Abstract
In this paper, we provide a quantitative analysis for the degree of supplier’s involvement under market uncertainty. Taking the proportion of tasks assumed by supplier as an index of the involvement extent, we seek this optimized extent from supplier’s point of view. Our analysis shows that, for the supplier’s involvement, its participation is restricted by two sides’ relative marginal profit, development ability and market uncertainty of the new product. When supplier involved and shared some manufacturer’ design task, it has a optimized proportion to choose, this proportion is positive relation to its marginal profit and technology development ability, negative relation to manufacturer’s marginal profit and technology development ability, and negative relation to market success probability.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Clark K.B. (1998) Project Scope and Project Performance: The Effect of Parts Strategy and Supplier Involvement on Product Development, Management Science, 35[10], 1247–1263.
Dyer J.H. (1997) Effective Inter firm Collaboration: How Firms Minimize Transaction Costs and Maximize Transaction Value, Strategic Management Journal, 18[7], 535–556.
Pelton L.E., Strutton D. and Lumpkin J.R. (1997) Marketing Channels – A Relationship Management Approach, Chicago: Irwin.
Bonaccorsi A., Lippaini A. (1994) Strategic Partnerships in New Product Development: An Italian Case Study, Journal of Product Innovation Management, 11, 134–145.
Dyer J.H., Nobeoka K. (2000) Creating and Managing: A High-Performance Knowledge-Sharing Network: The TOYOTA Case, Strategic Management Journal, 21[3], 345–367.
Liker J.K., Kamath R.R., Watsi S.N. and Nagamachi M. (1996) Supplier Involvement in Automotive Component Design: Are There Really Large US Japan Differences, Research Policy, 25[1], 59–89.
Andersen P.H., Drejer I. (2009) Together We Share? Competitive and Collaborative Supplier Interests in Product Development, Technovation, 29[10], 690–703.
Johnsen T. E. (2009) Supplier Involvement in New Product Development and Innovation: Taking Stock and Looking to the Future, Journal of Purchasing and Supply Management, 15[3], 187–197.
Bidualt F., Despres C. and Butler C. (1998) New Product Development and Early Supplier Involvement (ESI): The Drivers of ESI Adoption, International Journal of Technology Management, 15[1 & 2], 49–69.
Swink M. (1999) Threats to New Product manufacturability and the Effects of Development Team Integration Processes, Journal of Operations Management, 17[6], 691–709.
Wynstra F., Pierick E.T. (2000) Managing Supplier Involvement in New Product Development: A Portfolio Approach, European Journal of Purchasing and Supply Management, 6[1], 49–57.
Petersen K.J., Handfield R.B. (2005) Supplier Integration into New Product Development: Coordinating Product, Process and Supply Chain Design, Journal of Operations Management, 23[3], 371–388.
Acknowledgement
This research is supported by the funds project under Humanities and Social Sciences Foundation of Ministry of Education of China (No. 09YJC630248).
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2011 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Zhang, Zj., Pan, H. (2011). A Quantitative Analysis for Degree of Supplier Involvement Under Market Uncertainty. In: Wu, D. (eds) Modeling Risk Management in Sustainable Construction. Computational Risk Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-15243-6_4
Download citation
DOI: https://doi.org/10.1007/978-3-642-15243-6_4
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-15242-9
Online ISBN: 978-3-642-15243-6
eBook Packages: Business and EconomicsBusiness and Management (R0)