An Empirical Study on the Moderating Effect of Supplier integration and uncertainty in new product
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The development of new products through the integration of suppliers is a strategic activity that utilizes knowledge from suppliers. Previous studies that have examined supplier integration find that it has a positive effect on new product development performance. However, supplier integration under uncertainty, which is one of the fundamental characteristics of new product development, has not yet been sufficiently studied. This study argues that environmental uncertainty—technological uncertainty, market uncertainty, and economic uncertainty—in the development of new products will have an impact on supplier integration for new product development performance. In this study, we utilized the manufacturing productivity panel data collected by the Ministry of Commerce, Industry and Energy and the Korea Productivity Center. In order to test the moderating effects of this study, hierarchical regression analysis was performed. Research results show that supplier integration has a positive effect on new product development performance and the interaction effects of technological uncertainty and supplier integration are negative for new product development performance (development schedule compliance rate, development cost efficiency, and development flexibility). However, the interaction effect of market uncertainty and supplier integration showed positive effects on new product development performance (development cost efficiency and development flexibility).
Abstract
The development of new products through the integration of suppliers is a strategic activity that utilizes knowledge from suppliers. Previous studies that have examined supplier integration find that it has a positive effect on new product development performance. However, supplier integration under uncertainty, which is one of the fundamental characteristics of new product development, has not yet been sufficiently studied. This study argues that environmental uncertainty—technological uncertainty, market uncertainty, and economic uncertainty—in the development of new products will have an impact on supplier integration for new product development performance. In this study, we utilized the manufacturing productivity panel data collected by the Ministry of Commerce, Industry and Energy and the Korea Productivity Center. In order to test the moderating effects of this study, hierarchical regression analysis was performed. Research results show that supplier integration has a positive effect on new product development performance and the interaction effects of technological uncertainty and supplier integration are negative for new product development performance (development schedule compliance rate, development cost efficiency, and development flexibility). However, the interaction effect of market uncertainty and supplier integration showed positive effects on new product development performance (development cost efficiency and development flexibility).
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