Level Of Supplier Involvement Research Articles

Managing glitches in collaborative product development with suppliers

PurposeThis paper aims to propose that knowing in practice can be used as a mechanism to enhance social exchange in collaborative new product development (NPD) with suppliers to reduce glitches. Practic00es of inter-organizational knowing should consider the levels of supplier involvement adopted.Design/methodology/approachThis paper studies two opposite situations of supplier involvement in NPD projects, namely, white and black box configurations. This paper adopts a qualitative comparative analysis method to identify necessary and sufficient configurations of knowing in practice in 36 projects from 3 different companies.FindingsSocial exchange is important even when the NPD collaboration is based on contractual relationships as in white and grey box collaborations. There are different combinations of practices for inter-organizational knowing that can limit glitches in each supplier configuration. This paper proposes a theoretical model that explains these relationships and contributions to the reduction of glitches.Originality/valueThis paper combines social exchange theory with knowing in practice in the supplier involvement context. The theoretical model contributes to the understanding of knowing in practice in white and black box configurations.

Relational resources, tacit knowledge integration capability, and business performance

PurposeThis study aims to investigate how relational resources, such as the buyer’s trust in its suppliers and the level of supplier involvement, affect the level of tacit knowledge integration capabilities (TKICs) of the firm, which, in turn, is hypothesized to affect business performance.Design/methodology/approachBased on the dynamic capabilities theory and the relational view, this paper examines how TKIC, a special case of dynamic capability, influences business performance. The research context is the Brazilian automobile industry, in which firms are currently experimenting with modular production and increasing their interactions with suppliers. Using a sample of automobile suppliers, this investigates how relational resources, such as the buyer’s trust in its suppliers and the level of supplier involvement, affect the level of TKIC, which, in turn, is hypothesized to affect business performance. In addition, this paper examines the moderating effect of various communication media on the TKIC-business performance relationship. The findings confirm the importance of relational resources and TKIC on business performance. Finally, this paper explores various theoretical and managerial implications to encourage future research.FindingsThe results suggested that the two relational resources (supplier involvement and buyer’s trust) are important drivers of TKICs and that the level of supplier involvement in the production process mediates the relationship between buyer’s trust and TKIC. Moreover, this study found that TKIC leads to superior firm performance, but the degree of media naturalness does not seem to facilitate knowledge transfer. The results confirm that supplier involvement is a pivotal process in that the buying firm’s internal resources and the major suppliers’ resources and capabilities are combined to achieve a competitive advantage – TKIC.Research limitations/implicationsThis study is subject to the typical limitations inherent in cross-sectional research designs using subjective measures. That said, this still has some important implications indicating that relational resources, such as buyer’s trust and supplier involvement, are critical in developing TKIC that “seize” opportunities from interfirm relationships and integrate knowledge across and within firm boundaries. Moreover, while knowledge management tools can resemble face-to-face interactions to the largest extent, the research suggested that it cannot substitute face-to-face communications in transferring tacit knowledge.Practical implicationsManagers deal with complex interactions and linkages due to tacit knowledge from components, systems and modules, which are critical in developing organizational capabilities. Relational resources are important strategic assets facilitating resource combination and coordination. Managers must coordinate among multiple sources of learning and partner with their suppliers at an earlier stage to develop the relational capabilities and efficiently steer the process of boundary redefinition. Finally, managers must have the ability to manage tacit knowledge within the interface with suppliers using organizational mechanisms (i.e. TKIC) to help them absorb external knowledge from their supplier network and integrate it with specific internal competences.Social implicationsRecent disruptive technological developments pressure organizations to become more flexible by requiring firms to adapt quickly to constantly changing markets and to have the ability to apply different resources and capabilities to specific unique situations. All this with a huge impact on the firm’s employees and society in general. Thus, interfirm relationships and the role of knowledge integration is especially crucial, given the current industry trend in favor of experimenting with innovative production methods (e.g. flexible manufacturing and modular production) that can help managers to rethink work conditions in a more meaningful and flexible for society.Originality/valueWhile prior research treats integrative capability mainly as a mechanism that explains superior firms’ performance in an interfirm relationship, few research efforts have explicated what shapes TKICs. By examining the relationship between relational resources, TKIC and performance, this study fills this research gap and develops and tests a theoretical framework.

