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Article
Publication date: 1 September 2005

Cristóbal Sánchez‐Rodríguez, David Hemsworth and Ángel R. Martínez‐Lorente

Supply chain management is an increasingly important organizational concern, and proper management of supplier relationships constitutes one essential element of supply…

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8714

Abstract

Purpose

Supply chain management is an increasingly important organizational concern, and proper management of supplier relationships constitutes one essential element of supply chain success. However, there is little empirical research that has tested the effect of supplier development on performance. The main objective is to analyze the effect of supplier development practices with different levels of implementation complexity on the firm's purchasing performance.

Design/methodology/approach

Three supplier development constructs were defined: basic supplier development, moderate supplier development, and advanced supplier development. Three structural models were hypothesized and tested using structural equation modeling through field research on a sample of 306 manufacturing companies in Spain.

Findings

Identified important interrelationships among the various supplier development practices, basic, moderate, and advanced. Also indicated that the implementation of supplier development practices significantly contributes to the prediction of purchasing performance.

Research limitations/implications

The use of a single key informant could be seen as a potential limitation of the study. The study was a cross‐sectional and descriptive sample of the manufacturing industry at a given point in time. A more stringent test of the relationships between the different levels of supplier development and performance requires a longitudinal study, or field experiment.

Practical implications

This study focused on supplier development practices and revealed how involving suppliers in supplier development activities is important and may help buyers to increase their purchasing performance. The findings from the structural analysis should provide practicing managers with insights on how these practices and their benefits are related in terms of purchasing performance, thus affecting their ability to make better sourcing decisions.

Originality/value

Fills an important gap in the purchasing literature with respect to the area of supplier development. While there is much written about supplier development based on conceptual and case study research, this study is unique in that it is the first attempt to empirically model the relationships between different levels of supplier development and their impact on purchasing performance using a comprehensive set of practices.

Details

Supply Chain Management: An International Journal, vol. 10 no. 4
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 15 August 2008

Amelia S. Carr, Hale Kaynak, Janet L. Hartley and Anthony Ross

The purpose of this paper is to extend our understanding of the importance of supplier dependence on the buyer's firm and its relationship to supplier training and supplier

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5731

Abstract

Purpose

The purpose of this paper is to extend our understanding of the importance of supplier dependence on the buyer's firm and its relationship to supplier training and supplier involvement in product development with respect to the supplier's performance.

Design/methodology/approach

A random sample of 231 firms provided the data that were analyzed for this study. Using structural equation modeling, a sub‐set of the sample consisting of 166 manufacturing firms was used to test the five hypothesized relationships in the model.

Findings

The main findings indicate that supplier dependence is a significant contributor to increasing supplier participation in buyer supported training and increasing supplier involvement in product development. Also, supplier training and supplier involvement are significant contributors to the supplier's operational performance.

Research limitations/implications

The model tested in this study used a random sample of US manufacturing firms. Thus, future studies should include a random sample of non‐manufacturing firms and firms outside of the USA. The study explored the buyer's perspective only; a study of suppliers may provide further insights to extend this study. Although the use of supplier training was relatively low, significant relationships were identified.

Practical implications

Based on this research, key suppliers can better understand the relationships among supplier dependence, supplier training, supplier involvement in product development and their effects on supplier's operational performance.

Originality/value

Although supplier development has emerged in previously published studies as a critical factor in improving performance, the role of supplier dependence on the buyer has not been empirically examined. Further, an integrated research model that investigates the relationships among supplier dependence, supplier training, supplier involvement in product development and supplier's operational performance has not been offered.

Details

International Journal of Operations & Production Management, vol. 28 no. 9
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 9 March 2012

Mads Mortensen and Jan Arlbjørn

This paper aims to investigate the concept of inter‐organisational supplier development programs and to stress the importance of considering suppliers' interest and…

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3084

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.

Details

Supply Chain Management: An International Journal, vol. 17 no. 2
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 1 February 1997

Daniel R. Krause and Lisa M. Ellram

Presents results of a survey on supplier development. Surveys were mailed to a random sample of 1,504 NAPM members. The sample was split into two groups depending on how…

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10293

Abstract

Presents results of a survey on supplier development. Surveys were mailed to a random sample of 1,504 NAPM members. The sample was split into two groups depending on how respondents judged the results of their supplier development effort, either exceeding or falling short of expectations. The responses of these two groups to various questionnaire items were investigated to identify and gain insight into factors that contribute to supplier development success. The analysis suggests that buying firm respondents who reported their firms’ supplier development efforts to be satisfactory were more likely to have a proactive philosophy regarding suppliers’ performance, put more effort and resources into their supplier development efforts, and exhibit a greater willingness to share information with their suppliers than their counterparts who were generally dissatisfied with their firms’ supplier development results.

Details

International Journal of Physical Distribution & Logistics Management, vol. 27 no. 1
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 2 February 2010

Kannan Govindan, Devika Kannan and A. Noorul Haq

The purpose of this paper is to present an approach to identify and rank the criteria used for the supplier development using interpretative structural modeling (ISM).

