Why and How to Involve Purchasing in New Product Development?

Holger Schiele*, Erwin Hofman, Bernd Markus Zunk, Justus Eggers

*Corresponding author for this work

Research output: Contribution to journalArticle

Abstract

In new product development (NPD) firms increasingly have to rely on external expertise from suppliers. However, results of early supplier integration have been found to be ambiguous. This research empirically tests the hypothesis that the participation of professional purchasing agents early on in the supplier integration process plays a decisive role to distinguish successful projects. Our sample gave evidence that early supply management integration positively moderated supplier involvement's effect on firm success. Hence, firms may benefit from avoiding supplier integration without professional purchasing management. Still, in many firms the procurement department is not yet integrated in NPD processes early on. Our research identifies four measures those firms applied, in which purchasing got fully embedded in the innovation process: Top-management support, structural differentiation, explicit processes, and a collaborative corporate culture. This finding can serve as blue print for implementing purchasing integration and therewith improve the success of supplier integration in NPD.

Original languageEnglish
Article number2150027
Number of pages45
JournalInternational Journal of Innovation Management (IJIM)
Volume25
Issue number3
DOIs
Publication statusPublished - 2021

Keywords

  • Purchasing and Supply Management
  • New Product Development Process
  • Organizational Integration
  • Management of Technology
  • Purchasing Professionals
  • Innovation Sourcing
  • purchasing
  • procurement
  • supplier early involvement
  • purchasing integration in NPD
  • New product development

ASJC Scopus subject areas

  • Management of Technology and Innovation
  • Business and International Management
  • Strategy and Management

Fields of Expertise

  • Sonstiges

Treatment code (Nähere Zuordnung)

  • Theoretical

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