SUMMARY In industries where value added by suppliers contributes significantly to the final product, the competitiveness of the value chain depends upon supplier performance (cost, quality and on‐time delivery). Despite the importance of supplier performance in new product development (NPD), most research has focused on supplier performance in operations. Few studies have focused on how product development practices of an original equipment manufacturer (OEM) influence OEM evaluations of supplier performance. This paper posits a model of the relationships among three factions: OEM practices that involve suppliers in design, concurrent engineering practices of the OEM and OEM assessments of supplier performance. This model is tested and cross‐validated using a sample of 406 NPD projects in Germany and the United States. The findings suggest that NPD practices of OEMs influence their perceptions of suppliers' performance.
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