Abstract:
This research aims to 1) to identify key factors influencing supplier development and 2) analyse the structural relationships among those factors within the context of the retail industry. A mixed-methods approach combining both qualitative and quantitative techniques was employed. The Interpretive Structural Modelling (ISM) methodology was applied to a case study of a lifestyle retail business. The sample consisted of seven procurement and merchandise department employees with no less than five years of experience in sourcing and supplier management. Purposive sampling was used. The instruments for collecting data were 1) a questionnaire assessing the importance of supplier‐development factors 2) a paired‐comparison questionnaire evaluating the interrelationships among those factors. The results identified twelve critical factors influencing supplier-development, supplier evaluation, supplier selection, product quality, cost reduction, market pressure, long-term collaboration, product development, commitment to collaboration, communication enhancement, trust-building, production planning, and risk management. ISM-based structural analysis revealed that market pressure and risk management serve as primary driving factors, forming the foundation for strategic supplier selection, collaboration, trust, and production planning emerged as linkage factors that connect and reinforce the system. These, in turn, influence the dependent factors as product quality, cost reduction, and new product development. The study proposes a supplier development roadmap consisting of short term, medium term, and long-term strategies. In the short term, efforts should focus non supplier evaluation and selection. The medium term should emphasize building collaboration, trust, and production planning. In the long term, the focus should shift to enhancing product quality to sustain competitive advantage in a rapidly evolving market environment.