Abstract
We study the relationship between supplier involvement in new product development and performance. The current literature is scattered and fragmented with studies reporting mixed empirical evidence for a variety of concepts related to “Early Supplier Involvement.” We conduct a systematic review and meta‐analysis of the existing literature to reconcile conflicted findings, revise and refine theoretical perspectives, and provide evidence‐based scholarly and practical implications. To achieve these aims, we unravel the general relationship by considering three factors. First, we delineate different types of performance outcomes, mainly related to NPD efficiency (e.g., speed) and NPD effectiveness (e.g., product quality). Second, we distinguish between the moment and the extent of supplier involvement, related to different theoretical perspectives on external knowledge integration. Third, we disentangle multiple levels of analysis that are seemingly obscured in the literature, specifically the project and organizational levels. We find that extensive supplier involvement has positive effects on NPD efficiency and effectiveness, whereas earlier supplier involvement only to some degree affects NPD efficiency and not effectiveness. In conclusion, our meta‐analysis based on 11,420 observations from 51 studies provides strong theoretical and practical insights on the important phenomenon of supplier involvement.
Highlights
Developing new products has increasingly become an inter-organizational activity, with focal firms seeking collaboration with external sources of knowledge, such as suppliers, to enhance their knowledge base and extend their development capabilities (Hoegl and Wagner 2005; Johnsen 2009; Un, Cuervo-Cazurra, and Asakawa 2010)
We find that extensive supplier involvement has positive effects on new product development (NPD) efficiency and effectiveness, whereas earlier supplier involvement only to some degree affects NPD efficiency and not effectiveness
The overall purpose of this paper is to examine the impact of supplier involvement in New Product Development on (NPD) performance
Summary
Developing new products has increasingly become an inter-organizational activity, with focal firms seeking collaboration with external sources of knowledge, such as suppliers, to enhance their knowledge base and extend their development capabilities (Hoegl and Wagner 2005; Johnsen 2009; Un, Cuervo-Cazurra, and Asakawa 2010). Boeing started a collaboration with car seat manufacturer Adient to develop and manufacture seats to cut delays in aircraft delivery times (Hepher 2018) This practice of integrating upstream supply chain partners in product development has become known as ‘Early Supplier Involvement’: the participation of suppliers in their customer’s new product development (NPD) projects (Handfield et al 1999; Monczka et al 2000). The lack of consensus in the literature warrants a structured review and meta-analysis of the prior empirical literature on the relationship between supplier involvement and NPD performance. In conducting such a review, we consider three factors
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