Supply chain management plays essential role on improvement of the efficiency of production systems. It helps firms meet their expectations, deliver their products on time and build a good brand. This paper performs an empirical investigation to study the effect of good relationships among various suppliers on financial figures in an Iranian automaker. The proposed study investigates the effects of seven variables including communication, cooperation, commitment, compatibility, organization climate, dependency and trust on two financial figures including return on assets and return on equities. Using structural equation modeling, the study detects that communication, dependency and trust influence positively on return on assets. In addition, communication, cooperation, trust and commitment have positive impact on return on equities.
Contractor selection plays essential role on development of business industries and any selection strategy is normally involved with various factors. This paper presents an empirical investigation to determine important factors influencing contractor selection to increase profitability. The proposed model of this paper is implemented for an Iranian constructor firm named Kayson Company located in city of Tehran, Iran. The study has been accomplished among top managers who worked for this firm. Using structural equation modeling, the study determines that five factors including performance, believes, flexibility, quality, price and services influence on profitability when a contractor is to be chosen.