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In this paper, researchers have discovered critical factors for supplier relationship development and their relationship among each other. In order to analyze this exogenous variable in relation with endogenous variables was done in SPSS. This result has been validated on Amos for second order confirmation for reliability of the items with their exogenous variables. For keeping core competency in mind as well as make buyer more compatible. They have to make their supplier competitive as well to stay in market. As it is not possible to manufacture all components in house, supplier base of buyer should be self-efficient and developed one. This development of supplier can be achieved by applying different supplier development practices as per the requirement. For being competitive in market, supplier base of buyer should be self-efficient and this can be achieved through implementing supplier development practices. The multi-item scale shows strong evidence of reliability as well as convergent, Discriminant validity in a sample. Confirmatory Factor Analysis for first order and second order and Reliability Analysis are applied on data for validation of instrument. Data from 512 respondents from automotive industry were used for analysis.
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