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Governance of supplier collaboration in technologically uncertain NPD projects
Affiliation:1. Linköping University, Department of Management and Engineering, SE-581 83 Linköping, Sweden;2. Linköping University, Department of Management and Engineering, KITE Research Group, SE-581 83 Linköping, Sweden;1. KEDGE Business School, BP 921, 13288 Marseille Cedex 9, France;2. EMLYON Business School, 23 Av. Guy de Collongue, 69134 Ecully Cedex, France;1. EM-Normandie, 30 rue de Richelieu, 76600 Le Havre, France;2. Corvinus University of Budapest, Fővám tér 8, 1093 Budapest, Hungary;3. Budapest University of Technology and Economics, Magyar tudósok körútja 2., 1117 Budapest, Hungary;1. Dept. of Business Administration, Providence University, Taiwan, ROC;2. Dept. of Business Administration, National Chung Cheng University, Taiwan, ROC
Abstract:Firms that are searching for new technologies from suppliers through collaborative new product development (NPD) need to devise effective approaches for governing the supplier relationship. Based on in-depth case studies of four collaborative NPD projects, this paper shows that in projects with a high degree of uncertainty (1) firms achieve governance by simultaneously limiting supplier involvement and allowing for high levels of collaboration, (2) transactional and relational governance have distinct roles in achieving limited supplier involvement and establishing high levels of collaboration, and (3) transactional and relational governance are organizationally separated. These findings have implications for the complementary use of relational and transactional governance, as well as for the role of purchasing and R&D in technologically uncertain NPD projects.
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