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

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  • Li, Wenli
  • Humphreys, Paul K.
  • Yeung, Andy C.L.
  • Cheng, T.C.E.

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.

Suggested Citation

  • Li, Wenli & Humphreys, Paul K. & Yeung, Andy C.L. & Cheng, T.C.E., 2012. "The impact of supplier development on buyer competitive advantage: A path analytic model," International Journal of Production Economics, Elsevier, vol. 135(1), pages 353-366.
    • Handle: RePEc:eee:proeco:v:135:y:2012:i:1:p:353-366
    DOI: 10.1016/j.ijpe.2011.06.019
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    Cited by:

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    2. Sina Golara & Kevin J. Dooley & Nasim Mousavi, 2021. "Are Dealers Still Relevant? How Dealer Service Quality Impacts Manufacturer Success," Production and Operations Management, Production and Operations Management Society, vol. 30(10), pages 3560-3578, October.
    3. Sreedevi, R. & Saranga, Haritha, 2017. "Uncertainty and supply chain risk: The moderating role of supply chain flexibility in risk mitigation," International Journal of Production Economics, Elsevier, vol. 193(C), pages 332-342.
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    5. Lees, Nic & Nuthall, Peter & Wilson, Mark M.J., 2020. "Relationship quality and supplier performance in food supply chains," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(3), August.
    6. Leinan Zhang & Qingyan Zeng & Silin Zhang & Shuqin Li & Liang Wang, 2022. "Transaction-Specific Investment and Organizational Performance: A Meta-Analysis," Sustainability, MDPI, vol. 14(9), pages 1-18, April.
    7. Chunguang Bai & Joseph Sarkis, 2016. "Supplier development investment strategies: a game theoretic evaluation," Annals of Operations Research, Springer, vol. 240(2), pages 583-615, May.
    8. Mu-Chen Chen & Kuo-Chien Chang & Chia-Lin Hsu & German Alcibiades Vega Leon, 2018. "Investigating the impacts of guanxi and relationship marketing in port logistics: two cases," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(4), pages 603-623, December.
    9. Bhattacharya, Ananya & Singh, Prakash J. & Nand, Alka Ashwini, 2015. "Antecedents of buyer opportunistic behavior in outsourcing relationships," International Journal of Production Economics, Elsevier, vol. 166(C), pages 258-268.
    10. Carlos M. Jardon & Xavier Martinez-Cobas, 2022. "Leadership and Marketing Capabilities in Small Businesses of Subsistence Marketplaces," SAGE Open, , vol. 12(2), pages 21582440221, April.
    11. Resende, Carlos Henrique Lopes & Lima-Junior, Francisco Rodrigues & Carpinetti, Luiz Cesar Ribeiro, 2023. "Decision-making models for formulating and evaluating supplier development programs: A state-of-the-art review and research paths," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 180(C).
    12. Yeung, Kwong & Lee, Peter K.C. & Yeung, Andy C.L. & Cheng, T.C.E., 2013. "Supplier partnership and cost performance: The moderating roles of specific investments and environmental uncertainty," International Journal of Production Economics, Elsevier, vol. 144(2), pages 546-559.
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    14. Ricky Y.K. Chan & Katherine H.Y. Ma, 2021. "How and when environmental orientation drives corporate sustainable development in a cross‐national buyer–supplier dyad," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 109-121, January.
    15. Gukseong Lee, 2022. "Matching Task Complexity With Supplier Management to Enhance Outsourcing Performance," SAGE Open, , vol. 12(3), pages 21582440221, September.
    16. Saghiri, Soroosh & Wilding, Richard, 2021. "On the effectiveness of supplier development programs: The role of supply-side moderators," Technovation, Elsevier, vol. 103(C).
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    21. Gressgård, Leif Jarle & Hansen, Kåre, 2015. "Knowledge exchange and learning from failures in distributed environments: The role of contractor relationship management and work characteristics," Reliability Engineering and System Safety, Elsevier, vol. 133(C), pages 167-175.

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