Conflict management is crucial to the success of client–supplier collaborative new product development (NPD). This paper examines the critical success factors of conflict management in collaborative NPD. Using the Analytic Hierarchy Process (AHP), the importance of 4 categories of success factors, namely relationship management, conflict handling system, new product development process management and communication, totally 13 factors, are prioritized. The results show that communication management, trust and commitment to the collaboration are the most important factors. Based on the factors identified, a hierarchy model of conflict management is proposed, with which clients and suppliers can formulate action plans for better conflict management.
Recent literature has widely addressed the importance of client–supplier collaborative new product development (NPD) and extensive efforts have been devoted to study the management of the collaboration (Araujo et al., 1999, Atuahene-Gima, 1995, Cooper, 1998, Hartley et al., 1997, Primo & Admundson, 2002 and Wynstra & Pierick, 2000). Client–supplier collaboration is rather a complicated and difficult issue. Clients (some authors call it buyers) and suppliers are facing a number of problems in managing collaborative NPD (Wognum, Fisscher, & Weenink, 2002).
Researchers, in different fields, have recognized conflict as an important issue that affects organizational performance (Chan, 1989, Deutsch, 1973, Duarte & Davies, 2003, Dyer & Song, 1998, Gobeli et al., 1998, Rahim, 2001, Thomas, 1992 and Weinrauch & Anderson, 1982). Deutsch (1973) stated that conflict exists whenever incompatible activities occur. When social entities work together to achieve their objectives, their relationships may become incompatible and conflict would inevitably be induced (Rahim, 2001). In collaborative NPD, the relationship between clients and suppliers is incompatible as they always differ in such aspects as role, objective, culture and belief. Conflict is thus a natural phenomenon in collaborative NPD (Lam & Chin, 2003). In a study about conflict in client–supplier collaborative NPD, conflict intensity and conflict handling styles were found to have significant relationships with NPD performance (Lam & Chin, accepted for publication). The study also showed that conflict occurs intensively throughout NPD processes which include concept development, engineering design and production. Resolutions of conflict necessitate substantial efforts and time, which have an adverse impact on development costs and time. In addition, the outcomes of conflict resolutions affect the quality of products as well as the collaborative relationship. Despite conflict management is crucial to the success of collaborative NPD, literature review reveals that very few researchers have studied conflict management in the collaboration. This paper reports the main findings of the research which is aimed at identifying and prioritizing the critical success factors of conflict management in collaborative NPD.
Recent literature has widely addressed the importance of client–supplier collaborative new product development (NPD) and extensive efforts have been devoted to study the management of the collaboration (Araujo et al., 1999, Atuahene-Gima, 1995, Cooper, 1998, Hartley et al., 1997, Primo & Admundson, 2002 and Wynstra & Pierick, 2000). Client–supplier collaboration is rather a complicated and difficult issue. Clients (some authors call it buyers) and suppliers are facing a number of problems in managing collaborative NPD (Wognum, Fisscher, & Weenink, 2002).
Researchers, in different fields, have recognized conflict as an important issue that affects organizational performance (Chan, 1989, Deutsch, 1973, Duarte & Davies, 2003, Dyer & Song, 1998, Gobeli et al., 1998, Rahim, 2001, Thomas, 1992 and Weinrauch & Anderson, 1982). Deutsch (1973) stated that conflict exists whenever incompatible activities occur. When social entities work together to achieve their objectives, their relationships may become incompatible and conflict would inevitably be induced (Rahim, 2001). In collaborative NPD, the relationship between clients and suppliers is incompatible as they always differ in such aspects as role, objective, culture and belief. Conflict is thus a natural phenomenon in collaborative NPD (Lam & Chin, 2003). In a study about conflict in client–supplier collaborative NPD, conflict intensity and conflict handling styles were found to have significant relationships with NPD performance (Lam & Chin, accepted for publication). The study also showed that conflict occurs intensively throughout NPD processes which include concept development, engineering design and production. Resolutions of conflict necessitate substantial efforts and time, which have an adverse impact on development costs and time. In addition, the outcomes of conflict resolutions affect the quality of products as well as the collaborative relationship. Despite conflict management is crucial to the success of collaborative NPD, literature review reveals that very few researchers have studied conflict management in the collaboration. This paper reports the main findings of the research which is aimed at identifying and prioritizing the critical success factors of conflict management in collaborative NPD.
