Collaborative innovation with suppliers: a conceptual model for characterising supplier contributions to NPD

Abstract

Abstract:It is widely acknowledged that suppliers contribute positively to innovation in new product development. However, it remains rather unclear what suppliers actually contribute to innovation. Based on a literature review focusing on 80 articles, and a focus group meeting with strategic purchasing managers, a conceptual framework is developed categorizing different supplier inputs to innovation. This model is formulated by characterizing supplier inputs on a component level and architectural level, related to knowledge extension and knowledge reconfiguration respectively. Further, supplier inputs can be incremental or radical in nature, resulting in either a dependence on the supplier's process knowledge or the supplier's technology knowledge. These situations imply different conditions for knowledge integration.

Ranking the barriers of supplier development using fuzzy AHP approach

“…Strategic SDBs SDB1 Lack of top management support Qi et al(2012) and Govindan et al (2010) SDB2 Lack of buyer commitment Dou et al (2014), Farzad and Kuan (2011) and Talluri et al (2010) SDB3 Lack of recognition of suppliers awards and incentives Sillanpää et al (2015) and Bai and Sarkis (2011) SDB4 Lack of long term contracts between buyer and supplier Wu and Wu (2015) SDB5 Lack of buyer supplier interdependency Habib et al (2015), Rosell and Lakemond (2012) and Krause et al (2007) SDB6 Differences in supplier's strategic objectives and goals Li et al(2012) SDB7 Attitude difference of buyer and supplier towards SD activity Farzad and Kuan (2011) and Talluri et al (2010) Mutual trust SDBs SDB8 Short term relationships or lack of long-term relationship Alireza and Gianmarco (2010), Batson (2008) and Wagner (2011) SDB9 Non-cooperative efforts Sevinc (2013) and Li et al (2012) SDB10 Buyer's frequently switching suppliers Mohanty et al (2014) and Raafat et al (2012) SDB11 Suppliers concern about buyer earning more profit Das et al (2006) SDB12 Opportunistic behaviour of supplier Li et al (2012) and Wagner (2006) Supplier's reliability and capability SDBs SDB13 Lack of supplier commitment or supplier's reliability Li et al (2012) and Giannakis (2008) SDB14 Customer dissatisfaction due to non-improvement in supplier performance Sevinc (2013) and More and Mattin (2012) SDB15 Current and future capabilities of supplier Sharma and Yu (2013), Kumar et al (2012) and Esposito and Passaro (2009) SDB16 Lack of environmental awareness and performance …”

Integrating knowledge with suppliers at the R&D-manufacturing interface

“…A supplier can take responsibility for product engineering activities as well as provide input to align the supplier's manufacturing process to the buyer's design (Rosell and Lakemond, 2012;Koufteros et al, 2005). Supplier knowledge about a specific product technology tends to extend the R&D-manufacturing interface to the product design phase of the product development process, the technology is often risky, not always completely understood, and may require refinement before it can be integrated by the buyer firm (Tatikonda and Stock, 2003).…”

Supplier integration for new product developments : antecedents for supplier integration in modular product designs

“…Specialized technical knowledge, long-term experience and most of the time cross-industrial familiarity with technologies allow suppliers to leverage knowledge and to develop specific modules and sub-systems faster, cheaper and with better performance (Koufteros et al, 2007). As a result, the innovation level of the buying firms and the likelihood of developing commercially successful products increase significantly (Faems et al, 2005;Rosell & Lakemond, 2012;Von Hippel, 1988). Even though scholars agree on the relevance of supplier resources for innovation creation in supply chains, reviewing open innovation literature shows that the supplier perspective of competences is less intensively researched (Gassmann et al, 2010;Roy et al, 2004).…”

“…Research implies that supplier integration contributes not only to a large share of the end-product, but also fosters the performance of buying OEMs. For example, the innovation ability of suppliers was identified as a key factor for technical leadership and innovation performance of buying firms (Azadegan & Dooley, 2010;Rosell & Lakemond, 2012;Tödtling, Lehner, & Kaufmann, 2009;Von Hippel, 1988;Wagner, 2009). In addition to innovation, the integration of suppliers in product development is reasoned to enrich OEM's product development performance in terms of productivity, speed and product quality (Clark, 1989;Primo & Amundson, 2002;Ragatz, Handfield, & Petersen, 2002).…”

“…Technical competences, long-term experience and most likely cross-industrial familiarity with technologies allow suppliers to leverage knowledge and to develop specific modules and sub-systems faster, cheaper and with better performance (Koufteros et al, 2007). As a result, the innovation level of the buying firms is positively influenced (Rosell & Lakemond, 2012;Von Hippel, 1988) and the likelihood of developing commercially successful products increases (Faems et al, 2005).…”