Inter‐organisational supplier development: the case of customer attractiveness and strategic fit

Abstract

Purpose

This paper aims to investigate the concept of inter‐organisational supplier development programs and to stress the importance of considering suppliers' interest and motivation when implementing development initiatives.

Design/methodology/approach

This paper's theoretical framework is based on an in‐depth literature review that analyses how extant supplier development literature considers an inter‐organisational approach. A single case study of eight inter‐organisational relationships is also included.

Findings

The literature review reveals a lack of focus on inter‐organisational approaches to supplier development, even though the literature mentions it as a missing theme. Customer attractiveness is presented as one approach that takes supplier view and motivation into consideration. This idea is supported by the case study, which indicates that supplier performance is influenced by perceived customer attractiveness.

Research limitations/implications

This paper is based on only a single case study and does not provide the basis for statistical generalisation. A theory on customer attractiveness is under development, and the analysis presented here is based on the theoretical findings.

Practical implications

Because suppliers can have their own strategic agendas, such as prioritising developments with the most attractive customers, buyers should consider suppliers' perspectives and motivations when analysing and implementing supplier development programs.

Originality/value

This paper is among the first to focus on the importance of viewing both parties' interest in a buyer‐supplier relationship when implementing supplier development initiatives. The concept of customer attractiveness as an inter‐organisational approach represents a valuable addition to supplier development literature.

Citation

Mortensen, M. and Arlbjørn, J. (2012), "Inter‐organisational supplier development: the case of customer attractiveness and strategic fit", Supply Chain Management, Vol. 17 No. 2, pp. 152-171. https://doi.org/10.1108/13598541211212898