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6063

Abstract

Purpose

The purpose of this paper is to present an approach to identify and rank the criteria used for the supplier development using interpretative structural modeling (ISM).

Design/methodology/approach

The paper develops a framework to analyze the interactions among the criteria such as competitive pressure, evaluation and certification system, incentives, supplier development programs, inter‐organizational communication, buyer‐supplier relationship, supplier commitment, supplier performance, asset specificity, joint action, trust, long‐term strategic goals, top management support, purchasing performance, and supplier strategic objective for the supplier development using ISM. The developed framework is illustrated using a case study taken in an automobile firm.

Findings

The paper contributes to research in supply chain management (SCM) and particularly in supplier development. Research in the area of SCM has intensified in recent years for a number of reasons. Managers have now realized that actions taken by one member of the chain can influence the responsiveness, efficiency and profitability of the complete supply chain. Firms are increasingly thinking in terms of competing as part of a supply chain against other supply chains, rather than as a single firm against other individual firms.

Research limitations/implications

Since the proposed framework is applied for only a single company, further studies can be done using the same framework for several companies in India. This will provide a better understanding of how the variables that influence supplier development are affected in different types of industry.

Practical implications

Managers can use the proposed framework to develop better relationships with suppliers and to create management responses that influence and improve their relationships with them.

Originality/value

This paper uses 15 criteria to propose a framework for the supplier development and also finds the interactions between the criteria which influence the most and the least to improve the relationship with the suppliers.

Details

Industrial Management & Data Systems, vol. 110 no. 1
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 29 April 2021

Abhishek Srivastava, Parimal Kumar and Arqum Mateen

This study analyzes supplier development investment decisions under a triadic setting (two buyers and a common supplier). In a triadic setting, the supplier development

Abstract

Purpose

This study analyzes supplier development investment decisions under a triadic setting (two buyers and a common supplier). In a triadic setting, the supplier development investment decision of one buyer can have a spillover effect of the benefits on other buyer. Therefore, it is utmost important for the investing buyer to understand the impact of benefit spillover on other competing buyers'. Therefore, one of the purposes of this study to analyze the supplier development investment decision of buyers under two scenarios. First, under cooperative development structure where both buyers jointly invest in supplier and share equal benefits. Second, non-cooperative investment structure where both buyers individually invest in supplier development and share unequal benefits.

Design/methodology/approach

In order to assess the impact of supplier development investment decisions on the profitability of buyers and the common supplier, the authors used game-theoretic approach. The authors design a Stackelberg leader-follower game where the supplier acts as Stackelberg leader and buyers follow the supplier's pricing decision to maximize their profit level. Additionally, both buyers decide either to cooperate or non-cooperate while investing in supplier development.

Findings

The results show that the cooperative investment is always an optimal strategy for buyers and supplier. Interestingly, the efficient buyer's share of investment level is lower under non-cooperative investment structure and he is better-off due to its capability of taking advantage from the other buyer's investment. However, the inefficient buyer, on the other hand, is worse-off under non-cooperative investment. Furthermore, comparative analysis between the two shows that initially, the buyer who extracts more profit because of the other buyers' development investment tends to prefer the non-cooperative development investment set up. However, after a certain point, the same buyer is better-off under cooperative development investment through cooperation, and sharing equal benefit of the supplier's development, as the supplier in turn, starts charging a higher wholesale price under non-cooperative investment case.

Originality/value

To the best of authors’ knowledge, extant literature on supplier development has mostly focused on. One supplier-one buyer; thus, the learning spillover effect has almost been unexplored. In real-life, different buyers often purchase from the shared supplier. Therefore, it is important to analyze the spillover of supplier development benefits due to investment of one buyer on other buyer and deriving the condition under which buyers would be incentivized to invest jointly or individually.

Details

Benchmarking: An International Journal, vol. 28 no. 10
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 20 August 2020

Andrea Nana Ofori-Boadu, De-Graft Owusu-Manu, David John Edwards and Fafanyo Asiseh

This paper presents a conceptual model of effective subcontractor development practices to guide general contractors' development of a network of high-performing…

Abstract

Purpose

This paper presents a conceptual model of effective subcontractor development practices to guide general contractors' development of a network of high-performing subcontractors (SCs) for Leadership in Energy and Environmental Design (LEED) projects.

Design/methodology/approach

Drawing from supplier development theories and practices in the manufacturing sector, a mixed interpretivist and empirical methodology is adopted to examine the body of knowledge within literature for conceptual model development. A self-reporting survey questionnaire with a five-point Likert scale is used to assess 30 construction professionals' perceptions of the effectiveness of 37 SC development practices classified into five categories. Descriptive statistics, weighted means, and t-tests are used for data analysis.

Findings

SC prequalification, commitment, incentives, evaluation and feedback practices can be effective in generating high-performing SCs. Practices that require more direct involvement and linkages between GC and SC are perceived to be less effective.

Research limitations/implications

Theoretical contributions include a framework to foster future research to advance knowledge and understanding to enhance the adoption of SC development practices in the construction sector.

Practical implications

Implementation of ranked SC development practices can equip GCs with a network of high-performing SCs for improved competitive advantage and revenues.

