Likert type of questionnaire was used to solicit primary data. The data analysis methods used were descriptive and inferential statistics, utilizing a multiple regression analysis model. the findings of this study indicated that both trust and commitement in buyer –supplier relationship postively and sinficantly affect firm competitiveness.The study concludes that there is a clear link between the relationship the buyer firm has with its major suppliers and its competitive position in its customer market. Therefore, it’s recommended for a buying firm to establish and develop positive relationships with its major suppliers. Keywords: Buyer, Supplier, Trust, Commitment, Firm Competitiveness