Uncertainty in collaborative NPD: Effects on the selection of technology and supplier

To gain competitive advantage, firms involve suppliers in New Product Development (NPD). However, uncertainty affects selection of suppliers and associated technologies, and selection outcomes in terms of commitment to one supplier or maintaining flexibility. We report on a case study of collaborative NPD with the aim to develop an energy storage unit. The case involved selection of both technology and supplier, where both were changed during the NPD. Drawing upon Hall et al. (2011), we analyze technological, organizational and commercial uncertainties. We demonstrate how technological, commercial and organizational uncertainties cause firms to seek flexibility rather than commitment to one supplier.