Content area
Abstract
Rapid technological development, shorter product life cycle, clockspeed competition, and increased outsourcing have prompted many firms to involve their suppliers early in their new product development activities. This paper examines early supplier involvement in new product development and how it is influenced by outsourcing and degree of supplier-buyer interdependence. One of the objectives behind early supplier involvement is to increase product development efficiency and effectiveness as well as to tap into supplier's technological capabilities. However, suppliers can introduce serious problems as well, aggravating the complexity of managing new product development projects furthermore. The aim of the paper is to show that the degree of supplier involvement is dependent on various tradeoffs between sourcing strategies and the degree of supplier-buyer interdependence. The 3 case studies indicate that, although these firms are aware of the potential benefits of early supplier involvement in NPD, only one firm is embracing the idea, in spite of high degree of outsourcing. Depending on the technological complexity of the product architecture and how it is decomposed, the suppliers can be involved during the planning, design, or production stages of new product development process. Based on the findings of the case studies, some implications for theory and practice are then discussed. [PUBLICATION ABSTRACT]