TY - JOUR
T1 - Supplier development responsibility and NPD project outcomes
T2 - The roles of monetary quantification of differences and supporting-detail gathering
AU - Wynstra, Finn
AU - Anderson, James C.
AU - Narus, James A.
AU - Wouters, Marc
N1 - Publisher Copyright:
© 2012 Product Development & Management Association.
PY - 2012/12
Y1 - 2012/12
N2 - Firms increasingly rely on suppliers to perform tasks in new product development (NPD). Research has only recently begun to focus on the processes to manage this supplier development responsibility, and has hardly investigated how firms collect and analyze information regarding the cost and performance of alternative supplier offerings. Our study addresses this gap, through a field survey among 144 paired samples of project leaders and cost analysts involved in the same NPD projects. On the basis of literature and qualitative research, we conceptualize a substantive model. We first use a substantive validity assessment to vet the measures for the proposed constructs. We then test the substantive model with structural equation modeling using a multiple-sample analysis. The results strongly show that monetary quantification of differences and detail gathering play significant roles in successfully leveraging supplier development responsibility. The findings support the hypothesis that the extent of development responsibility that suppliers have leads the development team to a more focused monetary quantification of the differences in alternative supplier offerings. Monetary quantification of differences has a significant, positive effect on the extent of supporting-detail gathering and on the development speed of the project, whereas supporting-detail gathering has a significant, positive effect on the product advantage of the new product as well as development speed. These findings are robust across the two functional perspectives. Our study complements the literature on interfirm control and monitoring by demonstrating the effects of selective and focused output controls.
AB - Firms increasingly rely on suppliers to perform tasks in new product development (NPD). Research has only recently begun to focus on the processes to manage this supplier development responsibility, and has hardly investigated how firms collect and analyze information regarding the cost and performance of alternative supplier offerings. Our study addresses this gap, through a field survey among 144 paired samples of project leaders and cost analysts involved in the same NPD projects. On the basis of literature and qualitative research, we conceptualize a substantive model. We first use a substantive validity assessment to vet the measures for the proposed constructs. We then test the substantive model with structural equation modeling using a multiple-sample analysis. The results strongly show that monetary quantification of differences and detail gathering play significant roles in successfully leveraging supplier development responsibility. The findings support the hypothesis that the extent of development responsibility that suppliers have leads the development team to a more focused monetary quantification of the differences in alternative supplier offerings. Monetary quantification of differences has a significant, positive effect on the extent of supporting-detail gathering and on the development speed of the project, whereas supporting-detail gathering has a significant, positive effect on the product advantage of the new product as well as development speed. These findings are robust across the two functional perspectives. Our study complements the literature on interfirm control and monitoring by demonstrating the effects of selective and focused output controls.
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U2 - 10.1111/j.1540-5885.2012.00948.x
DO - 10.1111/j.1540-5885.2012.00948.x
M3 - Article
AN - SCOPUS:84892383720
SN - 0737-6782
VL - 29
SP - 103
EP - 123
JO - Journal of Product Innovation Management
JF - Journal of Product Innovation Management
ER -