Integrating Suppliers into Green Product Innovation Development: an Empirical Case Study in the Semiconductor Industry

Green innovation has been recognized as one of the key factors to achieve environmental and economic success in markets. Understanding green product innovation development as a result of suppliers' involvement has become a strategic priority for academics and practitioners. This paper aims to explore and understand the role of suppliers in enhancing the manufacturer's ability to successfully carry out green innovation in product development. As a research methodology, a case study approach is employed. Primary data were collected through site visits and extensive interviews with corporate and plant management in Korea. Based on the Korean study, the paper presents following outcomes. First, there is a strong linkage between environmental compliance and green new product developments. Second, there is a strategically close relationship of environmental collaboration between suppliers and the buying company through technological integration. Finally, involving key suppliers in green new product development for environmentally demanding customers and markets can bring both environmental and commercial success. This research provides new insights on supplier involvement and green product innovation development in supply chain management. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.