Supplier Opportunism in Buyer–Supplier New Product Development: A China‐U.S. Study of Antecedents,Consequences, and Cultural/Institutional Contexts

Collaborating with a supplier in a buying firm's new product development (NPD) project is commonly advocated and adopted, but does not always improve project performance. Some pre‐existing collaboration contexts, such as buyer–supplier NPD projects, are especially exposed to supplier opportunism due to the uncertain nature of the collaboration process. Adopting agency theory and transaction cost theory perspectives, we examine: (i) contextual antecedents and project consequences of supplier opportunism and (ii) if these causal influences vary in different cultural and institutional contexts. Using a survey sample of 214 United States (U.S.) and 212 Chinese buying firms’ responses about buyer–supplier NPD projects, we find that supplier opportunism is significantly influenced by the task and relational contexts. We also show that supplier opportunism damages both design quality and efficiency, two aspects of project performance. When comparing U.S. to China, we find that task and relational contexts have a greater impact on supplier opportunism in the U.S., but design efficiency is less hurt by supplier opportunism there. Finally, we show challenges of preventing supplier opportunism in certain NPD collaboration contexts, and offer solutions for overcoming these challenges.     

The impact of leader personality on new product development teamwork and performance: The moderating role of uncertainty

We examined the affect of leader personality on new product development (NPD) project performance under differing conditions of uncertainty. Our model posits teamwork as a mediating variable between leader personality and NPD performance. We hypothesized that the personality variable of openness would have a stronger influence on teamwork and NPD performance when uncertainty was high, and that the personality variables of extraversion, conscientiousness and stability would have a stronger indirect influence on NPD performance through teamwork when uncertainty was low. We used structural equation modeling to test two models of the influence of personality. In our study of 143 development projects, we support the importance of teamwork as a process variable linking leader personality to NPD performance and confirm that the effects of leader personality on these criteria depend on the level of uncertainty operating in NPD projects, thus substantiating all our hypotheses. Recommendations to re-consider hiring criteria and training for NPD project leaders are provided.     

The Role of Existing Knowledge in New Product Innovativeness and Performance

The purpose of this study is to provide a more thorough assessment of the link between existing knowledge and organizational performance than currently exists in the literature. We identify factors and processes influential in the management of existing knowledge within the areas of learning culture, knowledge building, and organizational performance. Through structural equation modeling, a more thorough examination is given of the role existing knowledge plays in new product performance and innovativeness. In completing this task, we provide insight into the subprocesses of knowledge building by evaluating the influence of shared interpretation and two aspects of information acquisition—efficiency and degree of innovativeness of newly acquired information—on new product development (NPD) outcomes. Included in the examination of these processes are organizational culture and structure characteristics believed to influence knowledge management success.     

Collaborative Product Development: The Effect of Project Complexity on the Use of Information Technology Tools and New Product Development Practices

Collaboration is an essential element of new product development (NPD). This research examines the associations between four types of information technology (IT) tools and NPD collaboration. The relationships between NPD practices and NPD collaboration are also examined. Drawing on organizational information processing theory, we propose that the relationships between IT tools and NPD collaboration will be moderated differently by three project complexity dimensions, namely, product size, project novelty, and task interdependence, due to the differing nature of information processing necessitated by each project complexity dimension. Likewise, the moderation effects of the project complexity dimensions on the relationship between NPD practices and NPD collaboration will also be different. We test our hypotheses using data from a sample of NPD projects in three manufacturing industries. We find that IT tools are associated with collaboration to a greater extent when product size is relatively large. In contrast, IT tools exhibit a smaller association with collaboration when project novelty or task interdependence is relatively high. NPD practices are found to be more significantly associated with NPD collaboration under the contingency of high project novelty or high task interdependence. The findings provide insights about circumstances where several popular IT tools are more likely to facilitate collaboration, thus informing an NPD team's IT adoption and use decisions.     

