Managing supplier relationships in a new product development context

Organizations can no longer rely solely on their own resources to innovate and look for strategic interactions beyond their organizational boundaries, allowing them to improve the quality of their own internal resources by investing in core competencies while contracting out other knowledge domains. From a theoretical perspective the focus of research has shifted towards supplier relationship management (SRM) and early supplier involvement in new product development (NPD). Even though much research has been done in these areas, a more comprehensive study investigating the constructs that determine the quality of a relationship still has to be done. Furthermore, the existing research has largely focused either on the role of SRM with regard to NPD performance or on knowledge transfer and its impact on NPD performance. Research encompassing these two important aspects of the NPD process is still lacking. Thirdly, our study expands the field of research beyond the automotive industry, by focusing on consumer product industry. Lastly, how SRM affects knowledge transfer and in turn NPD performance has yet not been researched. Our findings confirm the positive relationship between relationship quality, knowledge transfer and NPD performance. Managing supplier relationships leads to a higher quality relationship which contributes to the performance of NPD projects. Secondly, a total of thirteen constructs have been identified to be decisive for the quality of a relationship. These constructs act on either an individual or organizational level. Our study underlines the importance of supplier relationship management in a NPD context and the developed research model can be used to predict the performance of a NPD project by measuring the quality of the relationship between buyer and supplier on these thirteen constructs