A longitudinal analysis of supplier involvement in buyers' new product development: Working relations, inter-dependence, co-innovation, and performance outcomes

Sengun Yeniyurt, John W. Henke, Goksel Yalcinkaya

Research output: Contribution to journalArticlepeer-review

93 Scopus citations

Abstract

Drawing on social exchange theory, this study develops a longitudinal theoretical framework of supplier participation in buyers' new product development (NPD) activities. The study focuses on the longitudinal temporal dynamics of supplier involvement in buyers' new product development and postulates that working relations and inter-dependence impact suppliers' attitudes toward co-innovation and suppliers' co-innovation behaviors. Applying this framework to a 10-year longitudinal dataset from the North American automotive industry, the drivers of the escalation of supplier involvement in buyers' NPD over time and the effect of this involvement on innovation performance, buyer sales performance, and supplier sales performance are identified. The results indicate that buyer-supplier communication, suppliers' anticipated long-term returns, suppliers' trust of a buyer, and supplier-buyer inter-dependence all play a significant role in changing supplier attitudes toward co-innovation and supplier involvement in a buyer's NPD. Further, the study also shows that supplier involvement in buyer new product development is mutually beneficial for both the buyer and the supplier as it increases performance of both parties. Performance returns are actually greater for suppliers than for buyers. As such, this study contributes to both relationship management and new product development literature streams, as well as providing practical direction to manufacturers as to how they can increase suppliers' involvement in their NPD to benefit both parties.

Original languageEnglish (US)
Pages (from-to)291-308
Number of pages18
JournalJournal of the Academy of Marketing Science
Volume42
Issue number3
DOIs
StatePublished - May 2014

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Economics and Econometrics
  • Marketing

Keywords

  • Co-innovation
  • Longitudinal data
  • New product development
  • Supplier NPD involvement
  • Supply chain management

Fingerprint

Dive into the research topics of 'A longitudinal analysis of supplier involvement in buyers' new product development: Working relations, inter-dependence, co-innovation, and performance outcomes'. Together they form a unique fingerprint.

Cite this