Collaboration Management Strategies and Product Development Performance

In collaborative product development with multiple suppliers, buyers must manage the suppliers’ activities. Thisempirical research investigates the performance impacts of three strategies that buyers use to manage suppliers whodesign interdependent components. These strategies are: Instructionism (giving clear instructions to suppliers),Teaming (forming an interactive development team with suppliers), and Delegation (transferring component developmentresponsibilities to suppliers). Data were collected through a cross－industry web-based survey of buying firmsin manufacturing industries whose products require multiple, interdependent components. A path analysis utilizing 318survey responses indicates that Instructionism has a positive effect on design quality, and Teaming has a positiveeffect on design quality and component innovation. The use of Delegation is not related to any of the performanceindicators. The practical implication of this research for product development managers is that both Instructionism and Teamingcan be effective strategies. For the purpose of assuring design quality, a buyer should give clear instructions in detailedspecifications or work closely with suppliers in development teams. If competitive priority is product innovativeness,however, the buyer should work closely with its suppliers during component development processes using a Teamingstrategy.