Abstract
This chapter gives an overview of the concept of placing sub-supplier specific investments. Motivations of sub-supplier specific investments are discussed, and a classification of sub-suppliers is introduced. Interactions between the firm and the triad as well as the safeguarding of the firm’s investment are evaluated, and an overview of internal and external barriers to the execution of sub-supplier specific investments is given.
The whole chapter is a modified extract from Julia Burkhardt (2019). Sub-supplier management—developing lower-tier supplier through sub-supplier specific investments, Dissertation no. 4879, Difo-Druck, Untersiemau.
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Notes
- 1.
One common citation of performance measurement was developed by Neely, Gregory, and Platts (1995): “Performance measurement can be defined as the process of quantifying the efficiency and effectiveness of action.” A positive performance is also achieved if the highest possible output is generated through the lowest input of resources (Burkhardt 2018).
- 2.
Extracted from Burkhardt (2019).
- 3.
The whole case can be read in Norrman and Jansson (2004).
- 4.
The paragraph about Nestlé used information retrieved from sources that have been provided by Nestlé on their website: Nestlé in society. Creating Shared Value and meeting our commitments 2016. Full report, 2017 (https://www.nestle.com/asset-library/documents/library/documents/corporate_social_responsibility/nestle-in-society-summary-report-2016-en.pdf).
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Burkhardt, J. (2021). The Concept of Sub-supplier Specific Investments as a Development Tool. In: Stoelzle, W., Burkhardt, J. (eds) Sub-Supplier Management. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-030-75575-1_5
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