Francis Bidault

The drivers of cooperation between buyers and suppliers for product innovation

Abstract This article reports the results of an empirical study that probed the adoption of Early Supplier Involvement (ESI) in the product development process. ESI is defined as a form of vertical cooperation where manufacturers involve suppliers at an early stage in the product development/innovation process, generally at the level of concept and design. Previous research has shown that Western automobiles manufacturers obtained significant benefits by emulating the ESI practices of their Japanese competitors; the bulk of research knowledge is, in fact, located in this domain. This study focused on a group of assembly-based industries outside the automotive setting to determine if the adoption and benefits of ESI are found in other domains as well. Twenty-five companies in three non-automotive industries participated in the research. A model of ESI adoption was developed and tested, and an ESI index created to determine the degree to which this practice was applied. The results reveal, among other things, that the level of ESI practice is strongly related to a higher number of supplier base initiatives, lower product integration, broader supplier scope and a higher proportion of parts purchased. Significant results were also obtained in comparisons between industry sectors and geographic regions (USA, Western Europe and Japan). We suggest that promising directions for future research include broad-based samples across industrial sectors and industry-focused empirical study.

New product development and early supplier Involvement (ESI): the drivers of ESI adoption

This paper reports the results of an empirical study that probed the adoption of early supplier involvement (ESI) in the product development process. ESI is defined as a form of vertical co-operation in which manufacturers involve suppliers at an early stage in the product development/innovation process, generally at the level of concept and design. Previous research has shown that Western automobile manufacturers obtained significant benefits by emulating the ESI practices of their Japanese competitors; the bulk of research knowledge is, in fact, located in this domain. This study focused on a group of assembly-based industries outside the automotive setting to determine if the adoption and benefits of ESI are found in other domains as well. Twenty-five companies in three non-automotive industries participated in the research. A model of ESI adoption was developed and tested, and an ESI index created to determine the degree to which this practice was applied. The results reveal, among other things, that the level of ESI practice is strongly related to a higher number of supplier base initiatives, lower product integration, broader supplier scope and a higher proportion of parts purchased. Significant results were also obtained in comparisons between industry sectors and geographic regions (USA, Western Europe and Japan). We suggest that promising directions for future research include broad-based samples across industrial sectors and industry-focused empirical study.

Trust and Creativity: Understanding the Role of Trust in Creativity-Oriented Joint Developments

In this article we report on the design, prototyping and results of a research effort aimed at identifying if and how trust affects the creativity of a partnership between two economic agents. The methodology combines an experiment and two questionnaires. The purpose of the research is to increase our understanding of trust and its impact on the outcome of cooperation, and to derive some guidance for economic actors, namely RD if the level of mutual trust is below or above this threshold; their joint creativity seems to decrease.

Global licensing strategies and technology pricing

Most manufacturing firms today realise that licensing is a powerful means to achieve their strategic goals. As an increasing number of industries experience globalisation, large as well as small firms are contemplating licensing in their wish to reach new markets or to reduce manufacturing costs. Among the numerous questions raised by licensing in the different fields of management, the technology pricing issue figures prominently. Previous research on technology pricing has essentially focused on the possible existence of economic drivers, however, the strategic dimension of licensing has been neglected. A better understanding of the pricing policy of firms implies taking their licensing rationales into consideration. This is what we intend to do in the present paper. After reviewing the literature that provides a framework for most research on technology pricing, we will present an analysis of the licensing motives leading to the identification of three generic licensing strategies and to the formulation of some hypotheses. It will be seen that our approach is not contradictory to previous ones, particularly Contractors, but rather builds on them by identifying the conditions under which they are valid.

The Strategic Implications of ESI

‘Working on the Mustang was challenging,’ according to Lee Davidson, manager of automotive products for Intel. ‘The challenging part was meeting the schedule that Ford required.’145 Intel supplied some of this automobile engine’s electronics, and was one of around 200 suppliers that were swept up in Ford’s move from the 48-month ‘Concept to Customer’ programme to its new 37-month ‘World Class Timing’ new car development process.

The Context of Early Supplier Involvement

‘A car for two people and a pack of beer.’ This is how critics describe ‘Smart’, the micro-car due to be launched in the very near future and expected to sell at a rate of 200 000 by the year 2000. The Smart car departs from conventional automotive design logic - it is nothing, in fact, if not innovative. This new product, aimed at frayed nerves and urban congestion, is 40 per cent shorter than most European sub-compacts and capable of being parked perpendicular to sidewalks. A top-of-the-line ‘hybrid’ model is equipped with both a gas engine and an electric motor. The body of the car is fitted with plastic panels that can be changed in a short time to give the car a new look in a flash. Smart’s marketing is also expected to break new ground with a novel approach to leasing: consumers will have the option of leasing a ‘transportation solution’ where, for a monthly fee, they buy not only the Smart car but also the right to use a large sedan for a period of time each year.

The Supplier’s Perspective

The FM Corporation is a foam molding supplier that posts the following message on its homepage (http://www.fmplastics.com) Recently a customer came to us with finished drawings for a quotation. Their design was unique and creative - but impossible to mould. Our engineers and toolmakers, together with the customer, eventually solved the problem. But earlier involvement with FM could have saved hundreds of man-hours and thousands of dollars.

The era of alliances

When it comes to alliance management, there are few companies in the world that enjoy as much respect as Corning. Throughout its long history — the company celebrated its 160th anniversary in 2011 — the upstate New York company has forged numerous cooperation arrangements with a variety of partners worldwide.

The world of alliances

Tom Cummings and I were busy preparing a workshop on the management of strategic alliances for a group of executives in Geneva. We took a break during our long afternoon spent designing the program architecture and contacting industry speakers. I put a book, which I had recently discovered, on the table: The Catalogue of Impossible Objects designed by artist Jacques Carelman1 and first published in Paris in 1969. The book was a collection of hilarious drawings of objects that made no sense and that Carelman’s amazing creativity had nevertheless invented to cheer up tired people like us.

The life of an alliance

The state of Kentucky with its green hills and plots of land surrounded by white wooden fences is best known for “Blue Grass” music and horse breeding. It is also home to Lexmark International, Inc., one of the leaders in the printer industry, based in Kentucky’s capital, Lexington.