Exploring the impact of university-driven supplier development interventions on supplier performance: a case of the garment industry

PurposeThe purpose of this study is to investigate the effectiveness of university-driven knowledge transfer initiatives in enhancing the capabilities and performance of local suppliers in the garment industry. By focusing on the impact of UDIs in Myanmar, this research aims to provide empirical evidence on how these initiatives can foster supplier development and performance improvement through targeted capability enhancement strategies.Design/methodology/approachThis study utilizes a combination of surveys and an experimental design to evaluate the impact of university-driven supplier development interventions (UDIs) based on Lean principles in Myanmar’s garment industry. Nine garment suppliers were assessed before and after the UDI program. The research employed partial least squares structural equation modeling (PLS-SEM) to analyze the direct, indirect and mediating effects of UDIs on supplier performance, focusing on the role of supplier capability enhancement as a mediating factor.FindingsThe study found that the UDI program significantly improved supplier capabilities, which in turn led to enhanced performance. The analysis revealed partial mediation, indicating that while UDIs directly impact supplier performance, their effect is significantly amplified through the enhancement of supplier capabilities. These findings highlight the critical role of targeted capability development in achieving substantial performance improvements among local suppliers.Originality/valueThis research contributes to the literature by providing empirical evidence on the effectiveness of university-driven supplier development initiatives in a developing country context. It validates the indirect role of UDIs in boosting supplier performance via capability enhancement, emphasizing the importance of industry-specific and capability-focused development strategies. The findings underscore the value of structured knowledge transfer programs in supporting local suppliers, offering practical insights for policymakers and educational institutions aiming to enhance industrial performance through strategic interventions.