Modelling the performance effects of strategic partnerships and supplier development in South African clothing firms

Ntombizodwa J. Matsoma and Intaher M. Ambe

International Journal of Economics and Business Research, 2026, vol. 30, issue 2, 47-65

Abstract: This study examined the performance impact of strategic partnerships (SP) and enterprise supplier development (ESD) within South Africa's clothing manufacturing sector. It explored how procurement-driven mechanisms contribute to firm competitiveness, efficiency, and inclusive industrial growth. Structural equation modelling was applied to analyse responses from 621 clothing manufacturers operating in three provinces of South Africa. The findings revealed that both SP and ESD exert statistically significant positive effects on firm performance, particularly in enhancing cost efficiency, reducing lead times, and improving product quality. SP fosters innovation and relational stability, while ESD strengthens supplier capacity, infrastructure readiness, and compliance. However, persistent barriers such as financial exclusion, policy misalignment, and global sourcing pressures continue to constrain local industrial revitalisation. The findings inform procurement and industrial policy by demonstrating how institutionalising SP and ESD within buyer-supplier relationships can drive performance and support national development goals. This research offers a validated framework for leveraging relational procurement to foster competitiveness, local supplier upgrading, and INCLUSIVE economic transformation.

Keywords: strategic partnerships; SP; enterprise supplier development; ESD; procurement; performance; clothing manufacturing; South Africa. (search for similar items in EconPapers)
Date: 2026
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