Supplier integration into new product development: the effects of component centrality and innovativeness

Supplier integration into new product development (NPD) is an important determinant of project success and firm competitive advantage. Nevertheless how to effectively integrate external partners into the process still remains an open issue, both for theory and practice. We theoretically model and empirically validate a contingent framework, by considering how component centrality and innovativeness affect the degree of supplier integration into NPD. We address such issue by studying the development of a new engine by a major European carmaker. Based on this case-study we propose a new classification of components and assess the implications for inter-organizational dynamics. The first results supported the validity of the model.