OEM participation in SME suppliers’ new product development efforts

Abstract

This study examines the effects of product complexity, criticality, and innovativeness on OEM performance when those links are mediated by the original equipment manufacturer (OEM)’s participation in the SME supplier’s new product development and moderated by the manufacturer’s culture. A cross-sectional sample of 169 purchasing managers from the industrial and commercial machinery, computer, electrical, and transportation equipment industries participated in the study. Respondents completed questionnaires that were delivered via surface mail or email. Both mediation and moderation were examined using standard regression techniques. Results show significant positive relationships between the three different types of product characteristics and manufacturer participation, and significant relationship between manufacturer participation and performance. Results also indicate a moderating role for organizational culture on the relationship between manufacturer participation and NPD performance. © 2016 People and Global Business Association.