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Article
Publication date: 13 July 2015

Yi Li, Gang Li and Taiwen Feng

The purpose of this paper is to investigate the relationships among suppliers’ trust and commitment, transaction-specific investment, switching cost, and customer…

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1893

Abstract

Purpose

The purpose of this paper is to investigate the relationships among suppliers’ trust and commitment, transaction-specific investment, switching cost, and customer involvement within the context of relational governance mechanism and the social exchange theory.

Design/methodology/approach

The authors use survey data from 214 Chinese manufacturing firms and employ the structural equation model to verify the conceptual model.

Findings

Relational governance benefits customer involvement. Transaction-specific investment mediates the relationship between trust and commitment of suppliers. Switching costs negatively moderate the relationship between suppliers’ trust and customer involvement, but positively moderate the relationship between suppliers’ commitment and customer involvement.

Research limitations/implications

The authors focus on two key elements of relationship, namely, trust and commitment of suppliers, but neglect other relational factors, such as relational norms and interdependence.

Originality/value

These findings broaden the understanding and present new directions for the implementation of customer involvement from the perspective of relational governance and social exchange theory.

Details

Industrial Management & Data Systems, vol. 115 no. 6
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 1 September 1998

Jeffrey K. Liker, Rajan R. Kamath and S. Nazli Wasti

This paper examines supplier involvement in design based on survey data from 145 Japanese, 189 US and 87 UK automotive component suppliers. First, cross‐national…

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3967

Abstract

This paper examines supplier involvement in design based on survey data from 145 Japanese, 189 US and 87 UK automotive component suppliers. First, cross‐national differences in the degree of supplier involvement are examined. Second, regression analysis is used to identify factors which predict high or low levels of supplier involvement in design. Third, the effects of supplier involvement in product development on the degree to which products are designed for manufacturability are assessed. The data show that, contrary to much of the literature that suggests the highest levels of supplier involvement in design are in Japan, suppliers in the USA and UK are more likely to report greater influence on product design decisions, earlier involvement and more frequent communications with customers about design. Moreover, manufacturing planning and design begin later, as a proportion of the development cycle, in Japan than in the USA and the UK. Regression analysis shows that involving suppliers early and giving them influence over design is associated with greater contributions of suppliers to cost reduction, quality improvement and design for manufacturability. Suppliers are given the greatest influence and communication is most intensive for the design of complex subsystems and new designs, and this does not vary by country.

Details

International Journal of Quality Science, vol. 3 no. 3
Type: Research Article
ISSN: 1359-8538

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Article
Publication date: 1 April 2003

B.S. Sahay

As global markets grow increasingly efficient, competition no longer takes place between individual businesses, but between entire supply chains. Collaboration can provide…

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11419

Abstract

As global markets grow increasingly efficient, competition no longer takes place between individual businesses, but between entire supply chains. Collaboration can provide the competitive edge that enables all the business partners in a supply chain to prevail and grow. This paper presents a framework for customer‐supplier collaboration that facilitates effective and efficient supply chain operation. The paper reveals that the level of involvement of customers and suppliers differs across different supply chain processes and also across different sectors. While the involvement of customers is high in demand management and product development, the involvement of suppliers is high in transportation and inventory management processes. The paper also reveals that about 50 percent of the organizations surveyed indicate that suppliers and customers have little or virtually no role in the demand management, inventory management, and product development processes.

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Article
Publication date: 6 May 2014

Taiwen Feng and Gang Zhao

The purpose of this paper is to examine the effects of top management support (TMS) and inter-organizational relationships (IORs) on external involvement (EI), and their…

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1561

Abstract

Purpose

The purpose of this paper is to examine the effects of top management support (TMS) and inter-organizational relationships (IORs) on external involvement (EI), and their differences across different ownerships.

Design/methodology/approach

To test the research hypotheses, structural equation modeling was conducted using data from 176 Chinese manufacturing firms.

