Knowledge Sharing in Interorganizational Product Development Teams: The Effect of Formal and Informal Socialization Mechanisms*

Working collaboratively with suppliers is increasingly cited as a ‘‘best practice’’ in product development. The importance of sharing knowledge between buyer and supplier in this context has been well recognized, although comparatively little research exists on the interorganizational socialization mechanisms that facilitate it. The present research proposes and tests a theoretical model of the impact of formal and informal socialization mechanisms on the level of knowledge sharing within interorganizational product development projects and the subsequent effect on buyer firm performance. Results from this study of 111 manufacturing organizations in the United Kingdom largely support its hypotheses. It is revealed that informal socialization mechanisms (e.g., communication guidelines, social events) play an important role in facilitating interorganizational knowledge sharing, whereas formal socialization mechanisms (e.g., cross-functional teams, matrix reporting structures) act indirectly through informal socialization to influence knowledge sharing. The results also show that interorganizational knowledge sharing is positively associated with supplier contribution to development outcomes, which, in turn, improves buyer product development performance and, ultimately, financial performance. Product development managers are encouraged to build social ties between interorganizational development teams to increase the flow of knowledge and to improve both product development outcomes and financial performance.

[1]  D. Dillman.  Mail and internet surveys: The tailored design method, 2nd ed. , 2007 .

[2]  R. Handfield,et al.  Creating supply chain relational capital: The impact of formal and informal socialization processes , 2006 .

[3]  Stephan M. Wagner,et al.  Involving suppliers in product development: Insights from R&D directors and project managers , 2006 .

[4]  P. Cousins,et al.  THE IMPLICATIONS OF SOCIALIZATION AND INTEGRATION IN SUPPLY CHAIN MANAGEMENT , 2006 .

[5]  Ludwig Bstieler,et al.  Trust Formation in Collaborative New Product Development , 2006 .

[6]  William E. Souder,et al.  New Product Development Performance and the Interaction of Cross‐Functional Integration and Knowledge Management , 2005 .

[7]  R. Handfield,et al.  Supplier integration into new product development: coordinating product, process and supply chain design , 2005 .

[8]  Thomas Y. Choi,et al.  Building deep supplier relationships , 2004 .

[9]  G. Labianca,et al.  Group Social Capital and Group Effectiveness: The Role of Informal Socializing Ties , 2004 .

[10]  Peter Chalos,et al.  Determinants of the use of various control mechanisms in US-Chinese joint ventures , 2004 .

[11]  David L. Deeds,et al.  Honeymoons and Liabilities: The Relationship between Age and Performance in Research and Development Alliances , 2003 .

[12]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[13]  Melissa M. Appleyard,et al.  The Influence of Knowledge Accumulation on Buyer-Supplier Codevelopment Projects , 2003 .

[14]  R. M. Monczka,et al.  Understanding integrated global sourcing , 2003 .

[15]  R. Handfield,et al.  A Model of Supplier Integration into New Product Development , 2003 .

[16]  M. Kotabe,et al.  Gaining from vertical partnerships : Knowledge transfer, relationship duration and supplier performance improvement in the U.S. and Japanese automotive industries , 2003 .

[17]  Seungwha Chung,et al.  Performance effects of partnership between manufacturers and suppliers for new product development: the supplier's standpoint , 2003 .

[18]  Linda Argote,et al.  Managing Knowledge in Organizations: An Integrative Framework and Review of Emerging Themes , 2003, Manag. Sci..

[19]  Gregory N. Stock,et al.  Building Dynamic Capabilities in New Product Development through Intertemporal Integration , 2003 .

[20]  R. Handfield,et al.  The role of trust and relationship structure in improving supply chain responsiveness , 2002 .

[21]  Paul D. Cousins,et al.  A Conceptual Model for Managing Long-term Inter-organisational Relationships , 2002 .

[22]  Gary L. Ragatz,et al.  Benefits associated with supplier integration into new product development under conditions of technology uncertainty , 2002 .

[23]  J. Hagedoorn,et al.  External Sources of Innovative Capabilities: The Preferences for Strategic Alliances or Mergers and Acquisitions , 2002 .

[24]  Cipriano Forza,et al.  Survey research in operations management: a process‐based perspective , 2002 .

[25]  M. Primo,et al.  An exploratory study of the effects of supplier relationships on new product development outcomes , 2002 .

[26]  Patrick Cohendet,et al.  Technology transfer revisited from the perspective of the knowledge-based economy , 2001 .

[27]  R. Klassen,et al.  Experimental comparison of Web, electronic and mail survey technologies in operations management , 2001 .

