Introduction: The focus of this thesis is set on how green innovation can be facilitated through supplier relationships. Early supplier integration (ESI) can be defined as a collaboration between a purchasing firm and its supplier at an early stage of the product conceptualization and green innovation can be defined as the implementation of several management activities aimed at reducing environmental impact. Throughout the years researchers have examined the advantages and impact of green innovation, however, how manufacturing companies can manage early supplier integration to foster green innovation has not been explicitly studied. Purpose: The purpose of this research is to explore how early supplier integration can foster green innovation between manufacturer and supplier. Furthermore, this research proposes a conceptual model that addresses how early supplier integration can foster green innovation. Research Questions: Which are the current corporate practices for green innovation related to supplier relationships? What are the main prerequisites for green innovation in ESI? How can manufacturers manage their early supplier integration to foster green innovation?  Methodology: Based on the purpose and research questions in this thesis the authors deemed a qualitative research approach to be the most applicable research design. To gather in-depth data for the thesis, semi-structured interviews were chosen as the most appropriate data collection method. Respondents that were included based on their extensive knowledge regarding internal green integration, supplier selection, early supplier integration, co-development, and green innovation. Conclusion: This study provides knowledge regarding how early supplier integration can foster green innovation between manufacturer and supplier. It can be concluded that in order for early supplier integration to actively foster green innovation it is necessary to consider a holistic perspective by adapting four chronological concepts that are managed in the order: internal green integration, supplier selection, early supplier integration, and co-development.

Background: The needs of the consumers seem to develop at the same rate as the technology advancements and put more pressure on firms to produce new and innovative products at a faster pace. Research has shown that external sources can have a significant effect on the firms’ innovation performance, but the results are partial contradicting and more research is needed. Purpose: Investigate customer and supplier involvement in product innovation in Swedish manufacturing firms. Delimitations: The study was carried out to manufacturing firms in Sweden, as Swedish firms are the most innovative in Europe at this point in time. Only large and medium sized firms were under investigation as larger firms are more eager to innovate than smaller firms. Method: The research had a deductive quantitative approach. The data was collected through a questionnaire sent out by e-mail and 124 firms participated in the study. After assessing validity and reliability, the hypotheses were tested by multiple and single regression analysis. Conclusions: Firms that strives to improve their new product development process should seize their customer’s knowledge and use it to co-develop new products. Another important factor was to use lead users, as these will improve the innovativeness even more than “ordinary” customers. The study found no support for early supplier integration in the new product development process.