Suppliers In New Product Development Research Articles

Attributes for open innovation with automotive suppliers in new product development: a case study of the electrical and electronic system

Attributes for open innovation with automotive suppliers in new product development: a case study of the electrical and electronic system

Attributes for open innovation with automotive suppliers in new product development: a case study of the electrical and electronic system

Attributes for open innovation with automotive suppliers in new product development: a case study of the electrical and electronic system

Effect of Supplier Relationship Management on Organizational Performance: A Case Study of the Plastic Manufacturing Industry in Harare Between 2015-2019

Supplier relationship management (SRM) is the overall coordination, collaboration and information sharing between an organization and its suppliers. The study focused on the effect of supplier relationship management on organizational performance for firms in the plastic manufacturing industry in Harare. This research adopted an interpretivism philosophy and data was collected using open-ended questionnaires and telephonic interviews. The population was derived from plastic manufacturing companies operating in Harare. A purposive sampling technique was used to select twenty participants. The study findings revealed that organizations in the plastic industry enjoyed several supplier relationship management benefits that included information sharing and involvement of suppliers in new product development as these contributed positively to their overall organizational performance. However, firms in the plastic manufacturing industry also encountered supplier relationship management challenges that affected their organization’s performance. Challenges such as organizations failing to meet their obligations to the buyer–supplier relationship resulting in negative reactions by suppliers. Supplier relationship management implementation was also constrained by challenges that included the unavailability of supplier relationship management (SRM) team and lack of resources to support the SRM system. It was however noted that organizations in the plastic of supplier relationship management to the organizational performance. These strategies included open communication with suppliers for the purposes of sharing critical information, the involvement of suppliers in the new product manufacturing industry implemented SRM strategies that ensured the positive contribution development and supplier certification as a pre-requisite to supplier engagement. The study, therefore, recommends that organizations in the plastic manufacturing industry continue to develop and maintain clear lines of communication with their suppliers. These would enable suppliers to share information that is critical in their strategic decision-making process. Further recommendations were also made to the effect that organizations in the plastic manufacturing industry should always endeavor to honor their obligation to the buyer-supplier relationship.

Collaborative practices in new product development projects involving suppliers

Collaboration with suppliers in New Product Development (NPD) is essential for business competitiveness. However, the management of such collaborative project needs to focus on interactions between team members from different companies since they performed inter-organizational activities. While the impact of collaboration with suppliers on NPD project performance has been widely studied, the investigation of practices to support daily collaborative activities between both teams has received limited attention. This paper aims at developing a framework of operational practices for successful inter-organizational collaboration in NPD. The practices enacted by both project teams in six case studies were examined according to the stages of the collaboration and a knowing perspective. The results revealed some peculiarities linked to the inter-organizational context. Practices interact with each other across stages with a specific dynamic. More particularly, early in the project, practices to justify the collaboration with the suppliers are determinant for practices related to the creation of social interactions between project members and project commitment. The results also show that boundary objects are useful formal socialization mechanisms for supporting the undertaking of collaborative work.

Co-creation with customers and suppliers: an exploratory study

Purpose Co-creation along the new product development (NPD) seems the winning approach in nowadays market. The purpose of this paper is to explore the collaboration and interaction flows between suppliers and customers in co-creation initiatives devoted to NPD. Design/methodology/approach After developing a classification of demand-side and supply-side involvement in co-creation along the NPD process, 13 cases of co-creation in the consumer goods industry, within the Italian context, have been analyzed. Findings Three patterns of co-creation have been identified: supplier-driven approach: companies co-creating with suppliers in multiple NPD phases, while involving customers only in one; customer-driven approach: companies involving customers in multiple phases, while engaging suppliers only in one and firm-driven approach: companies involving both customers and suppliers in one single phase. Further, the locus of relevant knowledge drives to different co-creation approaches. Research limitations/implications The work contributes to extant literature by: providing a classification of demand-side and supply-side involvement in NPD; empirically investigating the interaction flows between customers and suppliers in co-creation initiatives along the NPD; highlighting the factors potentially affecting a concurrent involvement of customers and suppliers in NPD. Practical implications The findings can help to efficiently and effectively design and manage the relation with both suppliers and customers in co-creation projects devoted to NPD. Originality/value The involvement of suppliers and customers in co-creation initiatives has been so far analyzed only separately in literature. This study opens a new stream of research, stressing how the evolution of the market, toward a more participative one, spurs the need to investigate the collaboration and interaction flows between the two actors.

