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Organizational Integration for Product Development: The Effects on Glitches, On‐Time Execution of Engineering Change Orders, and Market Success
Author(s) -
Koufteros Xenophon A.,
Rawski Greg E.,
Rupak Rauniar
Publication year - 2010
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.2009.00259.x
Subject(s) - new product development , automotive industry , product (mathematics) , process (computing) , business , process management , industrial organization , first mover advantage , marketing , computer science , engineering , geometry , mathematics , aerospace engineering , operating system
Deviations from requirements during the product development process can be considered as glitches. Fixing glitches, or problems, during the product development process consumes valuable resources, which may adversely affect product development time and hamper the firm's goal to pursue a first‐mover advantage. It is posited that an integrated organizational response can diminish incidences of glitches and improve the ability of the firm to respond to engineering changes, subsequently leading to improved market success. This organizational response frequently includes heavyweight product development managers who are seen as essential catalysts for internal integration. Though internal integration is vital, it is equally important to integrate with customers and suppliers alike because such network partners can provide access to information, knowledge, and unique and complementary resources that are otherwise unavailable to the firm. Findings, which are based on a sample of 191 product development projects in the automotive industry, suggest that some integration routines have a positive impact on product development outcomes and market success, while other routines can in fact hamper the collective effort.