IDEAS home Printed from https://ideas.repec.org/a/wly/jnljam/v2014y2014i1n542606.html

New Product Development in an Emerging Economy: Analysing the Role of Supplier Involvement Practices by Using Bayesian Markov Chain Monte Carlo Technique

Author

Listed:
  • Kanagi Kanapathy
  • Kok Wei Khong
  • Rob Dekkers

Abstract

The research question is whether the positive relationship found between supplier involvement practices and new product development performances in developed economies also holds in emerging economies. The role of supplier involvement practices in new product development performance is yet to be substantially investigated in the emerging economies (other than China). This premise was examined by distributing a survey instrument (Jayaram’s (2008) published survey instrument that has been utilised in developed economies) to Malaysian manufacturing companies. To gauge the relationship between the supplier involvement practices and new product development (NPD) project performance of 146 companies, structural equation modelling was adopted. Our findings prove that supplier involvement practices have a significant positive impact on NPD project performance in an emerging economy with respect to quality objectives, design objectives, cost objectives, and “time‐to‐market” objectives. Further analysis using the Bayesian Markov Chain Monte Carlo algorithm, yielding a more credible and feasible differentiation, confirmed these results (even in the case of an emerging economy) and indicated that these practices have a 28% impact on variance of NPD project performance. This considerable effect implies that supplier involvement is a must have, although further research is needed to identify the contingencies for its practices.

Suggested Citation

  • Kanagi Kanapathy & Kok Wei Khong & Rob Dekkers, 2014. "New Product Development in an Emerging Economy: Analysing the Role of Supplier Involvement Practices by Using Bayesian Markov Chain Monte Carlo Technique," Journal of Applied Mathematics, John Wiley & Sons, vol. 2014(1).
    • Handle: RePEc:wly:jnljam:v:2014:y:2014:i:1:n:542606
    DOI: 10.1155/2014/542606
    as

