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Enhancing Supplier Participation in New Product Development through Strategic Procurement: A Study of Chinese Manufacturing Enterprises

Author

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  • Chen Yonghui

    (Asia Metropolitan University (AMU), Malaysia.)

Abstract

This study focuses on the impact of strategic procurement by manufacturing enterprises on supplier involvement in new product development in Guangdong Province, the largest economic province in China. While there is existing research on supplier participation in new product development, less attention has been given to the role of procurement in this process. The study aims to explore the relationships between strategic procurement and supplier capabilities, supplier capabilities and participation in new product development, and enterprise cooperation and supplier participation in new product development. Using a conceptual model based on supply chain and transaction cost theories, the study finds that strategic procurement positively affects supplier investment in new product development through improved supplier capabilities and partnership between enterprises. Additionally, supplier technical and supply capabilities, trust between enterprises, and communication and collaboration positively influence supplier participation in new product development. The study recommends that manufacturing enterprises prioritize the strategic function of procurement, develop existing supplier capabilities, and establish good cooperation with suppliers involved in new product research and development to enhance the impact of strategic procurement on supplier investment in new product development.

Suggested Citation

  • Chen Yonghui, 2023. "Enhancing Supplier Participation in New Product Development through Strategic Procurement: A Study of Chinese Manufacturing Enterprises," International Journal of Science and Business, IJSAB International, vol. 24(1), pages 1-15.
    • Handle: RePEc:aif:journl:v:24:y:2023:i:1:p:1-15
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    References listed on IDEAS

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    1. Yushan Hu & Ben G. Li, 2021. "The production economics of economics production," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 30(1), pages 228-255, February.
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