Incentivizing supplier participation in buyer innovation: Experimental evidence of non-optimal contractual behaviors

Original equipment manufacturers increasingly involve suppliers in new product development (NPD) projects. How companies design a contract to motivate supplier participation is an important but under-examined empirical question. Analytical studies have started to examine the optimal contract that aligns buyer-supplier incentives in joint NPD projects, but empirical evidence is scarce about the actual contracts offered by buying companies. Bridging the analytical and empirical literature, this paper compares optimal contracting derived from a parsimonious analytical model with actual behaviors observed in an experiment. In particular, we focus on how project uncertainty, buying company effort share, and buyer risk aversion influence three contractual decisions: total investment level, revenue share and fixed fee. Our results indicate significant differences between the optimal and actual behaviors. We identify various types of non-optimal contractual behaviors, which we explain from a risk aversion as well as a bounded rationality perspective. Overall, our findings contribute to the literature by showing that (1) the actual contractual behaviors could differ significantly from the optimal ones, (2) the actual contract design is sensitive to changes in project uncertainty and buying company effort share, and (3) the significant roles of risk aversion and bounded rationality in explaining the non-optimal contractual behaviors.

Why do buyers share knowledge with suppliers in new product development? current and alternative supplier antecedents

ABSTRACTPurpose: Interfirm knowledge sharing has been well recognized to activate the performance and competitiveness improvement of the firms. Previous research has discussed the impacts of current suppliers on buyer–supplier knowledge sharing, but does not explain how this influence occurs. This study aims to disclose the mechanism by which both current and competing suppliers impact buyer–supplier knowledge sharing in buyers’ new product development activities.Methodology/approach: This study proposed a conceptual model based on relational exchange theory and developed eight hypotheses. Questionnaire survey was used to collect empirical data from R&D staff of Taiwanese electronics firms. This study distributed 1,475 questionnaires and received 246 eligible questionnaires. Structural equation modeling was used to test and verify appropriateness of the proposed model.Findings: The findings show that current supplier asset specificity positively and directly influences buyer–supplier knowledge sharing in new product development. The current supplier asset specificity also has indirect positive influence on buyer–supplier knowledge sharing in new product development via the mediating effects of buyer trust, satisfaction, and commitment. However, the attractiveness of alternative suppliers only indirectly and negatively affects buyer–supplier knowledge sharing via the mediating effects of buyer trust, satisfaction, and commitment.Research limitations/implications: This study surveyed the firms in Taiwanese electronics industry. Nevertheless, new product development activities are executed by electronics firms in numerous countries and firms in various industries. For validating the generalization of this study’s results, future research can investigate firms in other industries and countries to verify the proposed model and hypotheses.Practical implications: Current suppliers’ asset specificity is found to exert more influence on buyer–supplier knowledge sharing than alternative attractiveness. The findings imply that current suppliers should focus on investing specific assets for buyers other than stress the attractiveness and threat of competing suppliers.Originality/value/contribution: This study initiates to approach the antecedents and influence mechanism of current buyer–supplier knowledge sharing via both perspectives of current and competing suppliers.

Do resource differences between manufacturers and suppliers help or hinder product innovation of manufacturers? The moderating role of trust and contracts

It is a common practice of manufacturers to involve suppliers in new product development (NPD). Extant literature indicates that supplier integration has mixed effects on manufacturers' NPD and the contradicting findings result from either the external contingent factors or the tactical integration practices. We argue instead that the mixed effects are rooted in resource differences between manufacturers and suppliers. Further, we examine the functions of trust and contracts as the resource integration and coordination mechanisms to manage the effects of resource differences on product innovation of manufacturers. Based on a survey among 189 manufacturing firms, our research shows that resource differences follow an inverted U-shaped effect on product innovation of manufacturers and that trust strengthens while contract complexity attenuates the curvilinear relationship. As such, our research extends the existing body of literature to account for the divergent outcomes of supplier integration from the perspective of resource differences. Moreover, it demonstrates the double-edged effects of trust and contracts as devices of resource integration and coordination. Our research offers useful research and managerial implications.

Structuring Supplier Involvement in New Product Development: A China–U.S. Study

ABSTRACTBuying and supplying organizations rely on each other for developing better products in an efficient manner, which explains the popularity of involving suppliers in new product development (NPD). However, such involvement is not always successful, partially due to the challenges of structuring a buyer–supplier team to manage joint dependence and dependence asymmetry. This study adopts an organizational dependence view to examine how three types of intergroup structures—administrative (formalization and centralization), task (task interdependence), and physical (colocation)—influence project performance and buyer learning in NPD projects. Furthermore, adopting a contingency theory perspective, we study whether the national context moderates the effects of intergroup structures on project outcomes. We adopt a two‐group structural equation modeling approach to test hypotheses with survey responses from a sample of NPD projects in the United States (US) and China. Results show different ways in which intergroup structures influence project performance and buyer learning in the two culturally, economically, and institutionally distinct countries. We discuss the implications of these new findings and present directions for future research.

