Antecedents, knowledge change speed, and performance in knowledge transfer activities for supplier development

Rapid knowledge change, heightened competition, and shortened product life cycles are just a few of the constants faced by many buying firms in today's markets. Many buying firms have responded to these conditions by outsourcing non-core activities. The quality and cost of a product or service offered in the market is a function, not only of the capabilities of the firm, but also of the network of suppliers who provide inputs to the firm. When a firm finds its suppliers lacking in performance it can help suppliers to develop their capabilities. There are three main goals for this study. The first goal is to identify the important factors that precede and influence firms' investment in knowledge transfer activities. The second goal is to investigate the relationship between knowledge transfer activities and the consequences of knowledge transfer activities. The last goal is to explore the effects of knowledge change speed. To analyze the validity of the research model and the hypotheses, the data are collected from 238 manufacturing firms through the administration of structured questionnaires. The results of structural equation model analyses indicate that the model is generally valid and 11 of 14 hypotheses are supported by the data. Reasons for and implications of these observed relationships are discussed.