ABSTRACT
Increasingly, the embedded knowledge, combined skill capabilities of the work force, and innovative capabilities are critical in ful¨lling customer needs. Accordingly, developing these organizational capabilities is an important strategic priority of ¨rms. Ÿe creation and di†usion of an innovative knowledge base is possible through cooperation between large manufacturers and component parts suppliers by means of e†ective information sharing and active communication practices. Final products manufactured by large original equipment manufacturers (OEMs) require an accurate understanding of customer requirements, which are translated through the cross-functional processes of product planning, product design, logistics, production, delivery to ultimate customers, and reliable a©er services. Ÿese processes show that larger manufacturers (OEM) and SME (suppliers) should manage information ®ows concurrently to e†ectively design, produce, and deliver their products (Schilli and Dai, 2006). In other words, a supplier’s PLM (product life cycle management) needs to keep up with the OEM’s PLM practices (Che, 2009).
