Does supplier development matter for procurement performance in thetextile industry? The moderating role of contract management difficulty

The research aims to examine the impact of supplier development on procurement performance, taking into consideration contract management difficulties as a moderating variable. The research method section of the study employs a cross-sectional research design. In this survey technique, a questionnaire is employed to collect primary data from 220 respondents from the purchasing department via Google Forms through an adopted questionnaire. The initial step in our analysis was to clean and analyse the data using SPSS and SmartPLS 3 software, then incorporate structural equation modelling (SEM) to conduct our analysis. The findings confirmed that supplier development affects procurement performance. In addition to this, the contract management difficulties suggested a negative and significant impact on procurement performance. Furthermore, the relationship between supplier development and procurement performance is moderated by contract management difficulty. These unique findings highlight the importance of supplier development and effective contract management in improving procurement performance in the textile industry. The work’s implementation of transaction cost theory to analyse how supplier development impacts sourcing capability is recognized as the primary theoretical contribution.