Managing the supply side for product development in China: a Guanxi network approach

Based on the IMP research tradition this paper regards relationships and networks as key issues in the product development and supply management agenda. Within business networks, co-development is only possible to be analysed when emphasis is placed on interdependences and interactive relationships. Co-development usually implies close relationships that allow companies to rely on each other's resources. Close relationships imply interdependences, which may improve companies' technical and product development. By looking at the actual interactions - between a UK company and its Chinese suppliers - that led to an innovative solution and a successful product launch, evolving relationship patterns are identified and analysed in a case study. Both the literature review and case study findings highlight the importance of the 'guanxi' concept (meaning interpersonal relationships in Mandarin) when analysing business-to-business networks in China. Hence, it is suggested that guanxi-based thinking and acting should be incorporated into the interaction model when considering business networking that embrace China. 'Guanxi' broadens the validity of the interaction model, in terms of geographical proximity, and deepens its theoretical base. The case study provides valuable insights for supply management under a product development context in China. In practice, the main point of interest is that Chinese suppliers are important 'resource' providers as well as 'network' providers. Hence, it is suggested that guanxi practice should be reflected into theoretical developments.

Engineering design knowledge management in de-centralised virtual enterprises

The problems of collaborative engineering design and knowledge management at the conceptual stage in a network of dissimilar enterprises was investigated. This issue in engineering design is a result of the supply chain and virtual enterprise (VE) oriented industry that demands faster time to market and accurate cost/manufacturing analysis from conception. The solution consisted of a de-centralised super-peer net architecture to establish and maintain communications between enterprises in a VE. In the solution outlined below, the enterprises are able to share knowledge in a common format and nomenclature via the building-block shareable super-ontology that can be tailored on a project by project basis, whilst maintaining the common nomenclature of the ‘super-ontology’ eliminating knowledge interpretation issues. The two-tier architecture layout of the solution glues together the peer-peer and super-ontologies to form a coherent system for both internal and virtual enterprise knowledge management and product development.