Enhancement of product design capability in the high-tech manufacturing industry

Satisfying customer demand represents a challenge for product designers because manufacturers must clearly understand what design aspects meet customer desires to obtain a competitive advantage in the market. However, little empirical articles focus on examining robust design capability connects new technology and aesthetics, matches the manufacturing process, and meets customer needs. This paper addresses gaps and proposes a conceptual model that assesses the relationship among internal cross-functional coordination, external solid supply chains, and customer orientation, and design capability. The conceptual model was tested by 240 self-administrated questionnaires from contract manufacture practitioners in Taiwan and analysed by structural equation modelling (SEM). The results provide evidence that interfunctional coordination is a basis for building more effective supply chain architecture and customer orientation. Additionally, supply chain and customer orientation positively affect design capability, and design capability plays the critical role as a mediator in the improvement of new product performance. Implications are discussed.