Abstract:
The purpose of the research was to attain an understanding of how a formalised Supplier
Development program can result in sustainable performance for SMME suppliers.
Sustainable performance was evaluated based on the triple bottom line environmental,
social and economic sustainability framework. A mono methodology of qualitative
research was followed to gather data. Semi-structured interviews were conducted with
Suppliers forming part of a supplier development program within a buying firm, and data
attained was triangulated with interviews of supplier development executives tasked with
the implementation and execution of SD programs. The research found that supplier
development through its different initiatives enables the sustainable performance of
SMME suppliers. It was found that initiatives such as the implementation of a regulatory
framework to enforce compliance with environmental and safety protocols were
successful. Environmental sustainability was also enhanced through recycling and the
separation of waste management procedures.
Furthermore, the adoption of green and renewable energy, as influenced by the just
transition program and the digitalisation of business processes, which took shape post
the COVID-19 pandemic, has positively impacted environmental sustainability adoption.
It was found that the social aspect of sustainability for suppliers was enhanced through
programs of localisation, local training and development of SMME and various employee
wellness programs. Economic sustainability is one of the major focuses for most SMME
suppliers and was extensively supported through different funding mechanisms, market
access programs and operational efficiency measures driven by third-party contributors
such as the South African Institute of Chartered Accountants (SAICA) and the Gordon
Institute of Business Science (GIBS). Furthermore, a number of initiatives that cut across
the three dimensions of sustainable performance were found, including continuous
monitoring and evaluation of suppliers, the different training interventions and the
creation of an SMME ecosystem that brings multi-dimensional stakeholders to develop
suppliers' capability throughout the program. Overall, extensive evidence supports that
supplier development programs enable the sustainable performance of suppliers.