Completing projects on-time: how project acceleration affects new product development

How do accelerated time goals affect the execution and completion of new product development (NPD) projects? This research addresses this question as it relates to project content, project leadership, and aspects of design integration. Research data were drawn from a survey of 131 completed NPD projects from firms representing a wide variety of manufacturing industries. The results of an analysis of both intentionally accelerated and normally-paced projects suggest that project acceleration interacts with project content, leadership, and integration variables to affect on-time performance differently across NPD project types, sometimes in surprising ways. Two primary effects are posited to explain these inconsistent effects. First, NPD acceleration tends to increase the difficulty of the project by introducing new procedures and by reducing schedule slack. These changes are thought to exacerbate project content factors and to raise the value of NPD leadership and integration techniques. At the same time, an intentional acceleration strategy is thought to signal increased priority for the project, causing development personnel to make more careful decisions, and to more effectively implement new technologies and techniques. The article discusses the implications of the findings for future research and practice.     

New product development and the effect of supplier involvement

This study investigates the problem of new product development (NPD) under supplier involvement (SI) program in a supply chain comprising a single supplier and a single buyer. The buyer, the Stackelberg leader in the supply chain, configures the design quality of the product and determines the extent of SI – the degree to which the supplier is involved in the NPD project – in order to utilize the complementary capability of the supplier. The supplier in charge of production determines the level of conformance quality to design specifications. Using the principal-agent paradigm, we propose an analytical framework that investigates the role of the SI program in the NPD project, incorporating essential factors such as the R&D cost, the transactional inefficiency, the production cost, and the transfer payment. We provide rich managerial insights into the decentralized NPD practice by analyzing the equilibrium behaviors of major decision variables (design quality, conformance quality and SI extent) with respect to internal and external environmental conditions.     

Managing Cross-Functional Cooperation for New Product Development Success

This article focuses on conditions that make cross-functional cooperation in new product development projects more or less productive. We investigate 40 NPD projects in the consumer electronics and pharmaceuticals industries in which R&D and marketing played key roles. We find that the contributions of cross-functional cooperation to NPD success are contingent on the type of market and technology opportunities being pursued. More specifically, our results suggest that when a project team pursues an opportunity characterized by high levels of technological and market risks, investments in high levels of cross-functional cooperation are warranted to increase NPD success. We do not find evidence that cross-functional cooperation moderates the relationship between the openness of an NPD project towards external information and knowledge and its performance. This suggests that less integrated project teams could achieve similar results as more integrated teams in terms of processing large quantities of information and knowledge without incurring the costs that may stem from high levels of cross-functional cooperation.     

The Differential and Contingent Impact of Concurrency on New Product Development Project Performance: A Holistic Examination*

This article comprehensively examines how the four facets of new product development (NPD) concurrency, consisting of process and product concurrency groupings, influence NPD project performance under the five contextual conditions of (i) location of product in family stream, (ii) project size, (iii) stage in the product life cycle, (iv) innovativeness of the product, and (v) predictability of market demand. Using data from a large sample of NPD projects in multiple industries, there is support for this hypothesized four‐faceted structure of concurrency, consisting of process and product concurrency groupings, thereby contributing new knowledge to the concurrency literature. All four facets of concurrency display a contingent impact on NPD project performance, even though individual effects vary according to the specific contextual variable under consideration. In particular, the process concurrency facet of dynamic iterative routines was universally effective across all five contextual variables, while the product concurrency facet of cross‐functional coordination was effective in significantly influencing at least one NPD project measure. This article also reports similar, but less strong, contingency patterns, with respect to the process concurrency facet of the implementation of downstream coordination and the product concurrency facet of the use of computer‐based integrated design tools. Theoretical and practical implications of our results are also offered.     

Task partitioning in new product development teams: A knowledge and learning perspective

R&D alliances and outsourcing elements of the new product development process are now commonplace practices among many firms. However, little previous work has examined how these organizational choices influence project knowledge and learning. Based on a comparison of three new product development projects in the software industry, this paper examines how task partitioning in the project influences learning and knowledge development within the firm. The paper suggests that internal development projects encourage synthetic learning and development of architectural and tacit knowledge; in contrast, outsourcing and joint ventures encourage analytic learning and development of component and explicit knowledge.     

