Open Conference Systems, INTERNATIONAL MULTIDISCIPLINARY CONFERENCE (IMC 2017) PROGRAM

Font Size: 
THE EFFECT OF SUPPLIER INVOLVEMENT IN PRODUCT DEVELOPMENT TOWARDS SUPPLIERS’ ORGANIZATIONAL PERFORMANCE: A CASE STUDY OF PROTON’S SUPPLIERS
Hairin Nisa Meor Nordin, Zainal Azhar Zainal Azim,, Norhasbi Abdul Samad, Juliza Mohamed, Aza Azlina Md. Kassim

Last modified: 2017-01-02

Abstract


The goal of this study is to identify the interrelationships between suppliers’ involvement in product development at Proton and suppliers’ organisational performance. Focusing on the 121 respondents from 114 suppliers companies registered with Proton, quantitative research methods through survey questionnaires were used to get an in-depth view about the problem. Overall, this study found that the level of suppliers’ organisational performance is at satisfactorily level. Suppliers of Proton have the capabilities to meet Proton’s requirement in term of design, quality, delivery time, and cost capabilities. This study also finds that suppliers’ participation in joints strategic program, communication and information sharing, and design capabilities positively influence suppliers’ organisational performance. The finding of this research might lead not only to a better understanding of suppliers’ participation behaviour but also to better planning of suppliers’ involvement from the suppliers side. In future, suppliers will have better on the expectation of Proton.


Keywords


Suppliers’ Involvement, Proton, Joints Strategic Program, Communication and Information Sharing, Design Capabilities, New Product Development.

References


Abdullah, R. & Maharjan, K. L. (2003). Critical elements of supplier development in the Malaysian automotive industry: Parts and components procurement and supplier development practice at Proton. Journal International Development, 65-87

Abdullah, R., Maharjan, K. L. & Kimbara, T. (2008). Supplier development framework in the Malaysian automotive industry: Proton’s experience. International Journal of Economics and Management, 2(1), 29-58.

Ancona, D. G. & Caldwell, D. F. (1992). Bridging the boundary: External process and performance in organisational teams. Administrative Science Quarterly, 37, 634-665.

Bertodo, R. (1991). The role of suppliers in implementing a strategic vision. Long Range Planning, 24(3), 40-48.

Bozdogan, K., Deyst, J., Hoult, D. & Lucas, M. (1998). Architectural innovation in product development through early supplier integration. R&D Management, 28(3), 163-173.

Brockhoff, K. (2003). Customers’ perspectives of involvement in new product development. International Journal of Technology Management, 26(5/6), 464-481.

Brown, S. L. & Eisenhardt, K. M. (1995). Product development: Past research, present findings, and future directions. Academy of Management Review, 20 (2), 343-378.

Burt, D. N., Dobler, D. W. & Starling, S. L. (2003). World Class Supply Management. (7th Ed.). Irwin, Boston, MA: McGraw-Hill.

Changyue, L., Debasish N., Mallick, R., & Schroeder, G. (2010). Collaborative product development. European Journal of Innovation Management, 13(2), 244-266.

Clark, K. & Fujimoto, T. (1991). Product Development Performance: Strategy, Organization and Management in the World Automobile Industry. Boston: Harvard Business School Press.

Cooper, D. R. & Schindler, P. S. (2003). Business Research Methods (8th Ed.). New York, NY: McGraw Hill International.

Cusumano, M. A. & Takeishi, A. (1991). Supplier relations and management: A survey of Japanese, Japanese-transplant, and US auto plants. Strategic Management Journal, 12(8), 563-589.

Dyer, J. & Ouchi, W. (1993). Japanese-style partnerships: Giving companies a competitive advantage. Sloan Management Review, 35(1), 51-63.

Dyer, J. H. (1996). Specialized supplier networks as a source of competitive advantage: Evidence from the auto industry. Strategic Management Journal, 17(4), 271-291.

Ellison, D. J., Clark, K. B., Fujimoto, T. & Hyun, Y. S. (1995). Product Development Performance in the Auto Industry: 1990s Update. Working Paper 95-066, Harvard Business School.

Flynn, M. & Belzowski, B. (1996). The 21st Century Supply Chain: the Changing Roles, Responsibilities and Relationships in the Automotive Industry. Chicago: A.T. Kearney, Inc.

Ford, R. C. & Randolph, W. A. (1992). Cross-functional structures: Are view and integration of matrix organization and project management. Journal of Management, 18, 267-294.

