Supplier involvement in new product development projects: dimensionality and contingency effects

Abstract

In contrast to previous literature, we hypothesize supplier involvement in new product development (NPD) projects to be multidimensional in nature and test this assumption using data from a large sample of NPD projects. We also test the contingent influence of supplier involvement on NPD project performance. The results supported the claim of multidimensionality of supplier involvement. Three distinct factors–communication and information sharing, design involvement and infrastructure–comprising supplier involvement were found. These factors were significantly related to one or more measures of NPD project performance. The study also found support for the contingent influence of market stability on the supplier involvement–NPD project performance relationships. The results suggest that managers ought to consider adopting different bundles of supplier involvement practices that depend on the level of stability in markets and also on the type of NPD performance objective that is being considered.

Keywords:

• New product development
• Contingency theory
• Supplier involvement