Product co-development in an emerging market: the role of buyer-supplier compatibility and institutional environment

Jeff Jianfeng Wang, Julie Juan Li, Jeanine Chang

Research output: Contribution to journalArticleResearchpeer-review

56 Citations (Scopus)

Abstract

In emerging markets, supply chains increasingly serve as critical value chains through which ideas, practices and knowledge flow to and from suppliers and buyers. Drawing on buyer-supplier collaboration literature and organizational learning theory, we examine the antecedents and underlying mechanisms of product co-development. Due to emerging markets’ unique institutional environments, we further investigate how government intervention and guanxi importance moderate supplier-buyer collaborative outcomes. Dyadic data from 323 supplier-buyer pairs in China largely support our theoretical framework. Partners’ knowledge commonality has a curvilinear (inverted U-shaped) relationship to product co-development, whereas goal compatibility has a positive impact on product co-development. Mutual learning partially mediates the main effect. Furthermore, government intervention weakens the positive effect of mutual learning on product co-development whereas guanxi importance strengthens this relationship. This research provides fresh theoretical and managerial implications to supply chain collaboration in emerging markets.

Original languageEnglish
Pages (from-to)69-83
Number of pages15
JournalJournal of Operations Management
Volume46
DOIs
Publication statusPublished - 1 Sep 2016
Externally publishedYes

Keywords

  • Buyer-supplier compatibility
  • Emerging markets
  • Institutional environment
  • Mutual learning
  • Product co-development

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