The impact of modular designs on new product development outcomes: the moderating effect of supply chain involvement

PurposeThis study aims to investigate the impacts of product modularity (PM) and multiskilled employees (MEs) on new product development (NPD) outcomes and explore the moderating effect of supply chain involvement.Design/methodology/approachThe authors used data collected from 317 manufacturers to empirically examine the conceptual model and conducted hierarchical regression analysis to test the hypotheses.FindingsThe results reveal that PM significantly improves NPD outcomes. The relationship between PM/MEs and NPD outcomes is strengthened when the level of supplier involvement is high, whereas the relationship between MEs and NPD outcomes is weakened when the level of customer involvement is high.Research limitations implicationsFirst, this study only focuses on PM and MEs as two types of modular designs. Second, the inter-relationship between modular designs and supply chain involvement might be contingent. Third, the authors use cross-sectional data that cannot reflect causal effects of modularity on NPD outcomes.Originality/valueThe findings contribute to the understanding of the alignment between modular designs and supply chain involvement considering NPD outcomes. This study also contributes to the concept of modularity by identifying MEs as a type of modular design.

An exploratory study of the effects of supplier relationships on new product development outcomes

AbstractThe literature about the influence of suppliers on new product development (NPD) project outcomes shows mixed results. Focusing on supplier relationships, especially the concept of supplier involvement, we present a two‐stage model explaining supplier relationships and their impacts on product quality, project development time and project cost. The level of supplier involvement on the NPD project is seen as contingent on the level of technical difficulty of the project. This model is tested using secondary survey data.

Risky business or competitive power? supplier involvement in Japanese product design

Notwithstanding the alleged risks of outsourcing design work, leading manufacturers in the Japanese automotive industry collaborate closely with their key suppliers. Despite widespread recognition of the effectiveness of these close-knit supplier networks, however, little research exists on the factors that affect the purchase of design work from suppliers. S. Nazli Wasti and Jeffrey K. Liker fill this gap by exploring the factors that affect Japanese automotive firms' purchase of design work from their component suppliers. Using data from a survey of 122 Japanese automotive component suppliers, their study addresses two key questions. First, what factors lead Japanese buyers to involve some suppliers heavily in design while giving others relatively little control over design decisions? And second, does the Japanese practice of involving suppliers in design offer performance benefits? The study focuses on first-tier suppliers of parts, assemblies, and complete subsystems (e.g., audio, fuel and emissions, heating and air conditioning). The study does not include suppliers of raw materials and chemicals, assembly and processing equipment, indirect materials, tooling and dies, computers and software, or engineering and business consulting services. The study breaks down the broad concept of supplier involvement in design work into three measurable elements: the extent to which the supplier influences decision-making during the early stages of product development; the amount of control the buyer retains over the design; and the frequency of design-related communication between the buyer and the supplier. Factors that have a positive effect on the level of supplier involvement among the companies studied include technological uncertainty of the component and the supplier's in-house technical capabilities. For companies in the study, the level of competition in the supplier market has a negative effect on the degree of supplier involvement in design. The responses indicate that supplier involvement offers performance benefits for both the supplier and the buyer. For the supplier firms studied, increased involvement in the design process permits greater focus on design for manufacturability (DFM). And of course, supplier-generated design improvements clearly benefit the buyers, allowing these firms to capitalize on the experience and the insight that their suppliers have regarding the parts that they supply.

Risky Business or Competitive Power? Supplier Involvement in Japanese Product Design

Notwithstanding the alleged risks of outsourcing design work, leading manufacturers in the Japanese automotive industry collaborate closely with their key suppliers. Despite widespread recognition of the effectiveness of these close‐knit supplier networks, however, little research exists on the factors that affect the purchase of design work from suppliers.S. Nazli Wasti and Jeffrey K. Liker fill this gap by exploring the factors that affect Japanese automotive firms' purchase of design work from their component suppliers. Using data from a survey of 122 Japanese automotive component suppliers, their study addresses two key questions. First, what factors lead Japanese buyers to involve some suppliers heavily in design while giving others relatively little control over design decisions? And second, does the Japanese practice of involving suppliers in design offer performance benefits? The study focuses on first‐tier suppliers of parts, assemblies, and complete subsystems (e.g., audio, fuel and emissions, heating and air conditioning). The study does not include suppliers of raw materials and chemicals, assembly and processing equipment, indirect materials, tooling and dies, computers and software, or engineering and business consulting services.The study breaks down the broad concept of supplier involvement in design work into three measurable elements: the extent to which the supplier influences decision‐making during the early stages of product development; the amount of control the buyer retains over the design; and the frequency of design‐related communication between the buyer and the supplier. Factors that have a positive effect on the level of supplier involvement among the companies studied include technological uncertainty of the component and the supplier's in‐house technical capabilities. For companies in the study, the level of competition in the supplier market has a negative effect on the degree of supplier involvement in design.The responses indicate that supplier involvement offers performance benefits for both the supplier and the buyer. For the supplier firms studied, increased involvement in the design process permits greater focus on design for manufacturability (DFM). And of course, supplier‐generated design improvements clearly benefit the buyers, allowing these firms to capitalize on the experience and the insight that their suppliers have regarding the parts that they supply.