The impact of supplier development on buyer competitive advantage: A path analytic model

The impact of supplier development on buyer competitive advantage: A path analytic model

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Article ID: iaor201110602
Volume: 135
Issue: 1
Start Page Number: 353
End Page Number: 366
Publication Date: Jan 2012
Journal: International Journal of Production Economics
Authors: , , ,
Keywords: networks: path
Abstract:

As manufacturing firms increasingly realize that supplier performance is crucial to their establishing and maintaining competitive advantage, supplier development has been a subject of considerable research in supply chain management. We develop and test a path model to explore how supplier development practices affect buyer–supplier performance from the buying firm's perspective in the context of Hong Kong's electronics industry. The results show that top management, supplier evaluation, and supplier strategic objectives are significant determinants of transaction‐specific supplier development, and that buyers that have closer collaborative relationships with suppliers may strengthen their competitive advantage.

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