Reviewing and conceptualizing
supplier development
Sadaat Ali Yawar
Department of Marketing, Operations and Systems, Northumbria University,
Newcastle upon Tyne, UK, and
Stefan Seuring
Chair of Supply Chain Management, University of Kassel, Kassel, Germany
Abstract
Purpose – The literature on supplier development (SD) is mostly fragmented, and very little research offers
insights on the interrelations of the critical elements of SD. This research aims to evaluate the significance of SD
and reconceptualise it by identifying and linking the key constructs and items of SD.
Design/methodology/approach – A structured literature review of SD literature was performed, and it was
followed by conducting a contingency analysis of defined constructs and the items of SD. Applying a literature
review and contingency analysis allows assessing the degree to which core constructs and their operational
items are addressed in the SD literature.
Findings – Our findings show that a high degree of interrelations exists among enablers, relationships and
supplier development strategies (SDS), of which, only indirect SDS drives the performance outcomes. However,
interrelations between the individual items of the main categories of SD remain unexplored.
Research limitations/implications – The proposed revised framework reveals significant research gaps in
SD and calls for a thorough examination of the topic.
Originality/value – The key contribution of the paper is reconceptualising SD and contributing to the
theoretical development of SD.
Keywords Supplier development strategies (SDS), Direct and indirect SDS, Performance outcomes, Buyer–
supplier relationships
Paper type Literature review
1. Introduction
Managing buyer–supplier relationships is important in dealing with uncertainty and
disruption in supply chains (Friedl and Wagner, 2012; Routroy and Pradhan, 2013). One way
to deal with the risk of uncertainties is to improve the capabilities of the suppliers (Yawar and
Seuring, 2018). Buying firms engage in SD activities to build the capabilities of resource
scarce suppliers, and in doing so improve the supply chain competitiveness and
buyer-supplier performance (Jajja et al., 2016; Dalvi and Kant, 2018a, b). Supplier
development (SD) is defined as “any effort of a buying firm to increase the performance
and/or capabilities of the supplier and meet the buying firm’s short- and long-term supply
needs” (Krause and Ellram, 1997). Direct SD requires the commitment of resources by the
buying firm (Handfield et al., 2000), whereas indirect SD require nothing or only limited
resources. In both cases, the aim is to build stable and long-term relationships with the
suppliers, maintain a reliable supplier base and simultaneously improve the supply chain
performance (Quayle, 2002; Kannan et al., 2010; Wagner, 2010; Busse et al., 2016). By now,
various product and service-based industries are shown to use SD as a buying firm initiative
to build a dedicated supplier base to improve their supply chain performance (Wagner, 2006a,
b; Krause et al., 2007, Sancha et al., 2015; Yawar and Seuring, 2018).
In the recent years, SD has attracted considerable attention from practitioners and
researchers due to its potential applications in managing supply chains. However, previous
research in SD is dominated by empiricism, and therefore the conceptual and theoretical
development of SD has remained abstract. Some studies (Glock et al., 2017; Noshad and
Reviewing and
conceptualizing
supplier
development
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1463-5771.htm
Received 14 January 2020
Revised 28 May 2020
Accepted 5 July 2020
Benchmarking: An International
Journal
© Emerald Publishing Limited
1463-5771
DOI 10.1108/BIJ-01-2020-0018