THE IMPACT OF TECHNOLOGY UNCERTAINTY ON EARLY SUPPLIER INTEGRATION IN PRODUCT DEVELOPMENT

This study examines how the presence of technology uncertainty affects the benefits of integrating suppliers in the product development process. A framework was created to cover the different aspects of technology uncertainty discussed in current empirical studies. From this a survey instrument was created and a sample of data collected from companies engaged in product development projects. The analysis confirmed most aspects of the technology uncertainty framework. A tendency towards strategic and long-term buyer-supplier relationships leading to better product development performance was shown. Thorough supplier assessment using cross-functional teams and formal IP and confidentiality agreements were shown to benefit supplier integration in the Fuzzy Front End of product development. The benefits from integrating suppliers in the Fuzzy Front End seem to be positively moderated by the level of experience the buying-organization has with the technology provided by the supplier. This runs counter to the prediction that supplier integration should be more beneficial if the buying-organization has less knowledge about the supplier's technology.