New product development in turbulent environments: Impact of improvisation and unlearning on new product performance

Team learning is vital for organizations in order to compete in fast-paced environments. However, the ways learning can be effective in such environments warrents research, especially for teams developing new products under rapidly changing technological and market conditions. Interestingly, recent new product development (NPD) literature demonstrates the essential role of improvisation (i.e., planning and executing any action simultaneously) and unlearning (i.e., changes in team beliefs and project routines) for effective learning and performing under turbulent conditions. However, the combined effect of team improvisation and unlearning on new product success (NPS) has largely been ignored. This paper investigates the nomological relations among team improvisation and unlearning, new product success, and environmental turbulence, and contributes to the literature on NPD team learning, and on team flexibility under turbulent conditions. By examining 197 new product-development projects, we found that (1) environmental turbulence positively affects team unlearning, (2) team unlearning concurrently stimulates team improvisation, (3) team improvisation positively impacts new product success by utilizing/implementing new knowledge acquired by unlearning and improvisation. We further discuss the theoretical and managerial implications of our conclusions.     

Understanding the Elusive Black Box of Dynamic Capabilities

A major challenge for managers in turbulent environments is to make sound decisions quickly. Dynamic capabilities have been proposed as a means for addressing turbulent environments by helping managers extend, modify, and reconfigure existing operational capabilities into new ones that better match the environment. However, because dynamic capabilities have been viewed as an elusive black box, it is difficult for managers to make sound decisions in turbulent environments if they cannot effectively measure dynamic capabilities. Therefore, we first seek to propose a measurable model of dynamic capabilities by conceptualizing, operationalizing, and measuring dynamic capabilities. Specifically, drawing upon the dynamic capabilities literature, we identify a set of capabilities—sensing the environment, learning, coordinating, and integrating—that help reconfigure existing operational capabilities into new ones that better match the environment. Second, we propose a structural model where dynamic capabilities influence performance by reconfiguring existing operational capabilities in the context of new product development (NPD). Data from 180 NPD units support both the measurable model of dynamic capabilities and also the structural model by which dynamic capabilities influence performance in NPD by reconfiguring operational capabilities, particularly in higher levels of environmental turbulence. The study's implications for managerial decision making in turbulent environments by capturing the elusive black box of dynamic capabilities are discussed.     

Technology‐Based New Product Development Partnerships*

Hypotheses were developed to capture the dynamic capabilities that result from interfirm partnerships during the joint new product development (NPD) process—the ability to build, integrate, and reconfigure existing resources to adapt to rapidly changing environments. These capabilities, in turn, were proposed to have a positive impact on NPD performance outcomes: (a) proportion of new product success and (b) superior new product commercialization. In contexts where the locus of innovation is rapidly changing, the impact of interfirm NPD dynamic capabilities was hypothesized to be diminished in high‐technology contexts, especially for buyers (original equipment manufacturers) and to a lesser extent for suppliers. Still, technology‐based interfirm NPD partnerships were predicted to ultimately outperform low‐technology ones in both NPD performance outcomes. Finally, information technology (IT) support for NPD was hypothesized to influence the interfirm NPD partnership's dynamic capabilities. Using survey data from 72 auto company managers and their suppliers, the proposed model in which IT support for NPD influences the success of interfirm NPD partnerships through the mediating role of interfirm NPD partnership dynamic capabilities in high‐ and low‐technology contexts was generally supported. The results shed light on the nature of technology‐based interfirm NPD partnerships and have implications for their success. Theoretical and managerial implications are discussed.     

网络环境下客户参与对产品开发绩效的影响研究-以我国软件企业为例

本研究以网络环境为背景,回顾了客户参与和产品开发绩效方面的研究成果.根据对中国软件企业的调查结果,利用结构方程模型(SEM),分析了客户网上参与和产品开发绩效之间的关系.研究发现:虚拟客户参与平台(VCE)的设计特征、客户知识管理能力、客户网上参与强度都对产品开发绩效有直接正向影响;虚拟客户参与平台的设计特征还通过客户网上参与强度、客户知识管理能力对产品开发绩效有间接正向影响,而客户特性和产品开发绩效之间关系不显著.研究结论为提高企业产品开发绩效提供了实践指导意义.     