Findings

TMS enhances relationship with customers and relationship with suppliers. Relationship with customers increases the degree of customer involvement, while relationship with suppliers increases the degree of supplier involvement. In addition, TMS improves customer involvement while does not improve supplier involvement directly. A further analysis reveals that the relationship between TMS and supplier involvement is partially mediated by relationship with suppliers in Chinese-controlled firms, whereas it is completely mediated by relationship with suppliers in foreign-controlled firms. Moreover, the effect of relationship with suppliers on supplier involvement is stronger in foreign-controlled firms than in Chinese-controlled firms.

Research limitations/implications

This study employed perceptual data from a single respondent in each firm. In addition, the data used in this study were collected from one side of the dyad: the manufacturers.

Practical implications

Both Chinese-controlled and foreign-controlled firms should get support from top management and develop close relationship with customers and suppliers to improve EI.

Originality value

This study extends our knowledge in the field by examining how TMS and prior history of IORs can improve the degree of EI.

Details

Industrial Management & Data Systems, vol. 114 no. 4
Type: Research Article
ISSN: 0263-5577

Keywords

Content available
Article
Publication date: 9 October 2019

Chengyong Xiao, Boyana Petkova, Eric Molleman and Taco van der Vaart

Technology uncertainty poses significant challenges to manufacturers, as rapid changes in product and/or process standards and specifications can disrupt the smooth flow…

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3586

Abstract

Purpose

Technology uncertainty poses significant challenges to manufacturers, as rapid changes in product and/or process standards and specifications can disrupt the smooth flow of materials in extended supply chains. Practitioners and researchers alike who take a relational perspective widely regard supplier involvement as a potentially effective strategy to cope with technology uncertainty, as focal manufacturers can tap into their upstream supply networks for complementary resources and capabilities. However, the literature lacks a nuanced understanding of the supplier involvement processes. Specifically, the role of resource dependence for supplier involvement has yet to be systematically understood. To fill this gap, this study aims to combine the relational perspective with the resource-dependence perspective to explore how buyer dependence, supplier dependence and buyer–supplier interdependence influence buyers’ decision-making on tapping into upstream supply networks for coping with technology uncertainty.

Design/methodology/approach

To test the hypotheses, a survey is conducted among Dutch firms with more than 50 employees in the discrete manufacturing industries (ISIC 28-35), resulting in a sample of 125 manufacturers.

Findings

First, there is a significantly positive relationship between technology uncertainty and supplier involvement, giving support to the expectation that buyers are indeed involving their key suppliers in the product/process design and improvement, as a response to technology uncertainty. Second, buyer dependence and interdependence are found to be positively moderating the relationship between technology uncertainty and supplier involvement. In contrast, supplier dependence has a negative moderating effect on the baseline relationship.

Research limitations/implications

The authors contribute to a relational view on buyer–supplier relationships by showing that the validity of this view, in the context of technology uncertainty, is contingent on the resource dependence between buyers and suppliers, and the authors contribute to the supply chain management literature more generally by combining a relational perspective with a resource-dependence perspective.

Practical implications

The findings provide several nuanced insights into the effect of resource dependence (buyer dependence, supplier dependence and interdependence) on supplier involvement for coping with technology uncertainty.

Originality/value

This study contributes to the supply chain management research by going beyond the benefits of supplier involvement and highlights the circumstances under which supplier involvement is likely to occur.

Details

Supply Chain Management: An International Journal, vol. 24 no. 6
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 11 June 2018

Colin C.J. Cheng and Dennis Krumwiede

Drawing on complementarity theory, the purpose of this study is to posit that social media use enhances the effect of supplier involvement on new product development (NPD…

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1518

Abstract

Purpose

Drawing on complementarity theory, the purpose of this study is to posit that social media use enhances the effect of supplier involvement on new product development (NPD) performance, while two key firm capabilities further enhance the moderating effect of social media use: market and technological knowledge-processing capabilities.

