Platform management

Abstract

Purpose – To identify some of the major issues and problems firms face, when they collaborate with suppliers in new product development. Design/methodology/approach – The paper presents a case study of a leading Danish hearing aid manufacturer. Findings – Early involvement of suppliers in new product development reduces time-to-market, but increases the risk that proprietary knowledge is leaked to the competitors. Therefore, the supplier approval process is very important. Research limitations/implications – The paper discusses the implications of platform management for new product development and sourcing strategies. The paper is based on a single case study. In order to generalize the findings, it is necessary to study more companies from different industries, with different technologies, competition, and contextual features. Practical implications – The paper illustrates the risk of single sourcing and raises the question, how buyers without leverage can become an interesting customer for large suppliers. Originality/value – The paper analyzes the implications of platform management for new product development and supply chain management at the interfaces between focal company and its suppliers and customers.