The purpose of this paper is to examine the role of supplier development activities (SDAs) in the context of three major performance outcomes (POs), i.e. supplier performance improvement (SPI), buyer’s competitive advantage improvement (BCAI) and buyer-supplier relationship improvement (BSRI).
A survey was conducted of 214 manufacturing organizations and the data were analyzed using factor analysis, correlation analysis and multiple hierarchical regression analysis.
This paper categorizes the identified 28 SDAs and 33 POs into five and three major categories of SDAs and POs, respectively. The results indicate a significant relationship between each aspect of SDAs and POs, except investment. The effect of each category of SDA is determined through a developed framework.
This present study analyzes the SDAs and POs from the buyer’s point of view. A paired buyer and supplier data may provide some additional information about the relationship between SDAs and POs.
The outcome of this study will provide significant information for managers and academicians who are involved in outsourcing.
For the first time, the relationship and effect of each category of SDAs was analyzed in combination with three major POs, i.e. SPI, BSRI and BCAI.
