Relationship-specific factors influencing supplier involvement in customer new product development

Abstract

Many manufacturing firms are becoming involved in closer relationships with suppliers in order to utilize their skills, capabilities, and resources to develop new products faster and at a lower cost. However, effective supplier relationships do not just exist or emerge. This study advances and tests a relationship model that examines antecedents and central characteristics of close relationships and their impact on supplier involvement in customer new product development (NPD). The findings suggest that supplier involvement in NPD depends on trust and commitment of the supplier. Moreover, the study reveals that managers functioning as relationship promoters (RPs) in the customer's firm and supplier-specific adaptations of the customer have a positive influence on supplier involvement in NPD. The RPs and customer adaptations were found to have a strong effect on the supplier's trust and commitment. Some theoretical and managerial implications are discussed.