Supplier development efforts: The suppliers' point of view

Reliance on few competent suppliers has driven companies to be more involved in their suppliers' activities. Supplier development (SD) is a supplier management practice implemented with strategic suppliers. Whereas research adopting the customer's standpoint indicates that SD activities have a positive impact on supplier performance, few studies have examined the supplier's perspective. We explore the conditions favoring suppliers' participation in SD activities using survey data from a sample of Canadian manufacturers. The empirical results of this study suggest that trust and preferred customer status are key antecedents of supplier participation in SD activities, and confirm the positive impact of this participation on the suppliers' operational performance. The results indicate that a dynamic environment also motivates suppliers to participate in SD activities.

► Trust and preferred customer status are key antecedents of supplier participation in supplier development activities.
► Supplier participation in supplier development activities has a positive impact on the supplier's operational performance.
► A dynamic environment motivates suppliers to participate in supplier development activities.
► Preferred customer status partially mediates the relationship between trust and supplier development activities.