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Due to lack of commitment buyers frequently switched suppliers. Other buyers consider that the use of long-term contracts of three to five years effectively demonstrates commitment. While long-term contracts may be evidence of a long-term perspective, but commitment cannot be sustained without undertaking genuine risks. Supplier development involves risk for both the buying firm and the supplier, in that both must be willing to invest resources and time in dedicated assets for pay-offs that may only occur over a relatively long time period (Krause & Ellram, Critical elements of supplier development, 1997). Therefore following hypotheses are proposed:

Supplier recognition plays a positive role in commitment of suppliers.

Supplier recognition in form of long term contracts plays a positive role in success of supplier development.

Commitment of suppliers plays a positive role in success of supplier development process.

Poor communication is principal barrier in effective supplier-buyer relationship (Lascelles & Dale, 1989) (Krause & Ellram, Critical elements of supplier development, 1997). Communication formality established between buying firm and supplier positively influences the supplier development process (Prahinski & Benton, 2004) and poor communication can defeat the supplier development process (Krause & Ellram, Success factors in supplier development, 1997). Thus, the following hypothesis is proposed:

Enhanced communication plays a positive role in success of supplier development process.

Hypothesized model

With help of the interviews with respondents, findings from the precedent literature study explained in the previous chapter and in this chapter can be recapitulated in the model illustrated in Figure 1. This model is summarized to explain how critical factors affect the outcome of supplier development project.

chapter 4

research methodology

This chapter will discuss the research methodology used in this study. In order to prove the hypothesis defined in earlier chapter, it was decided to obtain the universal understanding of success factors of supplier development and the survey seemed to be most appropriate research method. In the survey the focus was on following aspects: Strategic process, supplier commitment, upper management involvement, communication, long term commitment/rewards and success of supplier development program. Once the quantitative data was collected, statistical tests were performed to test the hypothesis and check the correlation between different factors. Following sections will describe research approach to gather data, survey design, population sampling, survey instrument and instrument's reliability and validity.

Survey Design

The survey design consist of following steps: literature survey for previous similar kind of research, constructing instrument, validate the instrument, pilot testing the instrument and本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。