Daniel R.Krause is an assistant professor in the Department of Supply Chain Mangement, College of Business, Arizona State University. Before joining the faculty at At Arizona State, he was an assistant professor at Utah State University and Michigan State University.He holds a PhD and MBA from Arizona State University.Dr. Krause's research interests focus on interests focus on in interorzanizational relationships, the role of the purchasing function in fulfilling the firm, s strategy, and supplier development. His publications have appeared in several journals, including the Journal of Operations Management, International Journal of Production Research, International Journal of Logistics Management and Sloon Management Reviews
A Structural Analysis of the Effectiveness of Buying Firms' Strategies to Improve Supplier Performance
Article first published online: 7 JUN 2007
Volume 31, Issue 1, pages 33–55, March 2000
How to Cite
Krause, D. R., Scannell, T. V. and Calantone, R. J. (2000), A Structural Analysis of the Effectiveness of Buying Firms' Strategies to Improve Supplier Performance. Decision Sciences, 31: 33–55. doi: 10.1111/j.1540-5915.2000.tb00923.x
Thomas V.Scannell is an assistant professor of management at Western Michigan University. He received his PhD in operations and sourcing management from Western State University, and his MBA and BS in electrical engineering from Western Michigan University. His research and teaching interests are in operations, supply chain, and technology management, with a specific emphasis on advanced manufacturing technology selection and utilization, technology transfer, insourcing/outsourcing decisions, supplier integration into new product development, and supplier development, and supplier development. He has over ten years of industry experience in manufacturing engineering, electronics design, systems engineering, and project/program management. His work has appeared in Journal of Prodcut Innovation Management, Journal of Operations Management, Slaan Management Review(forthcoming), and many conference proceedings.
Roger Calantone is the Eli Broad Professor of Marketing and Product Innovation at the Eli Broad Graduate School of Management, Michigan State UNiversity of Massachusetts, Amberst, in 1976. He has done research primarily on industrial new products, market segmentation, and quantitative methods in markeing.
- Issue published online: 7 JUN 2007
- Article first published online: 7 JUN 2007
- Received: April 13, 1998. Accepted: March 9, 1999
- Materials Management;
- Structural Equation Models;
- and Supply Chain Management
Many manufacturing firms have increased the amount of component parts and services they outsource, while refocusing on their core capabilities. Outsourcing parts and services to independent, external suppliers means that suppliers' performance is increasingly critical to the long-term success of these buying firms. Buying firms are increasingly using disparate supplier development strategies to improve supplier performance including supplier assessment, providing incentives for improved performance, instigating competition among suppliers, and direct involvement of the buying firm's personnel with suppliers through activities such as training of suppliers' personnel. Using resource-based theory, internalization theory, and structural equation modeling, we examine the impact of these supplier development strategies on performance. We conclude that direct involvement activities, where the buying firm internalizes a significant amount of the supplier development effort, play a critical role in performance improvement.