Attaining world-class R&D by benchmarking buyer–supplier relationships

Abstract

The research and development (R&D) function has become fundamental particularly for companies acting in the high-tech industry sector. It is largely agreed that because of the severe competition, world-class R&D performance can no longer be achieved by a company on its own. Nowadays, meeting customer requirements increasingly needs R&D collaboration in buyer–supplier relationships. The aim of this study is to provide managers a well-defined method by which they will be more capable to improve R&D collaboration with their suppliers. Benchmarking for best practices was first implemented by Xerox in 1979. Since then benchmarking has been applied in several areas by numerous researchers. However, in developing R&D in buyer–supplier relationships, benchmarking applications have been scarce. A case study in Finnish high-tech industry has been conducted in order to apply the benchmarking process in buyer–supplier relationships with the emphasis on R&D development. A case study research expands understanding on the success factors, barriers and potential that the benchmarking method in developing R&D performance in buyer–supplier relationships may reveal.