INVOLVING ORGANIZATIONAL BUYERS IN NEW PRODUCT DEVELOPMENT

Prior research indicates that purchasing is the least important function in the new product development (NPD) process. With a sample of Australian firms active in product development, this study examines the effect of selected personal, organizational, and purchasing factors on the involvement of organizational buyers in the NPD process. The results show that perceived importance of the purchasing function, perceived confidence in the capabilities of buying personnel, effectiveness of supplier interaction, buying personnel mobility within the firm, risk-taking propensity, and interactions with other departments are significant positive correlates of organizational buyers' involvement in the NPD process. Top management cost sensitivity and perception of NPD as an exclusive marketing and engineering activity are significant barriers to their participation in the process. Managerial implications of the findings are presented.