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Early supplier involvement to reduce product failure in new product development

Plyushkina, Anastasiya (2015) Early supplier involvement to reduce product failure in new product development.

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Abstract:Early supplier involvement (ESI) has been reported to have numerous benefits in new product design, especially when it comes to reducing cycle times and improving design outcomes. The investigation of this article builds on this notion and expands further on a recent stream of research suggesting that it is useful to look at ESI from an agency theory perspective and how it may reduce supply risk. Specifically, this research utilizes a cross-sectional method of study in order to examine the way ESI affects project costs by mitigating outcome uncertainty in new product development projects. Previous research suggests that by involving suppliers during the early stages of the NPD, the purchasing firm is able to lower the project costs by reducing the level of outcome uncertainty. Five interviews were carried out at five different manufacturing firms in order to test the proposed relationship. The findings of this research do support the proposed relationship, however, they also show conflicting results. Future research propositions have been presented at the end of this paper in order to try and clarify the ambiguity in the research findings.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/67450
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