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On the effectiveness of supplier development programs: the role of supply-side moderators

On the effectiveness of supplier development programs: the role of supply-side moderators
On the effectiveness of supplier development programs: the role of supply-side moderators

Given the managerial/financial commitments needed for supplier development programs, buying firms need to be selective of the suppliers they engage for development. This paper examines the moderating role of five supply-side factors (i.e. supplier size, supply share, product complexity, buyer-supplier integration, and the supplier's management systems) in the relationship between supplier development and supplier performance, through a structural model, which is developed theoretically, and tested empirically using survey data of 142 firms. The results indicate that when supplier development is in the form of buyer direct involvement, its impact on supplier performance is significantly moderated by supplier size, product complexity, buyer-supplier integration, and the supplier's management systems. Meanwhile, the impact of supplier development, in the form of assessment/certification, is moderated by buyer-supplier integration. The outcomes of this paper fill the gaps in the existing knowledge of supplier development, and show the sensitivity of supplier development programs to some newly introduced supply-side factors.

Management system, Product complexity, Supplier development, Supplier integration, Supplier performance, Supplier size, Supply share
0166-4972
Saghiri, Soroosh
6bfd600c-bdd1-4dde-9f33-d3f138e85e9d
Wilding, Richard
a318cbdf-a9e2-4708-a570-267e1d161b4a
Saghiri, Soroosh
6bfd600c-bdd1-4dde-9f33-d3f138e85e9d
Wilding, Richard
a318cbdf-a9e2-4708-a570-267e1d161b4a

Saghiri, Soroosh and Wilding, Richard (2021) On the effectiveness of supplier development programs: the role of supply-side moderators. Technovation, 103, [102234]. (doi:10.1016/j.technovation.2021.102234).

Record type: Article

Abstract

Given the managerial/financial commitments needed for supplier development programs, buying firms need to be selective of the suppliers they engage for development. This paper examines the moderating role of five supply-side factors (i.e. supplier size, supply share, product complexity, buyer-supplier integration, and the supplier's management systems) in the relationship between supplier development and supplier performance, through a structural model, which is developed theoretically, and tested empirically using survey data of 142 firms. The results indicate that when supplier development is in the form of buyer direct involvement, its impact on supplier performance is significantly moderated by supplier size, product complexity, buyer-supplier integration, and the supplier's management systems. Meanwhile, the impact of supplier development, in the form of assessment/certification, is moderated by buyer-supplier integration. The outcomes of this paper fill the gaps in the existing knowledge of supplier development, and show the sensitivity of supplier development programs to some newly introduced supply-side factors.

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More information

Accepted/In Press date: 2 February 2021
Published date: May 2021
Keywords: Management system, Product complexity, Supplier development, Supplier integration, Supplier performance, Supplier size, Supply share

Identifiers

Local EPrints ID: 472791
URI: http://eprints.soton.ac.uk/id/eprint/472791
ISSN: 0166-4972
PURE UUID: 5c4d7842-12e3-45ea-a403-0fee3fd9ca6f
ORCID for Soroosh Saghiri: ORCID iD orcid.org/0000-0003-3100-3207

Catalogue record

Date deposited: 19 Dec 2022 17:33
Last modified: 06 Jun 2024 02:16

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Contributors

Author: Soroosh Saghiri ORCID iD
Author: Richard Wilding

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