Design/methodology/approach

To test the hypotheses, the authors used a longitudinal survey of 367 firms, from seven major manufacturing industries: information technology (22.1 per cent), automotive industry (19.6 per cent), chemicals (18.2 per cent), textiles (13.3 per cent), machinery (12.5 per cent), energy (10.1 per cent) and others (4.1 per cent).

Findings

The results support the expectation that social media use and two firm capabilities (market and technological knowledge-processing capabilities) enhance the effect of supplier involvement on NPD performance in terms of product innovativeness, market performance and financial performance. Interestingly, post-hoc analyses indicate that supplier involvement has an inverted U-shaped relationship with product innovativeness. In addition, social media use not only strengthens the positive effect of, but also alleviates the negative effect of, supplier involvement in product innovativeness.

Research limitations/implications

The findings of this study provide new evidence that supply chain members’ use of social media better enables them to enhance their innovation performance with supplier involvement.

Practical implications

This study provides practical direction to help manufacturing managers enhance innovation performance outcomes of supplier involvement.

Originality/value

This study makes an original contribution to the supply chain literature by empirically demonstrating the key enablers that increase the efficacy of supplier involvement.

Details

Supply Chain Management: An International Journal, vol. 23 no. 3
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 12 February 2021

Yuan Wang and Jie Yang

This paper focusses on the factors to sustainable product development (SNPD) projects success. More specifically, it aims to explore and understand the role of supplier

Abstract

Purpose

This 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/approach

A 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.

Findings

The 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/value

Sustainable 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.

Details

International Journal of Managing Projects in Business, vol. 14 no. 4
Type: Research Article
ISSN: 1753-8378

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Article
Publication date: 25 February 2021

Néstor F. Ayala, Paolo Gaiardelli, Giuditta Pezzotta, Marie Anne Le Dain and Alejandro G. Frank

The 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…

Abstract

Purpose

The 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/approach

Three 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.

Findings

Companies 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/value

The 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.

Details

Journal of Manufacturing Technology Management, vol. 32 no. 5
Type: Research Article
ISSN: 1741-038X

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Article
Publication date: 19 July 2018

Debora Bettiga and Federica Ciccullo

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…

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1120

Abstract

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.

Details

Business Process Management Journal, vol. 25 no. 2
Type: Research Article
ISSN: 1463-7154

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Article
Publication date: 23 August 2013

Taiwen Feng, Tongzheng Li, Linyan Sun and Dan Wang

The purpose of this paper is to propose a business model related to NPD for improving performance by testing the relationship between external involvement and operational…

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1374

Abstract

Purpose

The purpose of this paper is to propose a business model related to NPD for improving performance by testing the relationship between external involvement and operational performance, as well as the mediating role of internal integration.

Design/methodology/approach

To test the research hypotheses about the relationships above, survey data were collected from 176 Chinese manufacturing companies. Structural equation modeling was used to examine the hypotheses.

Findings

The results indicate that both customer and supplier involvement have significant effects on internal integration. Internal integration has a significant effect on operational performance. In addition, internal integration partially mediates the relationship between customer and supplier involvement and operational performance.

Research limitations/implications

First, the relative effectiveness of external involvement may be contingent on various factors (e.g. involvement timing and innovation strategy). Second, the authors did not identify the different effects of external involvement practices on different dimensions of operational performance. Finally, the hypothesized relationships may be different across different firm sizes, ownership types, industries or regions.

Practical implications

Customer and supplier involvement are both important for improving organizational performance, which provides guidelines for managers to innovate business model in the product development process. Moreover, this study suggests that firms will not be able to capitalize on the capability of their customers or suppliers unless they are able to build high level of internal integration.

Originality/value

This study provides support for both organizational learning theory and information processing theory. This study also contributes to external involvement literature by examining both the direct and indirect effects of external involvement on operational performance.

Details

Chinese Management Studies, vol. 7 no. 3
Type: Research Article
ISSN: 1750-614X

Keywords

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