Investigating the effects of customer relationship management and supplier relationship management on new product development

Original scientific paper Most organizations today are increasingly influenced by competition and global markets due to advancements in information technology and economic globalization. Developments in information technology and increasing competitiveness are led to shorter product life cycles, increase rate of product obsolescence, growth of high-quality products and introduction of new products into the market. These factors have stimulated organizations to follow NPD goals such as reducing product development time, lower product cost with higher quality, shorter time-to-market, and improving delivery performance to achieve profitability and keep their market position. Customer and supplier involvement during the NPD processes has attracted widespread attention in the literature. SRM and CRM can improve the performance of New Product Development (NPD) as well as facilitate the role of customers and suppliers in NPD in the path towards a high-performance organization; therefore, it is necessary for organizations to gain a correct understanding of the roles of CRM and SRM in NPD processes and to draw on such a knowledge to enhance the performance of the new product. Given the advantages of applying CRM and SRM within organizations, this paper tries to explore the different roles of CRM and SRM which play in NPD process.

Variation of purchasing's involvement: case studies of supplier collaborations in new product development

Firms are increasingly involving suppliers in new product development (NPD) and one reason for this is to access technological knowledge. Previous research argues that purchasing fulfils an important role in involving the suppliers in NPD. However, purchasing's role under technological uncertainty has not been investigated in detail. The purpose of this paper is to explore purchasing's role in technology selection, supplier selection and level of participation in NPD projects involving suppliers. Three NPD projects at one large high-tech firm are studied. The results show that purchasing has limited influence in the technology selection process, but fulfils an important role in the selection of the supplier and has a role as a trouble-shooter throughout the collaborative NPD projects. Purchasing does not necessarily need to be involved in solving daily, routine problems, but serves as a trouble-shooter to solve problems related to the supplier's strategy, the relationship with the supplier, and commitment issues.

Uncertainty in collaborative NPD: Effects on the selection of technology and supplier

To gain competitive advantage, firms involve suppliers in New Product Development (NPD). However, uncertainty affects selection of suppliers and associated technologies, and selection outcomes in terms of commitment to one supplier or maintaining flexibility. We report on a case study of collaborative NPD with the aim to develop an energy storage unit. The case involved selection of both technology and supplier, where both were changed during the NPD. Drawing upon Hall et al. (2011), we analyze technological, organizational and commercial uncertainties. We demonstrate how technological, commercial and organizational uncertainties cause firms to seek flexibility rather than commitment to one supplier.

Communication intensity, goal congruence, and uncertainty in buyer–supplier new product development

Manufacturers involve suppliers in new product development in order to access knowledge and resources, but these benefits only occur with effective project-level integration. Adopting a contingency theory view, we develop hypotheses concerning how two integrative devices, intensive communication and congruent goals, influence project performance under various conditions of uncertainty. We test our theoretical model with a sample of 214 buyer–supplier joint new product development projects. Results suggest that communication intensity is positively associated with project performance when either task or relational uncertainty is high, but is also negatively associated with performance when task uncertainty is low. Goal congruence is positively associated with project performance, especially when either task uncertainty is low or relational uncertainty is high. We discuss the implications of these findings for theory and practice.

Direct and Mediated Effects of Product Modularity on Development Time and Product Performance

Product modularity is often considered a crucial driver for the improvement of new product development (NPD) performance, in terms of NPD time and product performance, especially in those contexts characterized by a high product variety and constantly changing demand. However, quantitative studies demonstrating these links are scant and an increasing amount of anecdotal evidence suggests that there is a need to develop a more complete theory on the effects of product modularity on NPD time and product performance by examining the potential mediating effect of supplier involvement in NPD. To meet this need, we analyzed the impact of product modularity on NPD time and product performance, and whether supplier involvement in NPD can mediate “modularity-NPD time” and “modularity-product performance” relationships. Data from a sample of 201 manufacturing plants demonstrate that product modularity significantly affects NPD time and product performance. In addition, the impact of modularity was partially mediated by the involvement of suppliers in NPD. A better understanding of this effect can contribute to clarifying the mechanisms by which product modularity affects NPD time and product performance and thus could give guidance to managers on how to lever product modularity in order to improve the NPD process.

