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Product architecture, organizational capabilities and IT integration for competitive advantage

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  • Park, YoungWon
  • Fujimoto, Takahiro
  • Hong, Paul

Abstract

Increasingly, firms recognize the strategic implications of front-end product design for improving total cost effectiveness. Computer-aided design (CAD) is becoming firms’ competitive weapon beyond its traditional function as a product design tool. Yet, it is unclear how the full potential of IT system, particularly the usage patterns of 3D CAD system, may be realized through organizational capabilities. This paper presents a model of IT system configurations and CAD usage patterns. Next, a typology of IT system configurations is presented based on (1) the degree of CAD integration between assembly makers and suppliers and (2) the structure of product design information (i.e., product architecture). The product architecture of four electronic firms illustrates that information integration through organizational capabilities is more important than IT investment itself. The findings suggest that a Korean firm accomplishes a greater level of IT integration compared to the other two Japanese firms and thus attain better market performance. This study offers valuable insight on effective IT integration strategy for competitive advantage in the global market.

Suggested Citation

  • Park, YoungWon & Fujimoto, Takahiro & Hong, Paul, 2012. "Product architecture, organizational capabilities and IT integration for competitive advantage," International Journal of Information Management, Elsevier, vol. 32(5), pages 479-488.
    • Handle: RePEc:eee:ininma:v:32:y:2012:i:5:p:479-488
    DOI: 10.1016/j.ijinfomgt.2011.12.002
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    1. Youn, Sun Hee & Yang, Ma Ga (Mark) & Kim, Jin Hwan & Hong, Paul, 2014. "Supply chain information capabilities and performance outcomes: An empirical study of Korean steel suppliers," International Journal of Information Management, Elsevier, vol. 34(3), pages 369-380.
    2. Ravishankar, M.N. & Pan, Shan L., 2013. "Examining the influence of modularity and knowledge management (KM) on dynamic capabilities: Insights from a call center," International Journal of Information Management, Elsevier, vol. 33(1), pages 147-159.
    3. Chen, Kuan-Yang & Huan, Tzung-Cheng, 2022. "Explore how SME family businesses of travel service industry use market knowledge for product innovation," Journal of Business Research, Elsevier, vol. 151(C), pages 519-530.
    4. Arenas, Alvaro E. & Goh, Jie Mein & Urueña, Alberto, 2019. "How does IT affect design centricity approaches: Evidence from Spain’s smart tourism ecosystem," International Journal of Information Management, Elsevier, vol. 45(C), pages 149-162.
    5. Qinqin Wu & Mengjie Bi & Faiza Siddiqui & Yao Tang, 2023. "Assessing the Impact of Digital Trade on Enterprise Competitiveness: Evidence from Chinese A-Share Listed Companies," Journal of Industry, Competition and Trade, Springer, vol. 23(3), pages 329-362, December.
    6. Camba, Jorge D. & Contero, Manuel & Company, Pedro & Pérez, David, 2017. "On the integration of model-based feature information in Product Lifecycle Management systems," International Journal of Information Management, Elsevier, vol. 37(6), pages 611-621.

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