The contribution of IT-leveraging capability for collaborative product development with suppliers

Abstract This paper investigates how Information Technology (IT) leveraging capability supports buyer-supplier collaboration in New Product Development (NPD). IT-leveraging capability is defined as the ability to effectively use IT functionalities to support IT-enabled NPD activities. We consider three dimensions of this capability: effective use of Project and Resource Management Systems (PRMS), effective use of Knowledge Management Systems (KMS) and effective use of Cooperative Work Systems (CWS). We consider the dynamics between these three dimensions, which have usually been treated as equal. Using an in-depth case study approach, we show that effective use of KMS and CWS are key dimensions to support collaboration, creating a unique source of competitive advantage. On the other hand, while effective use of PRMS does not help to create differentiation it is important to support the coordination of KMS and CWS. Furthermore, the three dimensions have different intensities of contribution depending on the NPD stage and supplier involvement configuration.