New product development in an emerging economy: analysing the role of supplier involvement practices by using Bayesian Markov chain Monte Carlo technique

Kanapathy, K., Khong, K.W. and Dekkers, R. (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, 2014, p. 542606. (doi: 10.1155/2014/542606)

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.

• Item Type: Articles
• Additional Information: Article ID 542606.
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Dekkers, Dr Rob
• Authors: Kanapathy, K., Khong, K.W., and Dekkers, R.
• College/School: College of Social Sciences > Adam Smith Business School > Management
• Journal Name: Journal of Applied Mathematics
• Publisher: Hindawi
• ISSN: 1110-757X
• ISSN (Online): 1687-0042
• Copyright Holders: Copyright © 2014 Kanagi Kanapathy et al.
• First Published: First published online in Journal of Applied Mathematics 08.01.14
• Publisher Policy: Reproduced under a Creative Commons License