New Product Development in an Emerging Economy: Analysing the Role of Supplier Involvement Practices by Using Bayesian Markov Chain Monte Carlo Technique

Abstract

The research question is whether the positive relationship found between supplier involvement practices and new product development performances in developed economies also holds in emerging economies. The role of supplier involvement practices in new product development performance is yet to be substantially investigated in the emerging economies (other than China). This premise was examined by distributing a survey instrument (Jayaram’s (2008) published survey instrument that has been utilised in developed economies) to Malaysian manufacturing companies. To gauge the relationship between the supplier involvement practices and new product development (NPD) project performance of 146 companies, structural equation modelling was adopted. Our findings prove that supplier involvement practices have a significant positive impact on NPD project performance in an emerging economy with respect to quality objectives, design objectives, cost objectives, and “time-to-market” objectives. Further analysis using the Bayesian Markov Chain Monte Carlo algorithm, yielding a more credible and feasible differentiation, confirmed these results (even in the case of an emerging economy) and indicated that these practices have a 28% impact on variance of NPD project performance. This considerable effect implies that supplier involvement is a must have, although further research is needed to identify the contingencies for its practices.

Firm Sustainability Performance Index Modeling

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Supply Chain Involvement in Engagement Verification of Marketing and Operational Collaboration

“…While in the creation of knowledge of competitive markets, supply chain engagement becomes an efficient, operational and interrelated process of information to organizations. As in Feng & Wang (2013) research, supply engagement is related to customer and supplier engagement positively, but it can improve performance (Kanapathy, Khong, & Dekkers, 2014;Feng & Zhao, 2014). We hope this discussion can be a future reference to further research in the supply chain's engagement to business performance especially in small and medium-sized firms that have implemented business in two marketing systems (offline and online).…”

Information Systems for Early Supplier Involvement in Brazilian Automotive Supply Chains

“…Suppliers' contributions to solutions that increase process productivity and improve manufacturability allow for cost reduction (Mcivor & Humphreys, 2004;Luo et al, 2010). Proving these points, Kanapathy et al (2014) conducted a survey with 146 manufacturing companies in an emerging economy and demonstrated that supplier involvement has a significantly positive impact on NPD project performance in terms of quality objectives, design objectives, cost objectives and "time-to-market" objectives. Dekkers et al (2013) address the interface between product design and manufacturing and highlight the importance of supplier involvement and articulation through information and communication technologies (ICT), both hardware and software.…”

“…In addition to CAD systems, other important systems that, together with CAD, form the concept of Computer-Integrated Manufacturing (CIM) are the Computer-Aided Manufacturing (CAM) and Computer-Aided Engineering (CAE). These systems, when mainly used together with data shared by SC members, provide a significant competitiveness increase for involved companies (Figueiredo & Romeiro Filho, 2011) and can truly represent a shift paradigm in NPD (Kanapathy et al, 2014).…”