The Impact of Supplier Development on Supplier Performance: the Role of Buyer-Supplier Commitment, Thailand

Abstract

The objective of this research is to investigate the role of buyer-supplier commitment in supplier performance improvement. This study develops the buyer-supplier commitment based on two dimensions of buyer-supplier relationships and transaction-specific investment that should exist between the two parties. The paper collected data of 174 electrical products and components manufacturers in Thailand and tested relationships by using Structural Equation Modeling (SEM). The findings of this study revealed that the buyer-supplier commitment in dimensions of buyer-supplier relationship played a critical role in supplier performance improvements both directly and indirectly.

Keywords: Supplier development, Supplier performance improvements, Buyer-supplier commitment, Structural equation modeling