Enhancing Supplier Development: An Efficiency Perspective

This research identifies the factors that contribute to the buyer's efficiency in utilizing supplier development practices for their supplier's performance. Prior studies support the notion that supplier development practices improve supplier performance; however, very few studies focus on the factors that could improve a buyer's supplier development efficiency. Using a survey sample of 261 manufacturing plants from 11 countries, this study shows that relational norms and information sharing affect supplier development efficiency. Furthermore, information sharing by suppliers is more effective than information sharing by buyers in terms of efficiency enhancement.