On the Same Page? How Asymmetric Buyer–Supplier Relationships Affect Opportunism and Performance

Research on buyer–supplier relationships (BSRs) has often focused on only one side of the relationship and, thus, has tended to overlook asymmetries. Yet, a buyer (supplier) may often deal with a bigger supplier (buyer) or one that has higher levels of trust, respect, and reciprocity. Therefore, we examined how two types of asymmetries—size and relational capital—affect perceived opportunism and performance. We used dyadic data from 106 buyers and their matched suppliers gathered from a survey and an archival database. The results demonstrate that the degree and direction of both asymmetries affect the BSR. Our results also reveal that an imbalance of relational capital in a firm's favor may have the opposite effect from that intended. In other words, the firm's counterpart perceives more, rather than less, firm opportunism. The results also suggest that a buyer observes lower benefits in the presence of size asymmetry, whereas the supplier's perception of benefits is unaffected. Thus, our research represents a significant step forward in understanding BSRs and asymmetries by (i) bringing attention to two key asymmetries inherent in BSRs and (ii) showing that these asymmetries are not unidirectional in their influence on perceived opportunism and performance.     

Realizing the Need for Rework: From Task Interdependence to Social Networks

Design rework is a core phenomenon in new product development (NPD). Yet carrying out design rework presupposes recognizing the need for it. I characterize the types of interpersonal knowledge transfer that help developers realize the need for design rework in NPD. As predicted by the NPD literature, I find that individuals who interact frequently with colleagues to address their task interdependences are more likely to realize the need for rework. I also learn that interacting with colleagues who have different expertise in process‐related knowledge (as opposed to product‐related knowledge) facilitates realizing the need for rework. However, to develop a deeper understanding of how individuals recognize the need for rework when interacting with others, we must expand our views beyond task interdependence and expertise‐related factors. In particular, organizational variables—both formal and informal—play a significant role. With respect to formal hierarchical structures, actors of superior rank are less likely to realize the need for rework regardless of whether or not their interacting partner is of superior rank; however, actors of superior rank are more likely to trigger realizing the need for rework when interacting with partners of subordinate rank. By examining an organization's informal structure, I discover that the social “embeddedness” of developers (i.e., the energy and attention invested in a dyadic relationship) significantly influences their propensity to realize the need for rework. Several hypotheses are tested in a sociometric study conducted within the development department of a software company, and I discuss the implications for behavioral operations in NPD.     

Work Design and Integration Glitches in Globally Distributed Technology Projects

In a technology project, project integration represents the pooling together of complete, interdependent task modules to form a physical product or software delivering a desired functionality. This study develops and tests a conceptual framework that examines the interrelationships between the elements of work design, project integration challenges, and project performance. We identify two distinct elements of work design in technology projects: (i) the type of project organization based on whether a technology project spans a firm boundary (Domestic‐Outsourcing) or a country boundary (Offshore‐Insourcing) or both boundaries (Offshore‐Outsourcing) or no boundaries (Domestic‐Insourcing), and (ii) the joint coordination practices among key stakeholders in a technology project—namely, Onsite Ratio and Joint‐Task Ownership. Next, we measure the effectiveness of project integration using integration glitches that capture the incompatibility among interdependent task modules during project integration. Based on analysis of data from 830 technology projects, the results highlight the differential effects of distributed project organizations on integration glitches. Specifically, we find that project organizations that span both firm and country boundaries (Offshore‐Outsourcing) experience significantly higher levels of integration glitches compared to domestic project organizations (Domestic‐Outsourcing and Domestic‐Insourcing). The results further indicate that the relationship between project organization type and integration glitches is moderated by the extent of joint coordination practices in a project. That is, managers can actively lower integration glitches by increasing the levels of onsite ratio and by promoting higher levels of joint‐task ownership, particularly in project organization types that span both firm and country boundaries (Offshore‐Outsourcing). Finally, the results demonstrate the practical significance of studying integration glitches by highlighting its significant negative effect on project performance.     

