Selected Studies, Based On The Control Of The Supplier Management Contract Way

The paper discusses how to choose the type of contract in the suppliers' management of the firm. Firstly, after thoroughly review of the theoretical development in academic field, the paper makes a brief summary and focuses its attention on the Contract Theory discussing the 3 type of contract on the basis of tracing back the source of suppliers. Secondly, combining the Contract Theory, Resource Theory and Suppliers' Management Theory, the paper analyses the choice of contract setting the control of suppliers as the center. Thirdly, the paper discusses 8 factors influencing the choice of contract, forming a theoretic analyzing frame, which is (1) the supply and demand of the product, (2) the price rate of the product, (3) the quality of the product, (4) specialty of the product, (5) the service standard of the supplier, (6) the conformity ability of the firm, (7) the human resource of the firm. Fourthly, the paper sorts the 8 factors into 2 grades, one is the importance of supplier's resource, and the other is the ability of the firm, establishing a decision-making model of choosing contract type in suppliers' management and raising several theoretical hypotheses. Then, the paper tests the raised analysis frame and the decision model by using the available data. The result confirms the hypotheses to a certain extent. Finally, the paper discusses the drawbacks of the empirical work and its possible development in the future.