Interorganizational information processing and the contingency effects of buyer-incurred uncertainty in a supplier's component development project

Sunil Hwang, Hyojin Kim, Daesik Hur and Tobias Schoenherr

International Journal of Production Economics, 2019, vol. 210, issue C, 169-183

Abstract: Supplier integration into new product development (NPD) necessitates effective information exchange and absorption between a buyer and a supplier. While prior research has emphasized the buyer's ability to manage the supplier's interface, this research takes a supplier perspective and investigates under which circumstances a supplier's interorganizational information processing capability (IIPC) drives the supplier's component development performance. We take a contingency view and theorize that the effect of the supplier's IIPC is either amplified or dampened by three sources of buyer-incurred project uncertainty: a buyer's component novelty, a buyer's engineering change orders (ECOs), and a buyer's knowledge protectiveness. The hypotheses are tested with data collected from 103 supplier component development projects in South Korea. As a result, this study empirically demonstrates the significant effects of a supplier's IIPC in enhancing the supplier's component development performance. In addition, we substantiate that the magnitude of a buyer's ECOs positively amplifies the benefits of the supplier's IIPC, while the buyer's knowledge protectiveness significantly hampers it. Academic and managerial implications are presented, and future research directions are discussed.

Keywords: Supplier involvement; New product development; Interorganizational information processing capability; Project uncertainty; Moderated regression (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:210:y:2019:i:c:p:169-183

DOI: 10.1016/j.ijpe.2019.01.019

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