[28]  Kenneth B. Kahn.  Market orientation, interdepartmental integration, and product development performance , 2001 .

[29]  E. Autio,et al.  SOCIAL CAPITAL, KNOWLEDGE ACQUISITION, AND KNOWLEDGE EXPLOITATION IN YOUNG TECHNOLOGY-BASED FIRMS , 2001 .

[30]  M. Couper,et al.  Web Surveys , 2001 .

[31]  Rajesh Nellore,et al.  Factors influencing success in integrated product development (IPD) projects , 2001, IEEE Trans. Engineering Management.

[32]  Akira Takeishi,et al.  Bridging inter‐ and intra‐firm boundaries: management of supplier involvement in automobile product development , 2001 .

[33]  E. McDonough,et al.  An investigation of the use of global, virtual, and colocated new product development teams , 2001 .

[34]  Daniel M. Cable,et al.  SOCIALIZATION TACTICS AND PERSON‐ORGANIZATION FIT , 2001 .

[35]  Mick P. Couper,et al.  Usability Evaluation of Computer-Assisted Survey Instruments , 2000 .

[36]  Sharon O'donnell,et al.  MANAGING FOREIGN SUBSIDIARIES: AGENTS OF HEADQUARTERS, OR AN INTERDEPENDENT NETWORK? , 2000 .

[37]  Anil K. Gupta,et al.  Knowledge flows within multinational corporations , 2000 .

[38]  G. Ahuja.  The duality of collaboration : Inducements and opportunities in the formation of interfirm linkages , 2000 .

[39]  Harbir Singh,et al.  Complementarity, status similarity and social capital as drivers of alliance formation , 2000 .

[40]  S. Vickery,et al.  The ability to minimize the timing of new product development and introduction: an examination of antecedent factors in the North American automobile supplier industry , 2000 .

[41]  D. Dillman.  Mail and internet surveys , 1999 .

[42]  R. Handfield,et al.  Involving Suppliers in New Product Development , 1999 .

[43]  Steven Postrel,et al.  Shared knowledge, “glitches,” and product development performance , 1999 .

[44]  Michael J. Lynskey,et al.  The Transfer of Resources and Competencies for Developing Technological Capabilities - The Case of Fujitsu-ICL , 1999 .

[45]  John N. Pearson,et al.  Strategically managed buyer–supplier relationships and performance outcomes , 1999 .

[46]  J. Johanson,et al.  Creating value through mutual commitment to business network relationships , 1999 .

[47]  P. Bentler,et al.  Cutoff criteria for fit indexes in covariance structure analysis : Conventional criteria versus new alternatives , 1999 .

[48]  Daniel R. Krause,et al.  An empirical investigation of supplier development: reactive and strategic processes , 1998 .

[49]  Jeffrey H. Dyer,et al.  The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage , 1998 .

[50]  Jinhong Xie,et al.  The Impact of Cross‐Functional Joint Involvement Across Product Development Stages: An Exploratory Study , 1998 .

[51]  Y. Doz,et al.  Alliance Advantage: The Art of Creating Value Through Partnering , 1998 .

[52]  R. Handfield,et al.  Success factors in strategic supplier alliances: The buying company perspective , 1998 .

[53]  P. Chalos,et al.  Management controls in Sino‐American joint ventures: a comparative case study , 1998 .

[54]  R. Gulati.  Alliances and networks , 1998 .

[55]  Shelby D. Hunt,et al.  Marketing Researcher Ethical Sensitivity: Conceptualization, Measurement, and Exploratory Investigation , 1998 .

[56]  Maria L. Kraimer,et al.  Organizational goals and values: A socialization model , 1997 .

[57]  M. Iansiti,et al.  Developing products on Internet time. , 1997, Harvard business review.

[58]  R. Handfield,et al.  Purchasing and Supply Chain Management , 1997 .

[59]  Edward F. McDonough,et al.  An empirical study of the relationships among co-location, integration, performance, and satisfaction , 1997 .

[60]  B. Nooteboom,et al.  Effects of trust and governance on relational risk. , 1997 .

[61]  J. Hagedoorn,et al.  The institutionalization and evolutionary dynamics of interorganizational alliances and networks. , 1997 .

[62]  B. Uzzi,et al.  Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness , 1997 .

[63]  Thomas V. Scannell,et al.  Success Factors for Integrating Suppliers into New Product Development , 1997 .

[64]  R. Grant.  Toward a Knowledge-Based Theory of the Firm,” Strategic Management Journal (17), pp. , 1996 .

[65]  Gabriel Szulanski.  Exploring internal stickiness: Impediments to the transfer of best practice within the firm , 1996 .

