IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v200y2018icp68-82.html
   My bibliography  Save this article

Integration of product development capability and supply chain capability: The driver for high performance adaptation

Author

Listed:
  • Morita, Michiya
  • Machuca, Jose A.D.
  • Pérez Díez de los Ríos, José L.

Abstract

The research of the past decade indicates that the fit between product characteristics and supply chain characteristics has still not been specified. In line with this research issue, this paper proposes one key issue: whether companies can dynamically adjust the two effectively to address changing competitive circumstances along the product life cycle, rather than having just one specific life-long fit between the two sets of characteristics. Building on previous research addressing the concept of absolute supply chain orientation strategy, this study proposes that companies become high performers over time by strengthening and coordinating product development and supply chain management capabilities and adjusting their fit over time. This will be the focus of this research. To date, the mentioned approach which views the fit issue from the point of coordination between the two capabilities has not been considered in past research. This study has used diverse statistical methods on a sample of 303 plants from an international database obtained from a survey from fourteen countries, completed in 2016. Major implications of this study are to confirm that: First, the two above-mentioned capabilities counterbalance each other in order to maintain a positive relationship with each other. Second: a) companies are more competitive over time when they are high performers in both of these capabilities; b) high performers are able to leverage methods such as modularity and mass customization in their pursuit of fits; c) many average companies are advised to put relatively greater priority on strengthening supply chain capability than on product development capability as they endeavor to become high performers.