An Exploratory Model for Coordination Approaches in Buyer-Supplier- Supplier Triads in NPD Projects

In this paper, we identify the coordination, control and communication patterns between the buyer, design agency, and component suppliers in new product development (NPD) projects. Previous researc...

AN EMPIRICAL STUDY OF KNOWLEDGE TRANSFER IN WORKING RELATIONSHIPS WITH SUPPLIERS IN NEW PRODUCT DEVELOPMENT

This study examines the factors (trust, communication, supplier relationship specific adaptations, supplier flexibility, and relationship history) that influence knowledge transfer from the supplier to the customer firm in new product development, and the impact of knowledge transfer on product development performance. It also suggests that knowledge tacitness moderates these relationships. Based on a sample of 186 US firms, this study finds that trust, communication, supplier relationship specific adaptations, and supplier flexibility influence knowledge transfer. Knowledge transfer, in turn, has an effect on new product development performance. Mixed findings have also been reported in this paper with respect to the moderating effects of knowledge tacitness. Trust, supplier flexibility, and relationship history are more important for tacit knowledge transfer than for explicit knowledge. Knowledge tacitness does not moderate the relationship between knowledge transfer and NPD performance. However, the results show that both tacit and explicit knowledge transfer significantly affects NPD performance.

Trust, partner selection and innovation outcome in collaborative new product development

A key feature of collaboration in general and collaboration for innovation in particular is the existence of trust. Trust is important because it reduces the costs and risks involved in collaboration, while also increasing the overall performance. This article explores the role that trust plays during the selection of suppliers in new product development (NPD), and the outcome that reliance on trust has on the innovation effort. The research involves a case study of two organisations following contrasting approaches to NPD sourcing, but both relying on collaborative, long-term relationships. In both cases, we find goodwill trust as the key variable explaining the reliance on collaboration. We also find that over-reliance on goodwill trust and geographical proximity in selecting NPD suppliers leads to an emphasis on incremental innovation which hampers the ability of both organisations to engage in radical NPD.

Supply network delegation and intervention strategies during supplier involvement in new product development

PurposeThis paper proposes and empirically investigates two strategies that companies can employ to involve indirect suppliers in new product development (NPD): supply network delegation; and supply network intervention. The implications of the two strategies are explored.Design/methodology/approachThe paper brings together the traditional NPD literature, organizational behaviour and organizational economics literature, and reports on three in‐depth case studies of NPD projects, involving 39 semi‐structured interviews across three supply networks.FindingsThe findings reveal different manifestations of the two strategies of supply network intervention and delegation, when applied as part of supplier involvement in product development, and positive and negative indications of delegation and intervention, depending on the actor perspective: manufacturers perceive a need to control the product development process across several supply network tiers through intervention in supplier selection and communication, but these actions are likely to “tie the hands of the suppliers”.Practical implicationsManagers are advised to explicitly delegate decisions to suppliers, for example, by issuing parts approval lists and encouraging communication and problem solving amongst suppliers, and to exercise caution in applying the intervention strategy.Originality/valueThe paper contributes to a better understanding of how to involve indirect (sub‐) suppliers in product development, and the implications of these actions for multiple supply network actors.

The role of integrative capabilities in involving suppliers in New Product Development: a knowledge integration perspective

Early Supplier Involvement (ESI) aims to facilitate New Product Development (NPD) success and create competitive advantage for the purchasing firm. Unfortunately, empirical results are inconsistent in verifying the linkage between ESI and NPD success. To solve this paradox, this paper views ESI as a knowledge integration process and examines the role of the purchasing firm's integrative capabilities in the process. Competing models are proposed and tested. The results demonstrate that NPD success depends not only on the supplier's knowledge and expertise, but also on the purchasing firm's integrative capabilities to absorb knowledge and increase efficiency of knowledge integration.

TIMING AND EXTENT OF SUPPLIER INTEGRATION IN NEW PRODUCT DEVELOPMENT: A CONTINGENCY APPROACH

While research on internal integration in new product development (NPD) has progressed to the examination of contingency factors that assess adequate levels of integration, contingency models examining the appropriate timing and level of integration with suppliers in NPD have yet to be empirically tested. The purpose of this study is to explore how contingency factors affect the timing and level of supplier integration into NPD, and how varying levels of integration affect project performance. The study uses structural equation modeling to analyze data on 116 NPD projects employing supplier integration sampled from international organizations representing a wide variety of industries. Results suggest that newer products signify the need for earlier supplier integration, while positive prior experience with the supplier and the procurement of highly strategic items indicate the need for tighter integration. When employed, these patterns of activity result in high levels of perceived NPD performance.