Understanding the effect of supplier relations and market orientation on firm performance: Evidence from Turkey

Developing strong relations with suppliers and adopting a customer-oriented and competitor-oriented approach are important aspects of enhancing firm performance, aiming to gain an advantage in its industry both in market and operational aspects. In addition, having ross-functional sharing of information within the firm provides benefits to enhance the relationship between suppliers and the firm. This study aimed to research whether the positive effects of the strong supplier relations and market orientation as customer-oriented and competitor-oriented on firm performance such as market and operational and whether the positive effects of the cross-functional sharing of information on notion of strong supplier relations. With the knowledge collected from existing literature, a comprehensive questionnaire was created, and delivered online. The study was analysed by 60 participants from different companies in Turkey with different industry under factor analysis, reliability analysis, regression analysis and independent T-test using SPSS tool to test hypotheses. Results support that the cross-functional sharing of information has a positive impact on notion of strong supplier relations and strong supplier relations and customer orientation have an impact on market performance. Finally, this study is intended to add to current literatures a detailed quantitative analysis and is aimed at offering insights into future studies on strong supplier relations and firm performance.