Does supplier involvement enhance financial performance? The encapsulation effects of product modularity and smartness

Purpose This study aims to explore the conditional relationships between supplier involvement and financial performance. From a problem-solving perspective, this study takes the focal firm as a problem-solving system. It is postulated that supplier involvement enhances financial performance by helping solve complex problems of new product development. Furthermore, product modularity and smartness are considered contingent factors to clarify the boundary conditions. Design/methodology/approach The ordinary least squares regression was conducted to test the hypotheses based on survey data from 136 high-tech firms in China. Findings Supplier involvement is positively related to financial performance. Product modularity weakens the impact of supplier involvement on financial performance. Furthermore, product smartness strengthens the negative influence of product modularity on the relationship between supplier involvement and financial performance. Originality/value This study combines supplier involvement with product attributes. It takes a problem-solving perspective to rethink suppliers’ roles in new product development as problem-solvers rather than resource holders. Furthermore, this study advances the encapsulation effects of product modularity and smartness to influence the supplier involvement–financial performance link.

How specific investments influence NPD performance: exploring the roles of supplier involvement and IT implementation

PurposeThe impact of specific investments to performance has mixed arguments. This paper aims to clarify how and under what conditions specific investments made by manufacturer tailored to supplier affect the new product development (NPD) performance of the manufacturer itself.Design/methodology/approachThis study develops a moderated mediation model, testing the roles of supplier involvement and information technology (IT) implementation by regression and bootstrap analyses from 378 NPD projects.FindingsThe results show both physical and human specific investments positively affect NPD performance. IT implementation strengthens the mediated role of supplier involvement, i.e. the mediator role of supplier involvement between specific investments and NPD performance link is significantly weaker while IT implementation is lower.Originality/valueThe findings contribute to identify IT implementation and supplier involvement as two important constructs, together demonstrating how and when specific investments affect NPD performance.

Managing glitches in collaborative product development with suppliers

Purpose This 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/approach This 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. Findings Social 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/value This 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.

Adopting service suppliers for servitisation: which type of supplier involvement is more effective?

PurposeThe purpose of this study is to analyse the effect of different forms of service supplier involvement on the service business dimensions necessary for servitisation and on the resulting servitisation performance.Design/methodology/approachThree different configurations of service supplier involvement are considered in this study: black box (service design and execution driven by the service supplier), grey box (joint service design) and white box (service design driven by the product firm). The study analyses their contribution by means of a cross-sectional quantitative survey with 104 Brazilian and Italian firms using multivariate analysis of variance.FindingsCompanies that adopted the grey box configuration presented the best results in servitisation. White and black box may offer different benefits depending on the service business dimension that the company chooses to emphasise.Originality/valueThe results show which type of service supplier involvement is more effective for servitisation. The empirical data demonstrate that a joint service design (grey box involvement) is the best approach, but the paper discusses limitations for its implementation and alternatives regarding the two other types of service supplier involvement. The findings contribute to the discussion on the role of service suppliers in servitisation and provide empirical evidence to support operations managers in deciding on how to organise their service supply chain when aiming for servitisation.

Role of supplier involvement and project leader in SNPD: a conceptual model and exploratory case study

PurposeThis paper focusses on the factors to sustainable product development (SNPD) projects success. More specifically, it aims to explore and understand the role of supplier involvement (SI) within SNPD. Additionally, it investigates how effective project leaders can facilitate effective supplier involvement and enhance focal firm's ability to successfully carry out sustainable achievement in product development.Design/methodology/approachA theoretical framework among SI, SNPD, project leader's personality and leadership style has been established. Six interviews collected from different industries are used to further explore the relationship among SI, SNPD, leader's personality and leadership style.FindingsThe difficulties in managing suppliers, the timing and extent of supplier involvement, communication method and frequency, as well as supplier contribution and challenge in SNPD has been summarized. The interviews also confirmed that effective leaders who possess certain personality traits enable appropriate supplier involvement, promote prosperous SNPD and enhance the relationship between SI and SNPD performance by allowing individual members, teams and organizations to function well.Originality/valueSustainable new product development (SNPD) has been recognized as one of the key factors to achieve environmental and economic success. The paper explores the role of supplier involvement in SNPD project and emphasizes the role of project leaders in the process.

Relational resources, tacit knowledge integration capability, and business performance

Purpose This 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/approach Based 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. Findings The 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/implications This 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 implications Managers 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 implications Recent 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/value While 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.

Supplier Involvement in New Product Development

Supplier involvement in new product development (NPD) has received significant attention in the operations management literature. Based on a thorough meta-analysis of correlations for papers published in operations management journals from 1989 to 2014, this study assesses the performance implications of supplier involvement in NPD. The analysis at the aggregate level indicates a significant positive relationship between supplier involvement and overall NPD performance. However, the analysis also indicates that this relationship may be contingent on the presence of various moderating factors. Further, the detailed analysis suggests that it is important to understand that certain supplier involvement dimensions do not simultaneously affect all performance dimensions. This study highlights the dimensions of supplier involvement with the greatest impact, emphasizes the importance of considering moderating factors in future investigations, and identifies areas of future research on the topic.