The Impact of Supplier Development on Supplier Capability and Performance

Based on the literature analysis of supplier development, 200 companies in China are used as the research object for study the relationship among supplier development, supplier capability and supplier performance. Seven activities belong to three kinds of development activities are proved by factor analysis in this paper. The three kinds of development activities are advanced supplier development, moderate supplier development and basic supplier development. The empirical results showed that the three kinds of supplier development activities are significantly positive correlation to supplier capability and performance; supplier development has indirectly effect on supplier performance through supplier capability. The results of this paper may establish a theoretical foundation for domestic supplier development research, and also may give some theory guidance to the supplier development activities of domestic corporations.