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

Zhao, Yanlu; Cao, Hui

doi:10.1016/j.ijproman.2015.08.008

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

Zhao, Yanlu; Cao, Hui

Authors

Yanlu Zhao yanlu.zhao@durham.ac.uk
Assistant Professor

Hui Cao

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
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

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Publisher Licence URL
http://creativecommons.org/licenses/by-nc-nd/4.0/

Copyright Statement
© 2015 This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/