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Journal of Applied Mathematics
Volume 2014 (2014), Article ID 542606, 12 pages
Research Article

New Product Development in an Emerging Economy: Analysing the Role of Supplier Involvement Practices by Using Bayesian Markov Chain Monte Carlo Technique

1Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia
2Taylor’s Business School, Taylor’s University, No. 1 Jalan Taylor’s, 47500 Subang Jaya, Selangor, Malaysia
3UWS Business School, University of the West of Scotland, Paisley PA1 2BE, UK

Received 20 September 2013; Accepted 2 December 2013; Published 8 January 2014

Academic Editor: Nachamada Blamah

Copyright © 2014 Kanagi Kanapathy et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


The research question is whether the positive relationship found between supplier involvement practices and new product development performances in developed economies also holds in emerging economies. The role of supplier involvement practices in new product development performance is yet to be substantially investigated in the emerging economies (other than China). This premise was examined by distributing a survey instrument (Jayaram’s (2008) published survey instrument that has been utilised in developed economies) to Malaysian manufacturing companies. To gauge the relationship between the supplier involvement practices and new product development (NPD) project performance of 146 companies, structural equation modelling was adopted. Our findings prove that supplier involvement practices have a significant positive impact on NPD project performance in an emerging economy with respect to quality objectives, design objectives, cost objectives, and “time-to-market” objectives. Further analysis using the Bayesian Markov Chain Monte Carlo algorithm, yielding a more credible and feasible differentiation, confirmed these results (even in the case of an emerging economy) and indicated that these practices have a 28% impact on variance of NPD project performance. This considerable effect implies that supplier involvement is a must have, although further research is needed to identify the contingencies for its practices.