Developing supplier capabilities for effective new product development under supply chain risk

Purpose This study aims to investigate the relationship between two key dimensions of supplier development strategy (i.e. efficiency-seeking and innovation-seeking) and new product development (NPD) effectiveness and explore whether this relationship changes under supply chain risk. Design/methodology/approach Using survey data from 356 Chinese companies, this study tests the proposed hypotheses. Findings The results reveal that both strategies of supplier development can improve the effectiveness of NPD, but the innovation-seeking supplier development strategy has a greater contribution. Furthermore, the positive impact of supplier development on NPD effectiveness becomes more pronounced, particularly in the presence of high levels of supply chain risk. Originality/value By differentiating supplier development strategies from a strategic intent perspective, this study expands the existing knowledge in supplier development literature and provides valuable insights into the way enterprises apply appropriate supplier development strategies to enhance the market success rate of their new products.