Originality/value

The proposed conceptual model expands discussions on the modification of supplier development theories and practices currently utilized in the manufacturing sector toward their application in the construction sector. This research differs from previous research, which primarily focused on the manufacturing sector.

Details

Engineering, Construction and Architectural Management, vol. 28 no. 4
Type: Research Article
ISSN: 0969-9988

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Article
Publication date: 20 July 2012

Pilar Arroyo‐López, Elsebeth Holmen and Luitzen de Boer

The purpose of this paper is to evaluate the effects of supplier development programs on the short‐term performance of suppliers and the more long‐term development of…

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4227

Abstract

Purpose

The purpose of this paper is to evaluate the effects of supplier development programs on the short‐term performance of suppliers and the more long‐term development of their capabilities given the relational learning context of the dyad.

Design/methodology/approach

Data were collected through a survey of strategic suppliers from original equipment manufacturers of the automotive industry located in Mexico.

Findings

Results suggest that basic and widely used forms of supplier development hardly lead to improved operational and financial performance of suppliers. More demanding and less frequently used forms of supplier development may lead to improved supplier performance given the suppliers have sufficient absorptive capacity and the presence of an adequate collaborative and relational learning context.

Research limitations/implications

Only suppliers of firms in the automotive industry were surveyed; participant suppliers were referred by buying firms operating in Mexico.

Practical implications

When designing supplier development activities, buying firms need to take into consideration that high involvement and investment on supplier development activities is required when their goal is to improve the supplier base.

Social implications

Governments organizing supplier development programs should consider the importance of promoting knowledge transfer activities above evaluation and feedback to assure the success of their efforts to develop the national supply industry.

Originality/value

The value of supplier development programs is explored in this paper, taking into account the efforts of the buying firms to transfer knowledge and the moderating effect of the relational and learning context. Relevant recommendations for the design of such programs to buyers, suppliers and government are discussed.

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Article
Publication date: 6 April 2012

Phillip Marksberry

Toyota's management system, more formally known as the Toyota production system (TPS) is one of the most benchmarked business improvement strategies in modern industry…

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11371

Abstract

Purpose

Toyota's management system, more formally known as the Toyota production system (TPS) is one of the most benchmarked business improvement strategies in modern industry. While many companies try to emulate Toyota's success using a variety of different approaches, most practitioners are not aware how Toyota replicates TPS at suppliers. The purpose of this paper is to investigate the in‐house capabilities that are transferred from Toyota to suppliers as a way to more deeply understand how TPS can evolve.

Design/methodology/approach

This work studies Toyota's supplier development practices by evaluating organizational documents using latent semantic analysis (LSA). LSA is a theory and method for extracting and representing the contextual‐usage and meaning of words and phrases by statistical computation applied to text. LSA is based on singular value decomposition (SVD), which is a mathematical matrix decomposition technique using factor analysis.

Findings

This work shows that Toyota targets processes, rather than whole systems, in assisting suppliers to be more effective at abnormality management. Findings also show that Toyota's approval process doesn't necessarily support major kaizen at suppliers yet does encourage minor day‐to‐day kaizen. Finally, this work reports that the Toyota Way for suppliers does not have to be adopted by suppliers, but does represent “A Way” to interact with suppliers to drive both culture and productivity simultaneously.

Originality/value

The paper uses a new method for analyzing Toyota's supplier development practices by mathematically representing and analyzing Toyota's organizational documents. This new method allows various components and features of Toyota's supplier development process to be represented and described in a way that offers many unique insights.

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Article
Publication date: 13 March 2009

Cristóbal Sánchez‐Rodríguez

This purpose of this paper is to introduce strategic purchasing (SP) and supplier development (SD) as constructs that could have the potential to contribute to the success…

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4301

Abstract

Purpose

This purpose of this paper is to introduce strategic purchasing (SP) and supplier development (SD) as constructs that could have the potential to contribute to the success of relationship marketing efforts. Based on the relational view of the firm, the authors propose that SP is an antecedent of SD practices and can create value for the buying firm in terms of better purchasing performance.

Design/methodology/approach

Hypotheses derived from the key features of SP and SD practices are tested using structural equation modeling through field research on a sample of 306 manufacturing companies in Spain.

Findings

Findings from this study indicate that there is significant evidence to support the hypothesized model in which SP exerts a direct influence on SD practices and purchasing performance, as well as an indirect impact on purchasing performance mediated through SD.

Research limitations/implications

Further research is necessary to increase our understanding of a buyer's strategic purchasing and supplier development practices and more specifically how suppliers could develop a supporting environment to facilitate the strategic alignment of these two concepts. The limitations of the survey are also discussed.

Practical implications

The findings from this study provide supplying firms with an understanding of how buying firms use SD to deploy their SP initiatives in order to achieve improvements in purchasing performance.

Originality/value

While there is some literature analyzing SP and the implications for buyer‐supplier relationships, the relationship between SP and SD practices and their effect on purchasing performance has not been yet analyzed.

Details

Journal of Business & Industrial Marketing, vol. 24 no. 3/4
Type: Research Article
ISSN: 0885-8624

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