Managing uncertainty and equivocality in joint process development projects

• Collaborative information processing activities are important in early stages of joint process development projects.
• Early end-user involvement provides vital information and reduces uncertainty.
• Joint problem solving between buyer and suppliers team members reduces equivocality.
• Uncertainty decreases budget performance in joint process development projects.
• The results highlight the importance of distinguishing between uncertainty and equivocality.

Process development is key to competitiveness in process industries. However, budget overruns frequently plague process development projects which span organizational boundaries to involve both buyers and suppliers. We identify uncertainty and equivocality as key antecedents causing such negative effects, and investigate the reduction and performance implications of these two variables. An empirical survey of 52 joint process development projects show that project teams reduce uncertainty through early end-user involvement, whereas equivocality can be reduced by joint problem-solving activities among buyers and suppliers.