Analyzing Supplier Development Criteria Using Interpretive Structural Modelling: A Case Study of a Retail Business
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Abstract
This article aimed to study 1) to identify the key factors contributing to supplier development, and 2) the relationships among those factors in the context of a retail business. The sample was seven employees from the merchandise and procurement department of the case‐study company. They were selected by purposive sampling. The instruments for collecting data were a questionnaire assessing the importance of supplier‐development factors and a paired‐comparison questionnaire evaluating the interrelationships among those factors. Data were analyzed by descriptive statistics and content analysis. The research results were found as follows: 1) Twelve key factors influencing supplier development were identified. 2) Market pressure and risk management were found to be the primary driving factors in supplier development. The most important end‐results of supplier development were product quality improvement and cost reduction. These insights can support strategic planning for sustainable supplier development.
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