This thesis explores the supplier perspective of supplier involvement in product development. Supplier involvement in product development is crucial for many companies to increase resource flexibility, access competence, reduce costs and time to market, among others. The existing literature focuses primarily on the customer perspective of supplier involvement, e.g., challenges and critical factors customers should consider. A few studies have focused on the supplier perspective. This research gap is addressed in this thesis by studying the conditions influencing the suppliers’ involvement in customers’ product development.

This thesis explores two research questions: “What are the challenges suppliers experience when being involved in customers’ product development?”, and “What mitigating mechanisms and critical factors influence suppliers’ involvement in customers’ product development?”. The identified challenges originated [FF1] both from the customer and the supplier, indicating that both types of challenges must be focused on. The study also identified interdependencies between the challenges, implying that one challenge may lead to the occurrence of other challenges. The study suggests mitigating mechanisms to deal with the identified challenges. The identified critical factors influenced both the efficiency and effectiveness of supplier involvement in product development, e.g., lead-time, development cost, product quality, and cost. The study indicates that adopting a dual perspective and considering the challenges and critical factors for both the customer and the supplier, can support the involved supplier. The results build on findings from a case study including four SMEs.

Product development has increasingly evolved into an interorganisational activity where suppliers are involved in customers’ product development projects. This phenomenon of supplier involvement in product development has been studied for over four decades. However, most prior research has focused on the customer perspective, studying the benefits, risks, and challenges faced by customers, as well as the critical factors influencing their ability to successfully involve suppliers. Current research, however, provides limited insights into the supplier’s perspective on their involvement in customers’ product development projects. Understanding this perspective is vital for gaining deeper insights into the characteristics of supplier involvement in product development from the suppliers’ perspective, as well as the implications these characteristics entail.

This thesis explores the following research questions to address these gaps: “What characterises supplier involvement in product development from the supplier’s perspective?”, and “What are the implications of the characteristics for the supplier?”. The results build on a systematic literature review and the findings of a multiple case study including four Small and Medium-sized Enterprise (SME) suppliers. The thesis consists of a compiled summary and five appended papers. 

The results show that supplier involvement in product development, from the suppliers’ perspective, is characterised by tasks that vary in terms of complexity, novelty, and responsibility, along with varying customer expectations, different types of interrelationships, capability- and interface-related challenges, and uncertainty regarding product requirements and technology. Two major implications related to these characteristics were identified. First, it is important for suppliers to develop their internal capabilities, such as enhancing competence, establishing product development process models, utilising design tools, and fostering internal collaboration. Second, it is crucial to improve conditions for interaction. The findings emphasise the importance of early supplier involvement and contextual information in improving interaction and product development outcomes. Early involvement helps suppliers understand customer requirements and design challenges, allowing them to influence the design and prevent manufacturing complexities. Contextual information facilitates in identifying areas for design and manufacturing improvements, as well as uncovering unspoken customer needs and information gaps.

Keywords:     supplier involvement, supplier integration, supplier collaboration, NPD, SME, manufacturing company