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The effect of supply chain integration, modular production, and cultural distance on new product development: A dynamic capabilities approach

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  • Parente, Ronaldo C.
  • Baack, Daniel W.
  • Hahn, Eugene D.
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    Abstract

    Little research has examined how international firms' operations strategies affect dynamic capability creation or how cultural distance affects operations management. This study addresses these gaps by bridging the work on dynamic capabilities, two operations management techniques (product modularization and supplier integration) and cultural distance. Using a sample of 111 Brazilian automobile suppliers, the study finds that new product development is marginally increased by product modularization but decreased by supplier integration. Cultural distance negatively moderated these relationships. This research extends the dynamic capabilities literature and indicates that operations management strategy is an important part of the dynamic capability formation process.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 17 (2011)
    Issue (Month): 4 ()
    Pages: 278-290

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    Handle: RePEc:eee:intman:v:17:y:2011:i:4:p:278-290

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    Related research

    Keywords: Dynamic capability; Supplier integration; Modularization; New product development; Cultural distance;

    References

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    Cited by:
    1. Mauri, Alfredo J. & Neiva de Figueiredo, João, 2012. "Strategic Patterns of Internationalization and Performance Variability: Effects of US-Based MNC Cross-Border Dispersion, Integration, and Outsourcing," Journal of International Management, Elsevier, vol. 18(1), pages 38-51.

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