Purchasing and supply management empowerment in the new product development process

In this study, we examine the role of collaboration during the new product development (NPD) process. Previous NPD research has investigated issues such as the timing and extent of involvement of suppliers and the purchasing and supply management (PSM) department in the NPD process, with mixed results. A potential answer for the mixed results is whether an empowered PSM department, i.e., one that can act on behalf of another party, controls the NPD process. To help understand this empowerment, we developed and tested a model using survey data collected from 216 companies. Our findings indicate that empowering the PSM department can improve NPD results internally, as well as externally through collaborative relationships. Furthermore, those factors that account for collaboration differences provide an essential context for researchers and management decision-makers.