Vendor Development Process: An Empirical Study

Authors

  • Dr. R. K. Kushwaha, Shyam Sunder Parashar Hem Singh, Priyanka Bharti ASSISTANT PROFESSOR FACULTY OF MANAGEMENT SURAJMAL COLLEGE OF ENGINEERING & MANAGEMENT KICHHA MANAGER (VENDOR DEVELOPMENT) TATA MOTORS LTD. RUDRAPUR (UTTARAKHAND) INDIA ASSISTANT PROFESSOR FACULTY OF MANAGEMENT SURAJMAL COLLEGE OF ENGINEERING & MANAGEMENT KICHHA HR EXECUTIVE SHIVANI LOCKS PVT. LTD RUDRAPUR (UTTARAKHAND) INDIA

Keywords:

Buyers, Vendors relations, Sidcul Industries, Indian Industries.

Abstract

Purpose – Seeks to provide a more differentiated view of vendor development process and activities currently applied by SIDCUL Industries in Rudrapur, India.

Design/methodology/approach – An empirical study was conducted based on a review of previously published research on vendor development and case studies with 20 SIDCUL industries in Rudrapur, India. The survey responses from 100 industries were factor-analyzed to explore various dimensions of vendor development and their interrelationships. Furthermore, an industry-level analysis was performed.

Findings – SIDCUL Industries are reluctant to develop vendors. Two dimensions of direct and four dimensions of indirect vendor’s development were observed. Providing human and capital support to vendors (i.e. two dimensions of direct vendors development) is strongly related to formal vendors evaluation, structures and processes for evaluating vendors as well as communication (i.e. three dimensions of indirect vendors development).

Research limitations/implications – Future studies should incorporate the perspective of the vendors industries, include small and medium-sized enterprises, and approach pressing questions related to performance implications for the buying firm and sharing of the benefits achieved in vendor’s development activities.

Practical implications – SIDCUL Industries can compare their approach towards various vendor development practices with the approach taken by a representative sample and their industry as a whole.

Originality/value – This research paper conducts new research in an Indian setting. Furthermore, a novel industry-level view is presented.

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Published

2015-12-31

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Vol. 5 No. 1 (2015): DECEMBER 2015

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