Risk management on joint product development with power asymmetry between supplier and manufacturer

Zhao, Yanlu; Cao, Hui

Abstract

Risk management is a critical issue in complex product development, especially when suppliers are integrated. The power asymmetry between the supplier and manufacturer may largely influence the development process and affect the occurrence and interaction of risks, and it should be systematically examined. In this paper, we establish a structural model to study the impact of power asymmetry on risk occurrence in the joint product development (JPD). Empirical data collected from engineers in airspace industries show that path coefficients of the risk structural model are significantly different between the manufacturer-advantaged situation and the supplier-advantaged situation. The results indicate that power asymmetry has significant effects on risk occurrence and interaction. Furthermore, we provide managerial insights into customized risk-reduction measures from the perspective of the discovered relationship difference.

Citation

Zhao, Y., & Cao, H. (2015). Risk management on joint product development with power asymmetry between supplier and manufacturer. International Journal of Project Management, 33(8), 1812-1826. https://doi.org/10.1016/j.ijproman.2015.08.008

• Journal Article Type: Article
• Acceptance Date: Aug 25, 2015
• Online Publication Date: Sep 17, 2015
• Publication Date: 2015-11
• Deposit Date: Sep 2, 2020
• Publicly Available Date: Sep 2, 2020
• Journal: International Journal of Project Management
• Print ISSN: 0263-7863
• Electronic ISSN: 1873-4634
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 33
• Issue: 8
• Pages: 1812-1826
• DOI: https://doi.org/10.1016/j.ijproman.2015.08.008
• Public URL: https://durham-repository.worktribe.com/output/1293417