| In the last decade, factors such as increased global competition and outsourcing have increased the level of dependence a buying firm has on its suppliers. In response to these changes, firms have placed more emphasis on their suppliers' performance. Unfortunately, suppliers often do not meet the buying firm's expectations. Thus, one method companies have utilized in an attempt to improve the supplier's performance is supplier development programs. However, these programs have often been met with mixed results.; The intent of this research is to identify the significant factors that contribute to a successful supplier development effort. For this research, supplier development is defined as the transfer of resources for the purpose of improving the supplier's performance and capabilities.; The model for supplier development was developed from an integration of the supplier development, interorganizational commitment, process improvement, and resource- and knowledge-based view literature. The study population was the supplier base of one large company known for its involvement in supplier development activities. A self-administered questionnaire was sent to all suppliers who had participated in the supplier development activities of this company. Additionally, the buying organization was asked to complete a questionnaire regarding each of its suppliers; thus making this study dyadic in nature.; One objective of the study was to determine what factors were important in ensuring that the supplier would implement the practices that were taught. This study indicates that supplier development activities or practices that utilize extensive resources, which emphasize follow-up visits to the supplier, are paramount in ensuring the practices were implemented. Also, a strong association between implementation of practices and improved supplier performance was evident. A final finding was that the more the supplier perceived the customer as being helpful in correcting its product or process problems, the more committed the supplier became to the relationship. |
