Analyzing supplier development criteria for an automobile industry

Purpose The purpose of this paper is to present an approach to identify and rank the criteria used for the supplier development using interpretative structural modeling (ISM). Design/methodology/approach The paper develops a framework to analyze the interactions among the criteria such as competitive pressure, evaluation and certification system, incentives, supplier development programs, inter‐organizational communication, buyer‐supplier relationship, supplier commitment, supplier performance, asset specificity, joint action, trust, long‐term strategic goals, top management support, purchasing performance, and supplier strategic objective for the supplier development using ISM. The developed framework is illustrated using a case study taken in an automobile firm. Findings The paper contributes to research in supply chain management (SCM) and particularly in supplier development. Research in the area of SCM has intensified in recent years for a number of reasons. Managers have now realized that actions taken by one member of the chain can influence the responsiveness, efficiency and profitability of the complete supply chain. Firms are increasingly thinking in terms of competing as part of a supply chain against other supply chains, rather than as a single firm against other individual firms. Research limitations/implications Since the proposed framework is applied for only a single company, further studies can be done using the same framework for several companies in India. This will provide a better understanding of how the variables that influence supplier development are affected in different types of industry. Practical implications Managers can use the proposed framework to develop better relationships with suppliers and to create management responses that influence and improve their relationships with them. Originality/value This paper uses 15 criteria to propose a framework for the supplier development and also finds the interactions between the criteria which influence the most and the least to improve the relationship with the suppliers.