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The Effect of Socialization Mechanisms and Performance Measurement on Supplier Integration in New Product Development
Author(s) -
Cousins Paul D.,
Lawson Benn
Publication year - 2007
Publication title -
british journal of management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.407
H-Index - 108
eISSN - 1467-8551
pISSN - 1045-3172
DOI - 10.1111/j.1467-8551.2007.00514.x
Subject(s) - socialization , structural equation modeling , context (archaeology) , new product development , business , supplier relationship management , product (mathematics) , sample (material) , process (computing) , marketing , process management , knowledge management , industrial organization , psychology , supply chain , supply chain management , computer science , social psychology , paleontology , chemistry , geometry , mathematics , chromatography , machine learning , biology , operating system
This article examines the effect of socialization mechanisms and supplier performance measurement on the level of supplier integration in new product development and subsequent firm performance outcomes. Prior research has found socialization mechanisms and performance measures to be effective in managing supplier relationships, though research examining their impact within a product development context has been limited. Socialization mechanisms, such as supplier conferences and on‐site visits, help establish communication and information‐sharing routines necessary to achieve supplier integration in the product development process. Using performance measures to evaluate a supplier helps focus managerial attention on areas such as innovation and communication that are important to integration success. A structural equation model, using a sample of 142 manufacturing firms based in the United Kingdom, indicates that the level of supplier integration in new product development is positively influenced by socialization mechanisms and innovation‐focused measures of supplier performance, but not significantly associated with the use of communication measures. In turn, increased levels of supplier integration led to improvements in both collaboration outcomes and business performance. Socialization mechanisms were also found to have a direct effect on collaboration outcomes achieved by the firm. Managerial implications and future research directions are discussed.