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Original Equipment Manufacturer (original + equipment_manufacturer)
Selected AbstractsOpen innovation in the automotive industryR & D MANAGEMENT, Issue 3 2010Serhan Ili Automotive Original Equipment Manufacturers (OEM) have historically invested in their own research and development (R&D) to boost their innovativeness. Because of an increasing innovation and cost pressure, the automotive industry needs to look outside their own boundaries to escape from this productivity dilemma. While there is a tendency to look outside for external sources to increase the innovativeness, there are hardly any external paths to market outside the current business yet. Our study shows that Open Innovation proves to be more adequate in the attempt to achieve a better R&D productivity for companies in the automotive industry than a closed innovation model. [source] OEM New Product Development Practices: The Case of the Automotive IndustryJOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 3 2006Gioconda Quesada SUMMARY In industries where value added by suppliers contributes significantly to the final product, the competitiveness of the value chain depends upon supplier performance (cost, quality and on-time delivery). Despite the importance of supplier performance in new product development (NPD), most research has focused on supplier performance in operations. Few studies have focused on how product development practices of an original equipment manufacturer (OEM) influence OEM evaluations of supplier performance. This paper posits a model of the relationships among three factions: OEM practices that involve suppliers in design, concurrent engineering practices of the OEM and OEM assessments of supplier performance. This model is tested and cross-validated using a sample of 406 NPD projects in Germany and the United States. The findings suggest that NPD practices of OEMs influence their perceptions of suppliers' performance. [source] Bringing High Technology to Market: Successful Strategies Employed in the Worldwide Software IndustryTHE JOURNAL OF PRODUCT INNOVATION MANAGEMENT, Issue 6 2006Chris Easingwood The launch stage can be critical for many new products, but particularly so for technology-intensive ones. This study examines this key stage in a high-tech sector: the worldwide computer software industry. Using a research instrument developed across a number of high-tech sectors, but adapted to the targeted sector, it describes a worldwide telephone-based survey of 300 organizations, resulting in 190 interviews, a response rate of 63%. It shows that five distinct and interpretable strategies are employed: (1) alliance strategy involves forming early strategic alliances as well as tactical alliances at the execution stage together with the development of unique distribution channels; (2) targeted low risk attempts to reduce the risk of adoption among identified segments by producing versions of the product specifically customized to the segments; (3) low-price original equipment manufacturer (OEM) is the only price-driven strategy and combines low price with channel building to OEMs who are looking for attractive price-to-performance ratios; (4) broadly based market preparation is an early-stage strategy that concentrates on educating the market vis-à-vis the technology and developing channels; and (5) niche-based technological superiority uses a technologically superior product to dominate a niche and corresponds closely to the chasm-crossing strategy expounded by Moore and others. Regarding superior product performance, successful software companies first of all engage in a broadly based preparation of the market but switch to a targeted strategy at the following stages of positioning and execution, built around superior technological performance and reduced risk. A somewhat different mix of strategies is adopted when the objective is superior market development, namely opening up new markets, reaching new customers, and developing new product platforms. Again the mix includes broadly based market preparation, this time along with alliances. This strategy is very much about working with partners. The broadly based market preparation strategy is key for both objectives, is long term in nature, and avoids narrowly defined niches. It seems that starting broad based and narrowing down, perhaps to a niche, only at a later stage when this is clearly the appropriate thing to do, pays dividends. [source] Supply Management Under High Goal Incongruence: An Empirical Examination of Disintermediation in the Aerospace Supply ChainDECISION SCIENCES, Issue 3 2008Christian L. Rossetti ABSTRACT Aftermarket sales and profits are becoming an increasingly important part of an original equipment manufacturer's (OEM) business model. Because replacement parts often do not require further manufacturing, OEMs act as intermediaries in the aftermarket. As with any intermediary, the OEM must concern itself with suppliers disintermediating its supply chain selling replacement parts directly to the OEM's customers. We frame supply chain disintermediation (SCD) as a principal,agent contracting problem between an OEM buyer and a supplier. Hypotheses relate contract conditions, goal incongruence, supplier capabilities and contract enforcement to SCD. The data are collected from the aerospace industry using a multimethod study, combining an Internet-based survey with archival data. Causal modeling with structural equation modeling (SEM) shows general support for the hypotheses. Particularly, SCD is positively related to buyer,supplier goal incongruence. The agency model offers insights that differ from previous transaction-cost-based models of buyer,supplier relationships. OEM buyers with a lucrative aftermarket should consider aligning goals through incentives rather than relying entirely on economic hostages associated with specific assets. [source] Technology-Based New Product Development Partnerships,DECISION SCIENCES, Issue 2 2006John E. Ettlie ABSTRACT Hypotheses were developed to capture the dynamic capabilities that result from interfirm partnerships during the joint new product development (NPD) process,the ability to build, integrate, and reconfigure existing resources to adapt to rapidly changing environments. These capabilities, in turn, were proposed to have a positive impact on NPD performance outcomes: (a) proportion of new product success and (b) superior new product commercialization. In contexts where the locus of innovation is rapidly changing, the impact of interfirm NPD dynamic capabilities was hypothesized to be diminished in high-technology contexts, especially for buyers (original equipment manufacturers) and to a lesser extent for suppliers. Still, technology-based interfirm NPD partnerships were predicted to ultimately outperform low-technology ones in both NPD performance outcomes. Finally, information technology (IT) support for NPD was hypothesized to influence the interfirm NPD partnership's dynamic capabilities. Using survey data from 72 auto company managers and their suppliers, the proposed model in which IT support for NPD influences the success of interfirm NPD partnerships through the mediating role of interfirm NPD partnership dynamic capabilities in high- and low-technology contexts was generally supported. The results shed light on the nature of technology-based interfirm NPD partnerships and have implications for their success. Theoretical and managerial implications are discussed. [source] Strategic Responses to Environmental Regulation in the U.K. Automotive Sector: The European Union End-of-Life Vehicle Directive and the Porter HypothesisJOURNAL OF INDUSTRIAL ECOLOGY, Issue 4 2006Jo Crotty Summary As of 1 January 2006 all automotive OEMs (original equipment manufacturers) and component manufacturers operating within the European Union will need to comply with the End-of-Life Vehicle Directive (referred to hereafter as the EU ELV Directive). The EU ELV Directive compels all OEMs to take back and dismantle all motor vehicles for domestic use at the end of their useful lives. Each component part will then be either reused or recycled. To this end, the ultimate goal of the EU ELV Directive is that all motor vehicles for domestic use will have a reuse or recyclable content of 85% at the end of their useful lives, moving toward 95% by 2015. The burden of the EU ELV Directive falls on both the OEMs and their component manufacturers, forcing them to innovate and "design for disassembly." This being the case, it offers a unique real world example with which to test the Porter Hypothesis. Porter asserts that strict, correctly formulated environmental regulation can offer a firm secondary benefits through improved product design and the reduction of waste. This in turn allows the firm to offset the cost of compliance. Because the EU ELV Directive has been fashioned to force firms into a process of innovation and redesign, the magnitude of these so-called offsets can be judged. This article employs Rugman and Verbeke's 1998 strategic matrix of firm response to environmental regulation to examine qualitative details of the strategic response of automotive component manufacturers and OEMs in the United Kingdom to the demands of the directive to judge the volume of offsets generated. This analysis shows no support for the Porter Hypothesis and challenges the assumptions of Rugman and Verbeke's model. [source] | ||||||||||