Suggested Citation

  • Morita, Michiya & Machuca, Jose A.D. & Pérez Díez de los Ríos, José L., 2018. "Integration of product development capability and supply chain capability: The driver for high performance adaptation," International Journal of Production Economics, Elsevier, vol. 200(C), pages 68-82.
    • Handle: RePEc:eee:proeco:v:200:y:2018:i:c:p:68-82
    DOI: 10.1016/j.ijpe.2018.03.016
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527318301415
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2018.03.016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Schoenherr, Tobias & Wagner, Stephan M., 2016. "Supplier involvement in the fuzzy front end of new product development: An investigation of homophily, benevolence and market turbulence," International Journal of Production Economics, Elsevier, vol. 180(C), pages 101-113.
    2. Carrillo, Janice E. & Franza, Richard M., 2006. "Investing in product development and production capabilities: The crucial linkage between time-to-market and ramp-up time," European Journal of Operational Research, Elsevier, vol. 171(2), pages 536-556, June.
    3. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    4. Nathalie Merminod & Gilles Pache & Richard Calvi, 2007. "The three paradoxes of supply chain management: illustrations and managerial implications," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 1(1/2), pages 60-78.
    5. Donald Gerwin & Nicholas J. Barrowman, 2002. "An Evaluation of Research on Integrated Product Development," Management Science, INFORMS, vol. 48(7), pages 938-953, July.
    6. Mohan V. Tatikonda & Mitzi M. Montoya-Weiss, 2001. "Integrating Operations and Marketing Perspectives of Product Innovation: The Influence of Organizational Process Factors and Capabilities on Development Performance," Management Science, INFORMS, vol. 47(1), pages 151-172, January.
    7. Marsillac, Erika & Roh, James Jungbae, 2014. "Connecting product design, process and supply chain decisions to strengthen global supply chain capabilities," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 317-329.
    8. Paiva, Ely Laureano, 2010. "Manufacturing and marketing integration from a cumulative capabilities perspective," International Journal of Production Economics, Elsevier, vol. 126(2), pages 379-386, August.
    9. Hu, Guiping & Bidanda, Bopaya, 2009. "Modeling sustainable product lifecycle decision support systems," International Journal of Production Economics, Elsevier, vol. 122(1), pages 366-375, November.
    10. Ortega Jimenez, Cesar H. & Machuca, Jose A.D. & Garrido-Vega, Pedro & Filippini, Roberto, 2015. "The pursuit of responsiveness in production environments: From flexibility to reconfigurability," International Journal of Production Economics, Elsevier, vol. 163(C), pages 157-172.
    11. Morita, Michiya & Machuca, Jose A.D. & Flynn, E. James & Pérez de los Ríos, José Luis, 2015. "Aligning product characteristics and the supply chain process – A normative perspective," International Journal of Production Economics, Elsevier, vol. 161(C), pages 228-241.
    12. Li, Suhong & Ragu-Nathan, Bhanu & Ragu-Nathan, T.S. & Subba Rao, S., 2006. "The impact of supply chain management practices on competitive advantage and organizational performance," Omega, Elsevier, vol. 34(2), pages 107-124, April.
    13. Allen Kaufman & Craig H. Wood & Gregory Theyel, 2000. "Collaboration and technology linkages: a strategic supplier typology," Strategic Management Journal, Wiley Blackwell, vol. 21(6), pages 649-663, June.
    14. V. Krishnan & Karl T. Ulrich, 2001. "Product Development Decisions: A Review of the Literature," Management Science, INFORMS, vol. 47(1), pages 1-21, January.
    15. Gaimon, Cheryl & Singhal, Vinod, 1992. "Flexibility and the choice of manufacturing facilities under short product life cycles," European Journal of Operational Research, Elsevier, vol. 60(2), pages 211-223, July.
    16. Vonderembse, Mark A. & Uppal, Mohit & Huang, Samuel H. & Dismukes, John P., 2006. "Designing supply chains: Towards theory development," International Journal of Production Economics, Elsevier, vol. 100(2), pages 223-238, April.
    17. Nathalie Merminod & Gilles Paché & Richard Calvi, 2007. "The three paradoxes of supply chain management: illustrations and managerial implications," Post-Print halshs-00188887, HAL.
    18. Qi, Yinan & Huo, Baofeng & Wang, Zhiqiang & Yeung, Hoi Yan Jeff, 2017. "The impact of operations and supply chain strategies on integration and performance," International Journal of Production Economics, Elsevier, vol. 185(C), pages 162-174.
    19. Wong, Christina W.Y. & Wong, Chee Yew & Boon-itt, Sakun, 2013. "The combined effects of internal and external supply chain integration on product innovation," International Journal of Production Economics, Elsevier, vol. 146(2), pages 566-574.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hai Thanh Pham & Chiara Verbano, 2022. "Identification and Characterization of Supply Chain Operational Risk Profiles in Manufacturing Companies," Sustainability, MDPI, vol. 14(4), pages 1-17, February.
    2. Jing Li & Chien-Wen Chen & Chi-Hui Wu & Hsing-Chun Hung & Ching-Torng Lin, 2020. "How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle Industry," Sustainability, MDPI, vol. 12(7), pages 1-24, April.
