۱- Introduction

۲- Theory and literature review

۳- Research model and hypotheses

۴- Method

۵- Results

۶- Discussion

۷- Theoretical, research and managerial implications

۸- Limitations and future research

References

Abstract

The primary purpose of this study is to find out if supplier development can serve as a means for buying firms to actively increase supplier satisfaction and eventually predict relationship continuity. Supplier relationships provide an essential means for buying firms to access and leverage supplier resources. One way in which buying firms influence the supply management process is through supplier development. The findings show that supplier development is an important means by which buying firms can increase supplier satisfaction. Supplier development significantly predicts the future of business relationships. Further analysis based on polynomial regressions provides evidence to show how congruence or discrepancy between economic and non-economic satisfaction impact continuance.

Introduction

Research into the phenomenon of resource mobilisation has become topical. However, the extant literature has provided only limited insights into supplier resource mobilisation processes and the way in which buying firms can influence this process through supply management efforts (Ellegaard et al., 2017). Supplier relationships are important vehicles through which buying firms access and leverage supplier resources. Supplier resource mobilisation can be influenced by the supply management efforts of the buying firm (Dyer and Hatch, 2006; Ellegaard and Koch, 2012) through supplier development initiatives/ interventions to help improve the performance of suppliers (Nagati and Rebolledo, 2013). Supplier development is defined as a “… long-term cooperative effort between a buying firm and its suppliers to upgrade the suppliers’ technical, quality, delivery, and cost capabilities and to foster ongoing improvements” (Watts and Hahn, 1993, p. 12). In other words, supplier development involves “any effort of a buying firm with its suppliers to increase the performance and capabilities of the supplier and meet the buying firm’s supply needs” (Krause and Ellram, 1997, p. 21). Consequently, resource mobilisation is very important, as it provides many benefits such as being a preferred customer, customer attractiveness, most valued customer, attractive business partner (Bemelmans et al., 2015; Ellegaard et al., 2003; Pulles et al., 2016; Schiele et al., 2012) among other advantages. Supplier satisfaction is central to this, but, while we know that it is important to be a preferred customer and that supplier satisfaction is pivotal to this, we know very little about how to achieve supplier satisfaction. The purchasing literature is silent on what firms can actively do to achieve increased supplier satisfaction, better resource mobilisation and ultimately continue the relationship with the supplier, this therefore presents a gap in our understanding. Perhaps, supplier development is a key to supplier satisfaction and could eventually predict relationship continuation. Interestingly, Ghijsen et al. (2010), who highlight supplier development to increase satisfaction, only find capital-specific, but not human centred supplier development to support supplier satisfaction. On the other hand, Schiele et al. (2012) argues that supplier development is only worthwhile for existing, preferred customers who have already achieved supplier satisfaction. This study investigates resource mobilisation between small to micro-entrepreneurial suppliers and lead firms in a developing country to address the following research questions: • RQ1: In what ways do supplier development, and performance influence satisfaction? • RQ2: Is supplier development key to supplier satisfaction and eventually a predictor of relationship continuation? • RQ3: Can supplier development serve as a means for buying firms to actively increase supplier satisfaction? Thus, we offer empirical insights on resource mobilisation from the suppliers’ perspective which has to date largely been unexplored (Carr et al., 2008; Ellegaard et al., 2017; Nagati and Rebolledo, 2013).