Agile product development for integrated suppliers : A qualitative case study on the challenges of developing internal product development practices for an integrated supplier

Abstract: Product development has become essential in today’s technology driven marketplace. Currently, pointbased models such as the stage-gate model are applied in practice of several incumbent firms in the automotive industry. However, stage-gate models have been criticized for being too linear and plan focused as external pressures and internal complexity demand for faster and more flexible development, such as agile development. Although product development has a central role in the success of a firm, suppliers play a central role in helping firms achieve their product development goals. As a result, firms may undertake suppler development and integration initiatives to ensure quality and efficiency at the supplier. Utilizing supplier integration has shown positive effects on several performance outcomes. However, limited research on the effects of suppliers being integrated to deficient development practices has been published. Firms that integrate suppliers into point-based, documentation heavy processes could therefore potentially hinder internal development of flexible practices. Therefore, the aim of this study is to investigate how supplier integration challenges suppliers in adopting agile methods in product development and how these challenges can be addressed.  This study is based a qualitative, exploratory case study approach, including 13 interviews with various stakeholders within the case company together with extensive data from observations. The empirical data in combination with theories on agile development, traditional development, and supplier integration resulted in a proposition for adopting agile development approaches for integrated suppliers being locked-in to traditional development models. The findings indicate that integrated suppliers may face challenges in adopting agile methods due to requirements from the integrating firm on using traditional development methods. However, a possibility to utilize agile practices on the microperspective while retaining traditional development methods on the macro-perspective through a hybrid model enables adoption of agile methods for integrated suppliers. Although the possibility to adopt agile methods exist, the methods yield little benefits unless an agile leadership and vision is established. Therefore, a transition towards agile development also requires a transition in organizational culture to promote collaboration, distributed responsibility and collective intelligence.