    3. Liu, Yulong & Ndubisi, Nelson Oly & Liu, Yang & Barrane, Fatima Zahra, 2020. "New product development and sustainable performance of Chinese SMMEs: The role of dynamic capability and intra-national environmental forces," International Journal of Production Economics, Elsevier, vol. 230(C).
    4. Mota, Renata de Oliveira & Godinho Filho, Moacir & Osiro, Lauro & Ganga, Gilberto Miller Devós & Mendes, Glauco Henrique de Sousa, 2021. "Unveiling the relationship between drivers and capabilities for reduced time-to-market in start-ups: A multi-method approach," International Journal of Production Economics, Elsevier, vol. 233(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Morita, Michiya & Machuca, Jose A.D. & Flynn, E. James & Pérez de los Ríos, José Luis, 2015. "Aligning product characteristics and the supply chain process – A normative perspective," International Journal of Production Economics, Elsevier, vol. 161(C), pages 228-241.
    2. Prajogo, Daniel & Toy, Jordan & Bhattacharya, Ananya & Oke, Adegoke & Cheng, T.C.E., 2018. "The relationships between information management, process management and operational performance: Internal and external contexts," International Journal of Production Economics, Elsevier, vol. 199(C), pages 95-103.
    3. Tolonen, Arto & Haapasalo, Harri & Harkonen, Janne & Verrollot, Jordan, 2017. "Supply chain capability creation – The creation of the supply chain readiness for a new product during product development process," International Journal of Production Economics, Elsevier, vol. 194(C), pages 237-245.
    4. Annika Lorenz & Michael Raven & Knut Blind, 2019. "The role of standardization at the interface of product and process development in biotechnology," The Journal of Technology Transfer, Springer, vol. 44(4), pages 1097-1133, August.
    5. Mohsen Jafari Songhori & Madjid Tavana & Takao Terano, 2020. "Product development team formation: effects of organizational- and product-related factors," Computational and Mathematical Organization Theory, Springer, vol. 26(1), pages 88-122, March.
    6. Jafarian, Ahmad & Rabiee, Meysam & Tavana, Madjid, 2020. "A novel multi-objective co-evolutionary approach for supply chain gap analysis with consideration of uncertainties," International Journal of Production Economics, Elsevier, vol. 228(C).
    7. Lin, Jun & Chai, Kah Hin & Brombacher, Aarnout C. & Wong, Yoke San, 2009. "Optimal overlapping and functional interaction in product development," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1158-1169, August.
    8. Hemant Sharma & Nagendra Sohani & Ashish Yadav, 2023. "A fuzzy SWARA-WASPAS based approach for determining the role of lean practices in enabling the supply chain agility," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(1), pages 492-511, March.
    9. Malacina, Iryna & Teplov, Roman, 2022. "Supply chain innovation research: A bibliometric network analysis and literature review," International Journal of Production Economics, Elsevier, vol. 251(C).
    10. Laura B. Cardinal & Scott F. Turner & Michael J. Fern & Richard M. Burton, 2011. "Organizing for Product Development Across Technological Environments: Performance Trade-offs and Priorities," Organization Science, INFORMS, vol. 22(4), pages 1000-1025, August.
    11. Hazhir Rahmandad & Nelson Repenning, 2016. "Capability erosion dynamics," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 649-672, April.
    12. Franck Brulhart & Uche Okongwu & Btissam Moncef, 2015. "Causal linkages between supply chain management practices and performance: a balanced scorecard strategy map perspective," Post-Print halshs-01239670, HAL.
    13. Yi Liu & Wenqian Li & Yuan Li, 2020. "Ambidexterity between low cost strategy and CSR strategy: contingencies of competition and regulation," Asia Pacific Journal of Management, Springer, vol. 37(3), pages 633-660, September.
    14. Barry L. Bayus, 2013. "Crowdsourcing New Product Ideas over Time: An Analysis of the Dell IdeaStorm Community," Management Science, INFORMS, vol. 59(1), pages 226-244, June.
    15. Jimmi Normann Kristiansen & Frank Gertsen, 2015. "Is Radical Innovation Management Misunderstood? Problematising The Radical Innovation Discipline," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 19(06), pages 1-23, December.
    16. Rana Basu & Prabha Bhola, 2015. "Exploring Quality Management Practices and Its Pattern Analysis in Indian Service SMEs," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 23(02), pages 199-235, June.
    17. Xihua Yu & Ning Cao & Hao Ren, 2023. "The Impact of Entrepreneurial Orientation on the Sustainable Innovation Capabilities of New Ventures: From the Perspective of Ambidextrous Learning," Sustainability, MDPI, vol. 15(11), pages 1-19, June.
    18. Nguyen Trong Luan & Doan Nguyen Duy Hau & Nguyen Thi Anh Thu, 2022. "The Influence of Green Product Development Performance to Enhance Enterprise Effectiveness and Innovation," Economies, MDPI, vol. 10(5), pages 1-21, May.
    19. Schriber, Svante & Löwstedt, Jan, 2015. "Tangible resources and the development of organizational capabilities," Scandinavian Journal of Management, Elsevier, vol. 31(1), pages 54-68.
    20. Berchicci, L. & Tucci, C.L., 2008. "Market Feedback and Team Commitment in Radical Product Innovation Process," ERIM Report Series Research in Management ERS-2008-069-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:200:y:2018:i:c:p:68-82. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.