Managing Outsourced Software Projects: An Analysis of Project Performance and Customer Satisfaction

We examine the drivers of project performance and customer satisfaction in outsourced software projects using a proprietary panel dataset. The data cover 822 customer observations related to 182 unique projects executed by an India‐based software services vendor. Adopting a multidisciplinary perspective, we investigate how project planning, team stability, and communication effectiveness impact project performance and customer satisfaction. We delineate the direct and interactive influences of the antecedent variables. We also examine how these influences are moderated by two important project contexts: (a) the nature of software work (maintenance and development vs. testing projects) and (b) project maturity (new vs. mature projects). Among other results, we demonstrate that, when project planning capabilities are high, the positive impact of team stability and communication effectiveness on project performance is even higher. In addition, our results suggest that the impact of communication on project performance is muted when team stability is high. Finally, we also demonstrate that the impact of the antecedent variables on project performance varies with the nature of software work. Our findings offer specific and actionable insights to managers that can help them manage outsourced projects better, and open up new research perspectives in the context of outsourced project management.     

A Hierarchical Product Development Planning Framework

Uncertainty in new product development (NPD) planning embraces market, creative, technological, and process dimensions to a much greater extent than in non‐NPD project planning. Yet, NPD management is becoming increasingly decentralized, both within the firm and across the supply chain. Hence, planning for NPD uncertainty often results in path‐dependent scenarios cutting across the strategic, tactical, and operational levels of planning. To coordinate this resulting complexity, we propose a stochastic hierarchical product development planning framework with multiple recourses, i. e., corrective actions, to maximize performance across a firm's entire NPD program. We also argue the necessity for a fourth planning level, the infrastructural, that reestablishes norms for market projections, technological forecasts, scheduling, and requirements as latent uncertainty in the environment is continually revealed. An illustration from the automotive industry is presented to demonstrate a deployment of our framework. We additionally discuss the applicability of this framework for managing NPD capabilities over time.     

All You Need Is Trust? An Examination of Inter‐organizational Supply Chain Projects

This study examines the antecedents of supply chain project success. We first propose and test a model that describes the role of relationship‐level factors (trust and asymmetric dependence) and project‐level factors (between‐firm communication and within‐firm commitment) in determining supply chain project success. We find that project‐level factors completely mediate the effect of trust on project success. We conclude that trust, despite being a stronger predictor compared to asymmetric dependence, is necessary but not sufficient for supply chain project success. We then proceed to further explore the role of these factors by introducing a categorical scheme that differentiates supply chain projects based on the decision rights configuration of each project. This categorization enables us to explore how relationship‐level and project‐level factors can have different impact on performance based on the characteristics of a supply chain project. The findings offer insights into how to effectively manage supply chain projects and inter‐firm alliances.     

Toward a Typology of Buyer–Supplier Relationships: A Study of the Computer Industry*

Buyer–supplier relationship typologies are useful analytical tools for purchasing managers in managing exchange relationships with suppliers and monitoring their purchasing portfolios. Existing buyer–supplier relationship typologies are mainly focused on either relational contents or power‐dependence and have limited empirical support for their performance implications. In this study, we developed an alternative buyer–supplier relationship typology that integrates both relational content and power‐dependence dimensions, resulting in four generic relationship types: market, power, autonomous‐link, and constrained‐link relationships. We then performed a longitudinal exploratory investigation of eight leading firms in the U.S. computer industry to explore the performance implications of the typology, using a combinatorial qualitative approach that leverages the strengths of case study research, content analysis, and quasi‐experimental design. The results suggest three theoretical propositions. First, the association between the type of buyer–supplier relationships and buyer firm performance varies such that constrained‐link relationships are superior in terms of operational efficiency while autonomous‐link relationships are superior in terms of product innovation. Second, the positive association between buyer–supplier relational contents (i.e., relationalism) and buyer firm operational efficiency is strengthened as the suppliers' dependence on the buyer firm increases. And finally, the positive association between buyer–supplier relationalism and buyer firm product innovation is weakened as the suppliers' dependence on the buyer firm increases.