Supply network delegation and intervention strategies during supplier involvement in new product development

This paper empirically explore the impact of two strategies related to involving direct suppliers in NPD, these strategies are intervention and delegation. The paper is based on organizational behavior, traditional NPD literature and literature of organizational economics. In order to check the relationship of these strategies the questionnaire was used as a measurement tool. The data was collected from 45 respondents from the different manufacturing and services organizations. Exploratory regression analysis was used to analyze the hypotheses. The results of the analysis reveal that when intervention and delegation are implied in new product development process there can be positive or negative impacts of them. Manufacturers always try to control the process of NPD across several tiers supply network through intervention but these actions will tie up the hands of suppliers. Delegation strategy has found insignificant and negative relationship with NPD. The organizations are willing to adopt this strategy or practice but it is not currently being used in their processes.