As Jon has pointed out in his comment.
The correct sequence is: latex file.tex, bibtex file.aux, latex file.tex, latex file.tex. (Note that the extensions .tex and .aux are not strictly necessary, but are implied and thereby used even when you omit them. And of course, you can use any of the following commands in place of latex: latex (produces .dvi by default), pdflatex (produces .pdf by default), lualatex, or xelatex -- these last two require the use of a slightly different preamble from 'regular' LaTeX.)
To test a bibtex run use example files at http://andy-roberts.net/writing/latex/bibliographies
Download bib.tex and sample.bib to a folder. Run pdflatex bib-> bibtex -> pdflatex bib-> pdflatex bib from that folder with proper sequence to get bib.pdf
Alternatively one can automate the compiling using latexmk and arara
latex file.tex,bibtex file.aux,latex file.tex,latex file.tex. (Note that the extensions.texand.auxare not strictly necessary, but are implied and thereby used even when you omit them. And of course, you can use any of the following commands in place oflatex:latex(produces.dviby default),pdflatex(produces.pdfby default),lualatex, orxelatex-- these last two require the use of a slightly different preamble from 'regular' LaTeX.) – jon Feb 21 '14 at 20:12pdflatex bib->bibtex->pdflatex bib->pdflatex bibfrom that folder with proper sequence to getbib.pdf– texenthusiast Feb 21 '14 at 20:25