    Download full text from publisher

    File URL: https://doi.org/10.1155/2014/542606
    Download Restriction: no
    File URL: https://libkey.io/10.1155/2014/542606?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jing Li & Dong Chen & Daniel M. Shapiro, 2010. "Product Innovations in Emerging Economies: The Role of Foreign Knowledge Access Channels and Internal Efforts in Chinese Firms," Management and Organization Review, The International Association for Chinese Management Research, vol. 6(2), pages 243-266, July.
    2. Kim B. Clark, 1989. "Project Scope and Project Performance: The Effect of Parts Strategy and Supplier Involvement on Product Development," Management Science, INFORMS, vol. 35(10), pages 1247-1263, October.
    3. Asim Ansari & Kamel Jedidi & Sharan Jagpal, 2000. "A Hierarchical Bayesian Methodology for Treating Heterogeneity in Structural Equation Models," Marketing Science, INFORMS, vol. 19(4), pages 328-347, August.
    4. Fu, Xiaolan & Pietrobelli, Carlo & Soete, Luc, 2011. "The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catching-up," World Development, Elsevier, vol. 39(7), pages 1204-1212, July.
    5. Prencipe, Andrea, 1997. "Technological competencies and product's evolutionary dynamics a case study from the aero-engine industry," Research Policy, Elsevier, vol. 25(8), pages 1261-1276, January.
    6. Thomas Johnsen, 2009. "Supplier involvement in new product development and innovation: Taking stock and looking to the future," Post-Print hal-00771091, HAL.
    7. Rajdeep Grewal & Joseph A. Cote & Hans Baumgartner, 2004. "Multicollinearity and Measurement Error in Structural Equation Models: Implications for Theory Testing," Marketing Science, INFORMS, vol. 23(4), pages 519-529, June.
    8. Li, Jing & Chen, Dong & Shapiro, Daniel M., 2010. "Product Innovations in Emerging Economies: The Role of Foreign Knowledge Access Channels and Internal Efforts in Chinese Firms," Management and Organization Review, Cambridge University Press, vol. 6(2), pages 243-266, July.
    9. Bruton, Garry D. & Rubanik, Yuri, 2002. "Resources of the firm, Russian high-technology startups, and firm growth," Journal of Business Venturing, Elsevier, vol. 17(6), pages 553-576, October.
    10. Tsui, Anne S., 2006. "Contextualization in Chinese Management Research," Management and Organization Review, Cambridge University Press, vol. 2(01), pages 1-13, March.
    11. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    12. Bob Mau & Michael A. Newton & Bret Larget, 1999. "Bayesian Phylogenetic Inference via Markov Chain Monte Carlo Methods," Biometrics, The International Biometric Society, vol. 55(1), pages 1-12, March.
    13. Klaus Meyer, 2007. "Asian contexts and the search for general theory in management research: A rejoinder," Asia Pacific Journal of Management, Springer, vol. 24(4), pages 527-534, December.
    14. Fariborz Damanpour, 1996. "Organizational Complexity and Innovation: Developing and Testing Multiple Contingency Models," Management Science, INFORMS, vol. 42(5), pages 693-716, May.
    15. McIvor, R. & Humphreys, P., 2004. "Early supplier involvement in the design process: lessons from the electronics industry," Omega, Elsevier, vol. 32(3), pages 179-199, June.
    16. Gruner, Kjell E. & Homburg, Christian, 2000. "Does Customer Interaction Enhance New Product Success?," Journal of Business Research, Elsevier, vol. 49(1), pages 1-14, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert Suurmond & Finn Wynstra & Jan Dul, 2020. "Unraveling the Dimensions of Supplier Involvement and their Effects on NPD Performance: A Meta‐Analysis," Journal of Supply Chain Management, Institute for Supply Management, vol. 56(3), pages 26-46, July.
    2. Thakur-Wernz, Pooja & Cantwell, John & Samant, Shantala, 2019. "Impact of international entry choices on the nature and type of innovation: Evidence from emerging economy firms from the Indian bio-pharmaceutical industry," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    3. Lei Guo & Marina Yue Zhang & Mark Dodgson & David Gann & Hong Cai, 2019. "Seizing windows of opportunity by using technology-building and market-seeking strategies in tandem: Huawei’s sustained catch-up in the global market," Asia Pacific Journal of Management, Springer, vol. 36(3), pages 849-879, September.
    4. Jun Jin & Zhengyi Zhang & Liying Wang, 2019. "From the Host to the Home Country, the International Upgradation of EMNEs in Sustainability Industries—The Case of a Chinese PV Company," Sustainability, MDPI, vol. 11(19), pages 1-19, September.
    5. Hwang, Sunil & Kim, Hyojin & Hur, Daesik & Schoenherr, Tobias, 2019. "Interorganizational information processing and the contingency effects of buyer-incurred uncertainty in a supplier's component development project," International Journal of Production Economics, Elsevier, vol. 210(C), pages 169-183.
    6. Lili Mi & Xiao-Guang Yue & Xue-Feng Shao & Yuanfei Kang & Yulong Liu, 2020. "Strategic Asset Seeking and Innovation Performance: The Role of Innovation Capabilities and Host Country Institutions," JRFM, MDPI, vol. 13(3), pages 1-22, March.
    7. Roman Jurowetzki & Rasmus Lema & Bengt-Åke Lundvall, 2018. "Combining Innovation Systems and Global Value Chains for Development: Towards a Research Agenda," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 364-388, July.
    8. Abel D Alonso & Seng Kok, 2018. "A resource-based view and dynamic capabilities approach in the context of a region’s international attractiveness: The recent case of Western Australia," Local Economy, London South Bank University, vol. 33(3), pages 307-328, May.
    9. Jianghua Zhou & Zixu Liu & Jizhen Li & Gupeng Zhang, 2021. "Foreign equity, exporting and firm innovation: an emerging market perspective," The Journal of Technology Transfer, Springer, vol. 46(3), pages 606-628, June.
    10. Dedy Dewanto, 2022. "The characteristic of leader innovativeness, a case in Indonesian’s construction industry," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(8), pages 153-165, November.
    11. Thomas Johnsen & Marie-Anne Le Dain & Nadine Kiratli & Holger Schiele, 2022. "Editorial: Purchasing and innovation: Past, present and future of the field of research," Post-Print hal-03761525, HAL.
    12. Muhammad Kaleem Khan & Ahmad Kaleem & Salman Zulfiqar & Umair Akram, 2019. "Innovation Investment: Behaviour Of Chinese Firms Towards Financing Sources," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(07), pages 1-29, October.
    13. Ivan Lapuente Garrido & Ronaldo Couto Parente & Cláudio Reis Gonçalo & Sílvio Luís de Vasconcellos, 2017. "Remaining Innovative: The Role of Past Performance, Absorptive Capacity, and Internationalization," Brazilian Business Review, Fucape Business School, vol. 14(6), pages 559-574, November.
    14. Peter S. Hofman & Constantin Blome & Martin C. Schleper & Nachiappan Subramanian, 2020. "Supply chain collaboration and eco‐innovations: An institutional perspective from China," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2734-2754, September.
    15. Sarada Devi Gadepalli & Arindam Mondal, 2018. "Sources of Business Unit Performance Heterogeneity in India: The Influence of Ownership," Vikalpa: The Journal for Decision Makers, , vol. 43(4), pages 207-221, December.
    16. Jing Li & Jun Xia & Edward J. Zajac, 2018. "On the duality of political and economic stakeholder influence on firm innovation performance: Theory and evidence from Chinese firms," Strategic Management Journal, Wiley Blackwell, vol. 39(1), pages 193-216, January.
    17. Shapiro, Daniel & Oh, Chang Hoon & Zhang, Peng, 2023. "Nighttime lights data and their implications for IB research," Journal of International Management, Elsevier, vol. 29(5).
    18. Daniel Shapiro & Yao Tang & Miaojun Wang & Weiying Zhang, 2017. "Monetary incentives and innovation in Chinese SMEs," Asian Business & Management, Palgrave Macmillan, vol. 16(3), pages 130-157, July.
    19. Bruno, Randolph Luca & Campos, Nauro F. & Estrin, Saul, 2018. "Taking stock of firm-level and country-level benefits from foreign direct investment," LSE Research Online Documents on Economics 87343, London School of Economics and Political Science, LSE Library.
    20. Alemayehu, Fikru K. & Sun, Kai & Kumbhakar, Subal C., 2026. "Productivity dynamics, innovation and endogeneity: A semiparametric stochastic frontiers approach," European Journal of Operational Research, Elsevier, vol. 330(3), pages 1028-1038.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:jnljam:v:2014:y:2014:i:1:n:542606. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://onlinelibrary.wiley.com/journal/4185 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.