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Exploring Enabling Factors for Purchasing Integration into the Innovation Process in a German Medium-sized System Integrator of Consumer Electronics Products

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Vogt, Ralf (2016) Exploring Enabling Factors for Purchasing Integration into the Innovation Process in a German Medium-sized System Integrator of Consumer Electronics Products. DBA thesis, University of Gloucestershire.

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Abstract

The generation of attractive innovations is one of the most important and complex tasks companies undertake, the process of open innovation is being used to support this endeavour. SMEs often face difficulties applying and commercialising external sources’ technologies for their own purposes due to liability of smallness and related lack of capability of co-ordination. In particular, small and medium-sized system integrators of electronic consumer products (SIs) are (1) highly dependent on close collaboration with external organisations, (2) have to cope with turbulent technology markets, and have to manage (3) the continuous shortening of innovation cycles. These factors necessitate small and mediumsized SIs of electronic consumer products to increase their dynamic capability to innovate, which subsequently forms the basis for the SIs’ sustainable competitiveness. The effective embedding of the Purchasing Organisation (PO) into the innovation outside-in process can potentially become a major driver in improving the overall innovation process and company performance. However, given academic research does not provide sufficient insight concerning relevant Enabling Factors (EFs) and related drivers. Therefore, academics allude to a demand for further research in the field of early purchasing involvement in the innovation process. In addition, purchasing practitioners point to the low maturity of Purchasing Organisations with regard to securing innovations. To explore relevant Enabling Factors for purchasing integration into the innovation process, the qualitative study design was based on an embedded case study inquiry with multiple units of analysis. Data collection and analysis was realised through a sequential qualitative  quantitative mixedmethod approach. For this reason, interviews were conducted with 7 purchasing experts from the medium-sized German television set manufacturer Loewe. To obtain insights as to the generalisability of the findings, a purposive selected sample of 11 purchasing experts from other SIs with high dependency on innovation suppliers were interviewed via webbased questionnaires. The study identified: EF1: External Interconnectedness EF2: Preferred Customer status Process EF3: Management Commitment to the PO EF4: External Interconnectedness EF5: Early Integration into Product Planning EF6: Degree of Professionalisation of the PO EF7: Innovation Management System and EF8: Open-minded Relations based on Trust as a relevant Enabling Factor. Furthermore, the study suggests direct relations between the EFs and 32 drivers that are formative to the related Enabling Factors. Based on the study findings, 14 strategic measures were defined via focus group interviews. In this way, the study contributes to given academic knowledge in the field of early purchasing involvement into new product development processes (NPD). With regard to such new product development processes, this study suggests integrating the PO, as a third element, into the R&D and marketing interface.

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Thesis (DBA)

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