Purchasing involvement in technologically uncertain new product development projects: Challenges and implications

Ole S. Mikkelsen*, Thomas E. Johnsen

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

This paper explores an emerging field of research within purchasing that concerns the changing role of purchasing when companies embark on technologically uncertain NPD projects. Where existing research has examined the role of purchasing in facilitating early supplier involvement in new product development, little research has been done to date on how purchasing's role might change when facing technologically uncertain NPD that require new capabilities and new technology. Based on an in-depth case study of a technologically uncertain NPD project in the passenger ship rescue equipment industry, the paper sheds light on how supplier involvement in NPD projects with a high degree of technological uncertainty impacts on a company's sourcing strategies and the challenges this poses for purchasing. Based on the case study findings, we propose a) that early purchasing involvement in technologically uncertain NPD projects requires a mature purchasing organization that possesses competences to interact effectively with R&D and b) that involving a new supplier from a different industry in NPD projects characterized by technological uncertainty requires a leap of faith from both innovating firm and supplier. The paper contributes to research in early supplier involvement in new product development, in particular the thin branch within this body of literature that now focuses on early purchasing involvement.

Original languageEnglish
Article number100496
JournalJournal of Purchasing and Supply Management
Volume25
Issue number3
Number of pages12
ISSN1478-4092
DOIs
Publication statusPublished - Jun 2019

Fingerprint

Purchasing
Product development
Industry
Development projects
New product development
Ships

Keywords

  • Case study
  • Innovation
  • New product development
  • Purchasing
  • Sourcing

Cite this

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title = "Purchasing involvement in technologically uncertain new product development projects: Challenges and implications",
abstract = "This paper explores an emerging field of research within purchasing that concerns the changing role of purchasing when companies embark on technologically uncertain NPD projects. Where existing research has examined the role of purchasing in facilitating early supplier involvement in new product development, little research has been done to date on how purchasing's role might change when facing technologically uncertain NPD that require new capabilities and new technology. Based on an in-depth case study of a technologically uncertain NPD project in the passenger ship rescue equipment industry, the paper sheds light on how supplier involvement in NPD projects with a high degree of technological uncertainty impacts on a company's sourcing strategies and the challenges this poses for purchasing. Based on the case study findings, we propose a) that early purchasing involvement in technologically uncertain NPD projects requires a mature purchasing organization that possesses competences to interact effectively with R&D and b) that involving a new supplier from a different industry in NPD projects characterized by technological uncertainty requires a leap of faith from both innovating firm and supplier. The paper contributes to research in early supplier involvement in new product development, in particular the thin branch within this body of literature that now focuses on early purchasing involvement.",
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Purchasing involvement in technologically uncertain new product development projects : Challenges and implications. / Mikkelsen, Ole S.; Johnsen, Thomas E.

In: Journal of Purchasing and Supply Management, Vol. 25, No. 3, 100496, 06.2019.

Research output: Contribution to journalJournal articleResearchpeer-review

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