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Manufacturing Competence: A Key To Successful Supplier Integration

R. V. Haartman, L. Bengtsson
Published 2009 · Business, Engineering, Computer Science

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Extensive involvement of suppliers in new product development and manufacturing development has often been associated with superior performance. Some authors have also alleged that companies need comprehensive internal competencies, or absorptive capacity, in order to fully benefit from external expertise. This paper analyses this relationship on an operational level in manufacturing companies. Based on a large-scale survey it is shown that companies with greater internal manufacturing competencies gain significantly from supplier involvement in terms of most performance indicators, whereas those with lesser internal competencies have little to gain from such external cooperation.
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