Supplier involvement in the fuzzy front end of new product development: An investigation of homophily, benevolence and market turbulence

Abstract

The fuzzy front end (FFE) of new product development (NPD), i.e. the phase preceding the formal product development, is characterized by ill-defined processes, ad-hoc decisions, equivocality and uncertainty. While involving suppliers in this early stage is crucial, limited insight exists on how to best accomplish this objective. We address this issue in the present research by focusing on two important characteristics of the buyer-supplier relationship: homophily and benevolence. Grounding our arguments in social exchange theory (SET), both dimensions are expected to be associated with a greater degree of supplier involvement. In addition, taking a contingency perspective, arguments are developed for the moderating role of market turbulence. These contentions are tested with project-level NPD data. The data provide support for the association of homophily with supplier involvement in the FFE, highlighting the relevance to consider “softer” supplier selection criteria for NPD success. While the link between benevolence and supplier involvement in the FFE was not supported, both moderation hypotheses were, providing insight into the dynamics underlying supplier involvement in the FFE of NPD. Overall, we advance theory by examining antecedents and contingencies that can foster supplier involvement in the FFE, an area left largely uninvestigated to date, and provide practical guidance for supply chain managers on how the involvement of suppliers in the FFE phase can be enhanced.