Hahn, C. K., Watts, C. A. & Kim, K. Y. (1990). The supplier development program: A conceptual model. International Journal of Purchasing and Materials Management, 26, 2-7.

Handfield, R. B., Ragatz, G. L., Petersen, K. J. & Monczka, R. M. (1999). Involving suppliers in new product development. California Management Review, 42(1), 59-82, doi: 10.2307/41166019.

Helper, S. & Sako, M. (1995). Supplier relations in Japan and the United States: Are they converging?” Sloan Management Review, Spring, 77-84.

Helper, S. (1991). Strategy and irreversibility in supplier relations: The case of the US automobile industry. Business History Review, 65(4), 781-802.

Horvath, L. (2001). Collaboration: The key to value creation in supply chain management. Supply Chain Management: An International Journal, 6(5), 205-207.

Johnston, D. A., McCutcheon, D. M., Stuart, F. I. & Kerwood, H. (2004). Effects of supplier trust on performance of cooperative supplier relationships. Journal of Operations Management, 22(1), 23-38.

Keenan, T. (1996). Suppliers take on more responsibility: Expand global capability. In 1996 Ward's Automotive Yearbook, Southfield, MI: Ward's Communications, 37-39.

Littler, D., Leverick, F., & Wilson, D. (1998). Collaboration in new technology based markets. International Journal of Technology Management, 15(1/2), 139-159.

Mohr, J. J., & Nevin, J. R. (1990). Communication strategies in marketing channels: A theoretical perspective. Journal of Marketing, 54(4), 36-51.

Myhr, N. & Spekman, R. E. (2005). Collaborative supply-chain partnerships built upon trust and electronically mediated exchange. Journal of Business & Industrial Marketing, 20(4/5), 179-186.

Prakash J. S. & Power, D. (2009). The nature and effectiveness of collaboration between firms, their customers and suppliers: A supply chain perspective. Supply Chain Management: An International Journal, 14(3), 189-200, doi: 10.1108/13598540910954539.

Ragatz, G. L., Handfield, R. B., & Scannell, T. V. (1997). Success factors for integrating suppliers into new product development. Journal of Product Innovation Management, 14, 190-202.

Rees, D. (1996). The Effective of Supplier Development. (Unpublished Master Thesis). United Kingdom, UK: University of Warwick.

Sethi, R. (2000). Superordinate identity in cross-functional product development teams: Its antecedents and effect on new product performance. Journal of the Academy of Marketing Science, 28, 330-344.

Takeishi, A. (2001). Bridging inter- and intra-firm boundaries: Management of supplier involvement in automobile product development. Strategic Management Journal, 22: 403-433.

Takeishi, A. (2011). Bridging Inter- and Intra-Firm Boundaries: Management of Supplier Involvement in Automobile Product Development. (Unpublished report). Hitotsubashi University, Japan.

Van Echtelt, F. E. A., Wynstra, F., Van Weele, A. J. & Duyesters, G. (2008). Managing supplier involvement in NPD: A multiple-case study. Journal of Product Innovation Management, 25, 180-201.


Vickery, S. K., Jayaram, J., Droge, C. & Calantone, R. (2003). The effects of an integrative supply chain strategy on customer service and financial performance: An analysis of direct versus indirect relationships. Journal of Operations Management, 21(5), 523-539.

Von Coswant, F., & Tunailv, C. (2002). Coordinating customer and proactive suppliers: A case study of supplier collaboration in product development. Journal of Engineering and Technology Management, 19(3/4), 249-261.

Vroom,V. H. (1987). A new look at managerial decision making. In L. E. Boone & D. D. Bowen (Eds.), The great writings in management and organizational behavior. 365-383. New York: McGraw-Hill.

Watts, C. A., & Hahn, C. K. (1993). Linking purchasing to corporate competitive strategy. International Journal of Purchasing and Materials Management, 28, 15-20.

Wech, B. A., Mossholder, K. W., Steel, R. P., & Bennett, N. (1998). Does work group cohesiveness affect individuals’ performance and organizational commitment? A cross-level examination. Small Group Research, 29, 472-494.

Wisner, J. D. (2003). A structural equation model of supply chain management strategies and firm performance. Journal of Business Logistics, 24(1), 1-25.

Wynstra, F., vanWeele, A., & Weggemann, M. (2001). Managing supplier involvement in product development: Three critical issues. European Management Journal, 19, 157-167.

Full Text: PDF