Buyer-Supplier Collaboration in Product Development Projects

Abstract

Previous research on supplier involvement in product development projects has produced contradictory results, with some studies showing a positive relationship, others no relationship, and still others a negative relationship between supplier involvement and project performance. Drawing on data from 124 managers, project leaders, buyer members, and supplier members pertaining to 28 product development projects, the authors find that buyer-supplier collaboration positively relates to product quality, adherence to product cost targets, adherence to development budgets, and adherence to development schedules. Furthermore, their analyses show that communication frequency and intensity has a curvilinear (inverted U-shaped) relationship with project development budget and product cost.