Supplier development programs and firm performance: evidence from Chile

Irani Arraiz, Francisca Henríquez () and Rodolfo Stucchi

Small Business Economics, 2013, vol. 41, issue 1, 277-293

Abstract: This paper evaluates the impact of the Chilean Supplier Development Program, aimed at improving and stabilizing the commercial linkages between small and medium-sized suppliers and their large firm customers, during the period 2003–2008. We use the panel structure of our dataset to control for observables and time-invariant unobservable factors that affect the participation and performance of firms. We find that both small and medium enterprises and large firms benefited from the coordination efforts. The program increased sales, employment, and the sustainability of small and medium-sized suppliers; it also increased the sales of large firms and raised their ability to become exporters. In addition, we find that the timing of the effect is different for suppliers and large firms. While the effect on suppliers appeared 1 year after the firms enrolled in the program, the effect on large firms took 2 years to appear. Copyright Springer Science+Business Media, LLC. 2013

Keywords: Supplier Development Program (Programa de Desarrollo de Proveedores; PDP); Small and medium enterprise (SME) policy; Impact evaluation; Chile; D04; D78; L38; L26 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:sbusec:v:41:y:2013:i:1:p:277-293

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DOI: 10.1007/s11187-012-9428-x

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