Abstract
In order to succeed in a rapidly changing environment with the market demands and a complex product development cycle, many companies have increasingly extended their product development activities across organizational boundaries. Involving suppliers in product development activities provides benefits such as cost reduction, development time reduction, reducing the chances for project delays, and facilitates the incorporation of new technologies. Despite these benefits, many researches have produced contradictory results, with some studies showing a negative relationship between supplier involvement and project performance. Some scholars are of the opinion that supplier involvement should always be restricted to non-core activities, products, or components especially when the R&D activities affect a firm's core competencies.
The initial literature review provides an overall idea on the existing theories and models and gives insights into the background review of the product development, supplier involvement and future supplier involvement in core competence products and businesses. However, gaps in the literature was identified concerning identifying core competence of an Organization. What are the reasons? if after the empirical study, the suppliers are involve and / or not involve on core competency product.
The purpose of this study is to identify the core competence activities of an organization and establish a framework for involving suppliers on core competencies of a firm. The thesis provides the in-depth reviews and suggested framework to overcome the gap.
