'Grey-Box' and 'Black-Box' supplier-buyer relationship in product innovation under technology and market uncertainty

Abstract

The objective of this research study is to examine the effect of external uncertainty and supplier-buyer relationship conditions on supplier involvement in product innovation processes. A research model is proposed to investigate the connection between technology and market uncertainty, supplier-buyer relationships, supplier integration outcomes, and the role of black-box and grey-box integration. Data from high-tech companies were used to analyze the proposed hypotheses through PLS-SEM. The results reveal technology and market uncertainty are significant to supplier-buyer cooperation. Suppliers and buyers tend to work more intensively when technology and market uncertainty is high. Supplier-buyer relationship impacts supplier involvement outcomes, and this collaboration is more effective when black-box integration form is selected in the product innovation process. This research paper contributes to supplier involvement in product innovation literature by unfolding how firms can integrate suppliers under technology and market uncertainty and black-box and grey-box integration under product innovation projects. © 2018 IEEE.