An Empirical Study Of Supply Chain Members Involvement In Product Innovation: The Mediation Effect Of IFFE

Based on the perspective of the knowledge-based theory and resource dependence theory, this article makes a new analysis and definition of enterprises’ products innovation. Firstly, research makes a new elaboration and explanation of the open innovation mode from the perspective of resource dependence theory. The fundamental purpose of absorption and utilization of external innovation resources is to enhance the control of external resources, improve the independence of the enterprise itself, reduce the influence of the enterprise external environment’s uncertainty on the enterprise, and improve the enterprise’s ability to cope with risks, so as to improve the performance of product innovation. Members of the supply chain are important external innovation resources owners, but also the enterprise stakeholders who are the most closely relationship with the enterprise. By establishing a good relationship with them, enterprise can be more convenient to get the innovation resources. To integrate the innovation resources into product innovation, the enterprise can obtain more opportunities for innovation and improve their ability of innovation. But open innovation which absorbs mass external innovation resources can bring huge uncertainty to enterprise innovation. The main task of the fuzzy front end is to reduce the uncertainty of innovation process, identify the innovation opportunities, and improve product innovation performance.From the perspective of knowledge-based theory, this research makes a further analysis and argumentation of the core competitive resource for product innovation, the nature of the product innovation, the nature of fuzzy front end work content and the role of supply chain members in product innovation. This research get the following theory: Firstly, knowledge is the core of innovation resources and the fundamental source of enterprise competitive advantage. Secondly the essence of product innovation is the knowledge innovation. Thirdly the fuzzy front end stage of product innovation is the main stage of value creation, and the main work and task of this phase is to make the absorption, digestion and utilization of the external knowledge resources. By integrating the external and internal knowledge resources, enterprise forms its own unique knowledge which reflect on products and ultimately form a specific product concepts and definitions.Then from perspective of the transfer, absorption and utilization of tacit knowledge, the research analyzes the role of the supply chain members, finding that the role of supply chain members broke through the role of resource owners, and that they are also the transfer, integrator and creator of knowledge. Finally, by the mediation model of fuzzy front end and the moderating effect model of supply chain members involvement, the research analysis influence path of customer, supplier and internal manufacturer participate in the early stage of product design to the implementation of fuzzy front end and the product innovation performance. Theoretical hypotheses have been empirically tested through 168 valid questionnaires from China manufacturing enterprises. The results show that customer involvement,supplier involvement and manufacturer involvement has a significant positive effect on the implementation of fuzzy front end. The implementation of fuzzy front end has a significant positive effect on the new product development performance. In addition, customer and manufacturer involvement affect new product development performance through the implementation of fuzzy front end.The implementation of fuzzy front end has a mediating effect on the relationship among customer and manufacturer involvement and new product development performance. The positive effect of the implementation of the fuzzy front end of product innovation performance is further strengthened by supply chain members’ early involvement in product design. The related research results enrich the resource dependence theory and have a great significance for the enterprise management practice in the new product development.