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Internationalization, product development and performance outcomes: A comparative study of 10 countries

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  • Hong, Paul
  • Roh, James
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    Abstract

    Product development is recognized as innovative value creating effort that has become important in the high-risk, globally competitive environment. This paper presents a model that links product development practices with product development performance in the context of internationalization. The empirical results base the analyses on International Manufacturing Strategy Survey (IMSS IV) data from 10 countries (i.e., Argentina, China, Canada, Denmark, Hungary, Italy, Netherlands, Sweden, Turkey and USA). We develop several hypotheses with respect to the relationships between product development practices and their outcome measures. We test the hypotheses with data from 458 manufacturing units. This study suggests that many small and medium sized firms adopt internationalization as their new competitive weapon. Small firms seem to be more effective in utilizing product design and manufacturing involvement while large firms standardize and formalize the product development practices. Both small and large firms utilize cross-functional work for achieving organizational and technological integration. The improvement efforts toward enhancing product development outcomes vary depending on different regions of the world.

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    Bibliographic Info

    Article provided by Elsevier in its journal Research in International Business and Finance.

    Volume (Year): 23 (2009)
    Issue (Month): 2 (June)
    Pages: 169-180

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    Handle: RePEc:eee:riibaf:v:23:y:2009:i:2:p:169-180

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    Web page: http://www.elsevier.com/locate/ribaf

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    Keywords: Internationalization Product development Integration Performance;

    References

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    1. Cantwell, John, 1995. "The Globalisation of Technology: What Remains of the Product Cycle Model?," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 155-74, February.
    2. Daniel Sullivan, 1994. "Measuring the Degree of Internationalization of a Firm," Journal of International Business Studies, Palgrave Macmillan, vol. 25(2), pages 325-342, June.
    3. Blomstrom, Magnus & Kokko, Ari, 1998. " Multinational Corporations and Spillovers," Journal of Economic Surveys, Wiley Blackwell, vol. 12(3), pages 247-77, July.
    4. Cantwell, John & Piscitello, Lucia, 2002. "The location of technological activities of MNCs in European regions: The role of spillovers and local competencies," Journal of International Management, Elsevier, vol. 8(1), pages 69-96.
    5. Mockaitis, Audra I. & Vaiginiene, Erika & Giedraitis, Vincent, 2006. "The internationalization efforts of lithuanian manufacturing firms--strategy or luck?," Research in International Business and Finance, Elsevier, vol. 20(1), pages 111-126, March.
    6. Yu-Ching Chiao & Kuo-Pin Yang & Chwo-Ming Yu, 2006. "Performance, Internationalization, and Firm-specific Advantages of SMEs in a Newly-Industrialized Economy," Small Business Economics, Springer, vol. 26(5), pages 475-492, 06.
    7. Madsen, Tage Koed, 2005. "Internationalization research: The impact of the Carnegie School," Scandinavian Journal of Management, Elsevier, vol. 21(4), pages 373-384, December.
    8. Richard L. Daft & Robert H. Lengel, 1986. "Organizational Information Requirements, Media Richness and Structural Design," Management Science, INFORMS, vol. 32(5), pages 554-571, May.
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    Cited by:
    1. 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.
    2. Yang, Ma Ga (Mark) & Hong, Paul & Modi, Sachin B., 2011. "Impact of lean manufacturing and environmental management on business performance: An empirical study of manufacturing firms," International Journal of Production Economics, Elsevier, vol. 129(2), pages 251-261, February.

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