Abstract
Supplier performance evaluation and selection are two fundamental constituents of optimal
sourcing decision making and are the main contributing factors to an effective supply chain and most
importantly to the procurement process.
Based on the literature and management experience the present research established that current
evaluation criteria are intra‐organisational focused and give prominence to the use of supplier’s
strategic capabilities. Little or no consideration is given to the influence of the changing business
environment and the fact that there are many proposed evaluation criteria that exist today.
To close the gaps the research introduces the theory of dynamic capability as an intrinsic criterion
for supplier performance evaluation and also as the generic guideline to reduce the current multi
performance evaluation criteria. The proposed model will empower the procurement practitioner
with the criteria logic to identify the suppliers able to meet the demands of the changing business
environment.
This research is largely based on the literature and supply chain management experience to arrive at
the conceptual model. The future research should validate the conceptual model through survey and
case study research design methods to enable the conclusive generalisation of the results.
The research contributes by conceptualising the generic model for supplier performance evaluation
that combines supplier strategic capabilities and dynamic capability variables as the significant input
variables for optimal sourcing decision making.
The research also provides academics and the supply chain fraternity with enhanced knowledge of
the literature of dynamic capability variables as generic criteria for supplier performance evaluation.