Buyer-supplier collaboration during emerging technology development

The purpose of this paper is to understand how buyers-suppliers collaborate during the development of emerging technologies. Using the relational view, the paper examines a high technology aerospace firm as it develops additive manufacturing technology with two suppliers. It is found that the radical novelty and high degree of technological uncertainty associated with emerging technologies lead to a small pool of capable suppliers, limited machine capacity and constrained raw material supply. Companies, therefore, turn to University Technology Centres (UTCs) to incubate new ideas and test prototypes before involving suppliers in development efforts. Companies also seek out government-funded catapult centres where buyers, suppliers and customers are co-located in a single facility, allowing them to interact and share knowledge on a regular basis. The study contributes to the relational view by identifying that regular interaction within collaborative relationships does not necessarily lead to knowledge spill-overs between buyers and suppliers during the development of emerging technologies. Instead, the study finds that knowledge exchange is facilitated when suppliers have the freedom to use intellectual property in non-competing industries and have guarantees of future business that allow them to invest in machine capacity and raw material supply.