[66]  A. Griffin,et al.  PDMA Success Measurement Project: Recommended Measures for Product Development Success and Failure , 1996 .

[67]  W. Powell,et al.  Interorganizational Collaboration and the Locus of Innovation: Networks of Learning in Biotechnology. , 1996 .

[68]  M. Gordon,et al.  PUBLICATION RECORDS AND TENURE DECISIONS IN THE FIELD OF STRATEGIC MANAGEMENT , 1996 .

[69]  H. Marsh,et al.  An evaluation of incremental fit indices: A clarification of mathematical and empirical properties. , 1996 .

[70]  R. Gulati.  Social Structure and Alliance Formation Patterns: A Longitudinal Analysis , 1995 .

[71]  K. Eisenhardt,et al.  PRODUCT DEVELOPMENT: PAST RESEARCH, PRESENT FINDINGS, AND FUTURE DIRECTIONS , 1995 .

[72]  D. Littler,et al.  Factors Affecting the Process of Collaborative Product Development: A Study of UK Manufacturers of Information and Communications Technology Products , 1995 .

[73]  I. Cockburn,et al.  Measuring competence?: exploring firm effects in pharmaceutical research , 1994 .

[74]  R. M. Monczka,et al.  Effective Cross-Functional Sourcing Teams: Critical Success Factors , 1994 .

[75]  James Richardson.  Beyond Partnership: Strategies for Innovation and Lean Supply , 1994 .

[76]  A. Bonaccorsi,et al.  Strategic Partnerships in New Product Development: an Italian Case Study , 1994 .

[77]  Daniel T. Jones,et al.  From lean production to the lean enterprise , 1994 .

[78]  J. Hagedoorn.  Understanding the rationale of strategic technology partnering: Nterorganizational modes of cooperation and sectoral differences , 1993 .

[79]  E. Zajac,et al.  FROM TRANSACTION COST TO TRANSACTIONAL VALUE ANALYSIS: IMPLICATIONS FOR THE STUDY OF INTERORGANIZATIONAL STRATEGIES* , 1993 .

[80]  James C. Anderson,et al.  Monte Carlo Evaluations of Goodness of Fit Indices for Structural Equation Models , 1992 .

[81]  S. Kotha.  Mass Customization: The New Frontier in Business Competition , 1992 .

[82]  Daryl McKee,et al.  An organizational learning approach to product innovation , 1992 .

[83]  Mark S. Granovetter.  Economic Institutions as Social Constructions: A Framework for Analysis , 1992 .

[84]  F. Yammarino,et al.  Identifying Common Methods Variance With Data Collected From A Single Source: An Unresolved Sticky Issue , 1991 .

[85]  Kathleen A. Bentley.  A Discussion of the Link Between One Organization's Style and Structure and Its Connection With Its Market , 1990 .

[86]  Daniel A. Levinthal,et al.  ABSORPTIVE CAPACITY: A NEW PERSPECTIVE ON LEARNING AND INNOVATION , 1990 .

[87]  R. P. McDonald,et al.  Structural Equations with Latent Variables , 1989 .

[88]  James C. Anderson,et al.  STRUCTURAL EQUATION MODELING IN PRACTICE: A REVIEW AND RECOMMENDED TWO-STEP APPROACH , 1988 .

[89]  R. Bagozzi,et al.  On the evaluation of structural equation models , 1988 .

[90]  P. M. Podsakoff,et al.  Self-Reports in Organizational Research: Problems and Prospects , 1986 .

[91]  Richard L. Daft,et al.  Organizational information requirements, media richness and structural design , 1986 .

[92]  Mark S. Granovetter.  Economic Action and Social Structure: The Problem of Embeddedness , 1985, American Journal of Sociology.

[93]  J. Utterback.  William J. Abernathy , 1985 .

[94]  O. Williamson.  The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting , 1985 .

[95]  Terry A. Beehr,et al.  A test of the correspondence between self-reports and alternative data sources about work organizations , 1982 .

[96]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[97]  Gilbert A. Churchill,et al.  Consumer Socialization: A Theoretical and Empirical Analysis , 1978 .

[98]  J. Nunnally.  Psychometric Theory (2nd ed), New York: McGraw-Hill. , 1978 .

[99]  P. Blau.  Inequality and Heterogeneity: A Primitive Theory of Social Structure , 1978 .

[100]  J. Scott Armstrong,et al.  Estimating nonresponse bias in mail surveys. , 1977 .

[101]  J. V. Maanen,et al.  Toward a theory of organizational socialization , 1977 .

[102]  P. Lawrence,et al.  Organization and Environment: Managing Differentiation and Integration , 1967 .