Does supply chain involvement improve the new product development performance? A partial least square-structural equation modelling approach

Abstract

An increased market competition and customers changing preferences leading to the emergence of a need to involve relevant functions of supply chain as well as strategic customers and suppliers in the early stages of new product development. Therefore, this study examines the impact of supply chain involvement on new product development performance. Data was collected from 280 professionals from different departments of manufacturing companies in Pakistan who are engaged in the process of new product development and partial least square-structural equation model was applied. The results revealed that internal involvement is the base of external involvement including customers and suppliers, revealing insight into the 'black box' of supply chain involvement. The research further emphasise on the fact that the companies should first improve internal involvement before they can accomplish external (i.e., customer and supplier) involvement. Moreover, it is also recommended that organisations need to grow great connections, offer data, and tackle issues mutually among internal functions and with outside supply chain partners while developing new products. The study further discussed the results whereas directions for future researchers are also given.