Five-step Research Method

In order to understand how supplier development is subsumed under the KM perspective,

I use a five-step method. First, I conduct an extensive literature search for journal articles

that study at least one supplier development activity. Second, I collect a large number of

supplier development activities explicitly described in the search results. Third, the set of

candidate activities is shortened by eliminating duplicates and consolidating items having

the same emphasis, but explained with different phrasings. Fourth, consolidated

candidate activities are further clustered into distinct activity types, each of which is

given a brief description, yielding an extensive catalog of supplier development activities.

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Fifth, I investigate whether and how each activity type matches with one or multiple

knowledge chain activities.

I begin by identifying SD articles that serve as the basis for our analysis. The intent of

this phase is to assemble articles that collectively cover the wide variety of SD

perspectives. To guide this identification of relevant research articles, I employ several

search criteria. In particular, I consider only those articles that were recently published in

refereed academic journals and that directly address at least one SD activity in a concrete

fashion. To emphasize real-world relevance, I limit the analysis to include empirical

studies only, because their data come from surveys or interviews of practitioners.

Accordingly, I omit abstract, modeling, or conceptual SD studies from our analysis.

The article-identification phase yields 92 articles published between 1996 and 2010,

for an average of six articles per year. The reason I use 1996 as a starting point is that the

broad perspective of supplier development raised by Hahn et al. (1990) and Watts and

Hahn (1993) has been generally used since that year. Another consideration is that the

number of empirical SD studies has been increasing since 1996. I believe that a 15-year

window is sufficient for collecting a set of diverse SD activities.

I find that both quantitative and qualitative research approaches have been used to

study supplier development phenomena. Further, I find that supplier development research adopts a buyer’s perspective, a supplier’s perspective, or both. Moreover,

relevant articles appear in a variety of journals. Unsurprisingly, most articles come from

journals devoted to supply chain management, but they also come from many journals

devoted to the reference discipline of operations management (most notably, the Journal

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reference disciplines, such as strategy, and in multi-disciplinary journals (e.g., Decision

Sciences). In addition, authors of the 92 articles represent diverse countries and their data

(via survey or interview) cover various industries and countries. Together, these traits

suggest that the sample of articles encompass a wide range of perspectives.

The intent of the collection phase is to assemble a relative comprehensive set of SD

activities. For each sample article, the SD activities being studied are identified as

follows. For survey-based studies, the activity candidates are drawn mainly from their

respective questionnaire instruments. For other studies, SD activities are drawn mainly from the articles’ finding and discussion sections. In any case, each article is carefully

examined to ensure that all SD activities studied are identified. Most articles yield several

SD activities. During this phase, I make each activity candidate as specific as possible.

Most candidates drawn from sample articles referred to only one specific activity. In a

few cases, which include multiple emphases in their descriptions, the candidate is divided into multiple activities. For instance, “evaluate suppliers’ operation and provide feedback

to help them to improve” (Carr and Kaynak, 2007) is coded as two activities: “evaluate

suppliers’ operation” and “provide feedback to help suppliers to improve.” The collection

phase yields a set of 565 SD activities, which were saved in an MS Excel worksheet,

along with the sample article where they originate. On average, each article mentions

6.14 SD activities.

The intent of the consolidation phase is to make the set of SD activities as

parsimonious as possible. I first eliminate duplicate activities. This greatly shortens the

list of SD activities, indicating that many studies study the same SD activity, albeit in

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different phrasing, are consolidated into a single activity reflecting that emphasis. For instance, “formal assessment of supplier’s performance” and “formal, periodic written

evaluation of suppliers’ performance” are consolidated into a single SD activity “formal

evaluation of supplier’s performance.” Upon completion of the consolidation phase, over

100 of candidate activities remain. In order to generate a more concise codebook, the set

of activities is further consolidated by conducting a “conceptual factor analysis” that

clusters remaining activities with similar purposes into a single activity type. For instance, the activities of formal evaluation of supplier’s performance, informal supplier

evaluation, evaluating supplier’s capabilities, and supplier audit are not the same activity

with different phrasings. However, because these activities are interpreted as having the same pattern or purpose, they are clustered into the activity type “supplier evaluation”.

Out of the over 100 consolidated activities, such clustering yields 30 distinct activity

types.

I assign a brief name and description to each resultant activity type, yielding a

complete taxonomy of SD activities. In order to check whether our consolidation and

clustering are reliable, I recruit an MBA student to code the original list of activities into

30 activity types based on the codebook. The inter-coding agreement is extremely high,

with the few disagreements being resolved by discussion. The intent of final phase is to

bring order to the 30 activity types by determining whether and how each activity type

fits into the knowledge chain theory. During this phase, I refer to typologies of first-order

and second-order activities developed by Holsapple and Jones (2004, 2005) and the

codebook. Interestingly, most SD activity types directly fit into KCT. Instances of

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mapped into at least one knowledge chain activity. The next section presents findings

from the final two phases.