Supplier involvement in the fuzzy front end of new product development: An investigation of homophily, benevolence and market turbulence

• Published in: International journal of production economics 2016-10, Vol.180, p.101-113
• Main Authors: Schoenherr, Tobias, Wagner, Stephan M.
• Format: Article
• Language: English
• Subjects: Benevolence; Contingency planning; Decision theory; Fuzzy front end; Fuzzy logic; Homophily; Market turbulence; New product development; Product development; Social exchange theory; Studies; Supplier involvement; Suppliers; Supply chain management; Vendor supplier relations
• ISSN: 0925-5273; 1873-7579
• DOI: 10.1016/j.ijpe.2016.06.027

The fuzzy front end (FFE) of new product development (NPD), i.e. the phase preceding the formal product development, is characterized by ill-defined processes, ad-hoc decisions, equivocality and uncertainty. While involving suppliers in this early stage is crucial, limited insight exists on how to best accomplish this objective. We address this issue in the present research by focusing on two important characteristics of the buyer-supplier relationship: homophily and benevolence. Grounding our arguments in social exchange theory (SET), both dimensions are expected to be associated with a greater degree of supplier involvement. In addition, taking a contingency perspective, arguments are developed for the moderating role of market turbulence. These contentions are tested with project-level NPD data. The data provide support for the association of homophily with supplier involvement in the FFE, highlighting the relevance to consider “softer” supplier selection criteria for NPD success. While the link between benevolence and supplier involvement in the FFE was not supported, both moderation hypotheses were, providing insight into the dynamics underlying supplier involvement in the FFE of NPD. Overall, we advance theory by examining antecedents and contingencies that can foster supplier involvement in the FFE, an area left largely uninvestigated to date, and provide practical guidance for supply chain managers on how the involvement of suppliers in the FFE phase can be enhanced. •We examine antecedents and contingencies fostering supplier involvement in the fuzzy front end of new product development.•Arguments are grounded in social exchange theory.•While homophily serves as an influential antecedent, the impact of benevolence was not supported by the data.•Market turbulence moderates the relationships between both homophily and benevolence, and supplier involvement in the FFE of NPD.