Expanding the Knowledge Capability of Suppliers through Supplier Development Programs

As firms increasingly outsource to focus on their core competencies, effective supplier development has become a major strategic decision in order to maintain a network of competent suppliers. Supplier development can be seen as a capability-enhancing activity that an organization undertakes to improve its suppliers' performance. This study conceptualizes supplier development as a knowledge-intensive and collaborative program, and explores how knowledge creation processes can be facilitated through different supplier development activities. A qualitative inquiry with a thematic analysis that focuses on five companies that are the suppliers of the largest motorcycle firm in Taiwan is presented in order to identify how different supplier development activities facilitate the knowledge creation process through the SECI modes and ba. The results show that these supplier development activities facilitate different types of knowledge conversion processes that can expand the knowledge capability of suppliers in a so-called center-satellite supply chain.