Platform management: Implication for new product development and supply chain management

Abstract

Purpose

To identify some of the major issues and problems firms face, when they collaborate with suppliers in new product development.

Design/methodology/approach

The paper presents a case study of a leading Danish hearing aid manufacturer.

Findings

Early involvement of suppliers in new product development reduces time‐to‐market, but increases the risk that proprietary knowledge is leaked to the competitors. Therefore, the supplier approval process is very important.

Research limitations/implications

The paper discusses the implications of platform management for new product development and sourcing strategies. The paper is based on a single case study. In order to generalize the findings, it is necessary to study more companies from different industries, with different technologies, competition, and contextual features.

Practical implications

The paper illustrates the risk of single sourcing and raises the question, how buyers without leverage can become an interesting customer for large suppliers.

Originality/value

The paper analyzes the implications of platform management for new product development and supply chain management at the interfaces between focal company and its suppliers and customers.

Citation

Mikkola, J.H. and Skjøtt‐Larsen, T. (2006), "Platform management: Implication for new product development and supply chain management", European Business Review, Vol. 18 No. 3, pp. 214-230. https://doi.org/10.1108/09555340610663737