Suppliers' involvement in development processes for highly innovative products

Abstract

Numerous researches have scrutinized the role of suppliers regarding product innovations made by original equipment manufacturers (OEMs). But until now, barely one supplier-involvement model published refers to the question as to whether the level to which suppliers are involved into the OEMs' product development processes has an impact on the products' level of innovation. To close this gap, this paper presents a model, illustrating which factors suppliers' involvement in development processes for highly innovative products depends on. One objective is to initiate a discussion, if and what kind of correlation exists between the level of supplier involvement, the point of time when suppliers are integrated, and the products' level of innovation. Furthermore, the paper has the intention to provide guidance for managers who have to decide, when and to which level, vertical cooperation can lead to successful results regarding the development of innovative products.