OEM Participation in SME Suppliers New Product Development Efforts

Abstract

A B S T R A C TThis study examines the effects of product complexity, criticality, and innovativeness on OEM performance when those links are mediated by the original equipment manufacturer (OEM)'s participation in the SME supplier's new product development and moderated by the manufacturer's culture. A cross-sectional sample of 169 purchasing managers from the industrial and commercial machinery, computer, electrical, and transportation equipment industries participated in the study. Respondents completed questionnaires that were delivered via surface mail or email. Both mediation and moderation were examined using standard regression techniques. Results show significant positive relationships between the three different types of product characteristics and manufacturer participation, and significant relationship between manufacturer participation and performance. Results also indicate a moderating role for organizational culture on the relationship between manufacturer participation and NPD performance. Keywords: Product complexity; Product criticality; Product innovativeness; OEM customer participation Ⅰ. IntroductionIncreasing dynamism in the technological and market environments is making new product development (NPD) more important to the competitive postures of companies in many industries. Increased competition from both domestic and global players, the continuous introduction of new products and processes, and changing customer requirements shorten product life cycles, while rising product development costs enlarge reliance on collaboration in both the NPD process and eventual commercialization (Gupta and Wilemon, 1990;Wheelwright and Clark, 1992). This collaboration takes place not only across units within organizations, but also † Jaewon Yoo Assistant Professor, Department of Entrepreneurship & Small Business, Soongsil University, Seoul, Korea E-mail: yjw1774@ssu.ac.kr across channel levels in value creation chains. Two contexts exist for marketing channel member participation in NPD. Which channel member designs the new product and takes responsibility for the NPD process determines the context. First, a supplier participates in the manufacturer's NPD process, and second, the original equipment manufacturer (OEM) participates in the SME supplier's NPD process. However, most research focuses on the importance of the manufacturers' NPD, with attention to their processes and up-front activities, while there is limited research that focuses on manufacturer participation in suppliers' NPD.In the competitive environment, suppliers are an increasingly important resource for manufacturers. Because of hard global competition OEM manufacturers place strict demands on their local SME suppliers. Price competition contrives cost reduction pressures for entire supply chain. Thus manufacturers require SME suppliers

Electronic Commerce, MCSs Change, and the I mprovement of Supply-chain Performance

“…Trading firms can utilize these expanded knowledge resources for the execution of transactional tasks to attain high levels of supply-chain performance, which lead to the enhancement of organizational competitiveness or performance. Inter-organizational information exchanges with B2B EC in buyer and supplier firms support the knowledge transfer, sharing, and acquisition that are vital to intensifying their competitive advantages, which contribute to the improvement of supply-chain and overall organizational performance (Cheng and Fu 2013;Yoo, 2016). Accordingly, Hypothesis 5 can be suggested.…”

Kompleksitas Produk Dan Kualitas Komunikasi Terhadap Inter-Organizational Cost Management Dan Open Book Accounting

“…Kompleksitas produk telah dipandang sebagai faktor penting dalam konteks hubungan antar-organisasi. Dampak kompleksitas produk pada rantai pasok berpengaruh dalam pengambilan keputusan, struktur pembelian, perilaku konsumen, kualitas, efisiensi desain produk dan koordinasi mitra (Wong et al, 2015;Won Yoo, 2016). Tinjauan literatur menunjukkan bahwa kompleksitas produk adalah faktor utama yang memengaruhi kolaborasi dan berbagi informasi perusahaan (Corso et al, 2003;Wong et al, 2015;Won Yoo, 2016;Tenorio et al, 2020).…”

“…Dengan demikian, melalui produk yang kompleks, pemasok dan pembeli lebih menekankan pada mekanisme kolaborasi untuk mengurangi ketidakpastian dan asimetri informasi dan mengelola biaya transaksi. Dalam hal manajemen biaya dalam hubungan antarorganisasi, kompleksitas produk dan kualitas komunikasi yang dapat mempengaruhi kolaborasi, berbagi informasi dan biaya transaksi (Chen et al, 2013;Wong et al, 2015;Won Yoo., Jurnal Buana Akuntansi 2016; Galahitiyawe & Jayakody, 2019;Tenorio et al, 2020). Kompleksitas akan mempengaruhi hubungan antar organisai dan dapat mengurangi data biaya bersama antar mitra rantai pasokan melalui peraktik IOCM.…”