Analyzing the interaction of critical factors of supplier development using Interpretive Structural Modeling—an empirical study

摘要

In order to compete effectively in the global market, a company must have a network of competent suppliers. To create and maintain such a network and to improve various capabilities that are necessary for the buying organization to meet its increasing competitive challenges, the buying firms may engage in supplier development. To improve the supplier capabilities, the buying organizations have to consider various supplier development factors such as supplier base, communication with suppliers, direct involvement of suppliers, etc. Their significance and the role in supplier development process are also to be considered. These factors not only affect the supplier development process but also influence each other. However, the methodologies used in supplier development literature analyze the factors independently. This paper attempts to overcome the above, by analyzing the interrelationship between the supplier development factors. The Interpretive Structural Modeling (ISM) approach has employed to develop the structural relationship among supplier development factors and also tried to define the levels of different factors based on their driver/dependence power and their mutual relationships. Finally, the ISM result is compared with empirical study and a case study.