Supplier Development: Insights from the Literature and Relevance to the Upstream Petroleum Industry in Nigeria

Supplier development is increasingly recognised as a strategic element of supplier management, particularly in industries where buying firms depend on capable external vendors for operational performance. This paper reviews the literature on supplier development and considers its relevance to Nigeria’s upstream petroleum industry. It synthesises existing research on direct and indirect supplier development practices, their underlying governance mechanisms, and their implications for supplier capability and performance. The review shows that supplier development is most effectively understood not as a narrow procurement tool, but as a relational, cross-functional, and capability-building process. It also identifies important gaps in the literature, including the disconnect between analytical models and industry practice, the persistence of transactional procurement approaches, and the limited attention given to long-term supplier capability development in institutionally complex settings. By connecting these insights to the Nigerian upstream petroleum context, the paper highlights the managerial importance of relational governance, knowledge transfer, and strategic supplier engagement. The study concludes with implications for supplier relationship management research and for managers seeking to strengthen supplier performance in complex and high-risk supply chains.