IDEAS home Printed from https://ideas.repec.org/a/inm/ororsc/v22y2011i4p1000-1025.html
   My bibliography  Save this article

Organizing for Product Development Across Technological Environments: Performance Trade-offs and Priorities

Author

Listed:
  • Laura B. Cardinal

    () (C. T. Bauer College of Business, University of Houston, Houston, Texas 77204)

  • Scott F. Turner

    () (Moore School of Business, University of South Carolina, Columbia, South Carolina 29208)

  • Michael J. Fern

    () (Fern Strategy Development, Inc., Santa Clara, California 95056)

  • Richard M. Burton

    () (Fuqua School of Business, Duke University, Durham, North Carolina 27708)

Abstract

This study examines how designing for product development influences project performance in distinct technological environments. Drawing on a series of computational experiments and paired-case comparisons of six product development projects, we specifically examine how new product development performance is affected by project design and the technological environment. By triangulating across the computational experiments and case studies, we find the existence of performance trade-offs in product development as well as the importance of performance priorities in influencing project design. These findings permit us to elaborate on existing contingency-based perspectives of new product development and put forward a novel mediating model. In this mediating model of product development, we suggest that the technological environment shapes performance priorities, which in turn influence project design and ultimately the performance outcomes of new product development efforts. This model further highlights that project designs can evolve as a function of performance outcomes, although this process can be inhibited by the presence of design evolution constraints. This research contributes significantly to our understanding of designing projects for new product development.

Suggested Citation

  • 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.
  • Handle: RePEc:inm:ororsc:v:22:y:2011:i:4:p:1000-1025
    DOI: 10.1287/orsc.1100.0577
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/orsc.1100.0577
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. George P. Huber & C. Chet Miller & William H. Glick, 1990. "Developing More Encompassing Theories About Organizations: The Centralization-Effectiveness Relationship as an Example," Organization Science, INFORMS, vol. 1(1), pages 11-40, February.
    2. Zhiang (John) Lin & Xia Zhao & Kiran M. Ismail & Kathleen M. Carley, 2006. "Organizational Design and Restructuring in Response to Crises: Lessons from Computational Modeling and Real-World Cases," Organization Science, INFORMS, vol. 17(5), pages 598-618, October.
    3. Utterback, James M. & Suarez, Fernando F., 1993. "Innovation, competition, and industry structure," Research Policy, Elsevier, vol. 22(1), pages 1-21, February.
    4. Andrew H. Van de Ven, 1986. "Central Problems in the Management of Innovation," Management Science, INFORMS, vol. 32(5), pages 590-607, May.
    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. Pavitt, Keith, 1998. "Technologies, Products and Organization in the Innovating Firm: What Adam Smith Tells Us and Joseph Schumpeter Doesn't," Industrial and Corporate Change, Oxford University Press, vol. 7(3), pages 433-452, September.
    7. 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.
    8. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    9. Deborah Dougherty, 1992. "Interpretive Barriers to Successful Product Innovation in Large Firms," Organization Science, INFORMS, vol. 3(2), pages 179-202, May.
    10. John R. Kimberly & Hamid Bouchikhi, 1995. "The Dynamics of Organizational Development and Change: How the Past Shapes the Present and Constrains the Future," Organization Science, INFORMS, vol. 6(1), pages 9-18, February.
    11. Laura B. Cardinal & Sim B. Sitkin & Chris P. Long, 2004. "Balancing and Rebalancing in the Creation and Evolution of Organizational Control," Organization Science, INFORMS, vol. 15(4), pages 411-431, August.
    12. William H. Glick & George P. Huber & C. Chet Miller & D. Harold Doty & Kathleen M. Sutcliffe, 1990. "Studying Changes in Organizational Design and Effectiveness: Retrospective Event Histories and Periodic Assessments," Organization Science, INFORMS, vol. 1(3), pages 293-312, August.
    13. 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.
    14. Rajshree Agarwal & Constance E. Helfat, 2009. "Strategic Renewal of Organizations," Organization Science, INFORMS, vol. 20(2), pages 281-293, April.
    15. V. Krishnan & Karl T. Ulrich, 2001. "Product Development Decisions: A Review of the Literature," Management Science, INFORMS, vol. 47(1), pages 1-21, January.
    16. Constantine Andriopoulos & Marianne W. Lewis, 2009. "Exploitation-Exploration Tensions and Organizational Ambidexterity: Managing Paradoxes of Innovation," Organization Science, INFORMS, vol. 20(4), pages 696-717, August.
    17. Christian Terwiesch & Christoph H. Loch, 1999. "Measuring the Effectiveness of Overlapping Development Activities," Management Science, INFORMS, vol. 45(4), pages 455-465, April.
    18. Van de Ven, Andrew R., 1986. "Central Problems in the Management of Innovation," Agricultural Research Policy Seminar 139708, University of Minnesota Extension.
    19. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-1171, September.
    20. von Hippel, Eric, 1990. "Task partitioning: An innovation process variable," Research Policy, Elsevier, vol. 19(5), pages 407-418, October.
    21. Nadia Bhuiyan & Donald Gerwin & Vince Thomson, 2004. "Simulation of the New Product Development Process for Performance Improvement," Management Science, INFORMS, vol. 50(12), pages 1690-1703, December.
    22. Laura B. Cardinal, 2001. "Technological Innovation in the Pharmaceutical Industry: The Use of Organizational Control in Managing Research and Development," Organization Science, INFORMS, vol. 12(1), pages 19-36, February.
    23. Mark Lehrer, 2005. "Science-driven vs. market-pioneering high tech: comparative German technology sectors in the late nineteenth and late twentieth centuries," Industrial and Corporate Change, Oxford University Press, vol. 14(2), pages 251-278, April.
    24. de Jong, Jeroen P.J. & Marsili, Orietta, 2006. "The fruit flies of innovations: A taxonomy of innovative small firms," Research Policy, Elsevier, vol. 35(2), pages 213-229, March.
    25. Daniele Archibugi, 2001. "Pavitt'S Taxonomy Sixteen Years On: A Review Article," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(5), pages 415-425.
    26. Carlo Salvato, 2009. "Capabilities Unveiled: The Role of Ordinary Activities in the Evolution of Product Development Processes," Organization Science, INFORMS, vol. 20(2), pages 384-409, April.
    27. Aaron J. Shenhar, 2001. "One Size Does Not Fit All Projects: Exploring Classical Contingency Domains," Management Science, INFORMS, vol. 47(3), pages 394-414, March.
    28. J. Myles Shaver, 1998. "Accounting for Endogeneity When Assessing Strategy Performance: Does Entry Mode Choice Affect FDI Survival?," Management Science, INFORMS, vol. 44(4), pages 571-585, April.
    29. Sebastian Raisch & Julian Birkinshaw & Gilbert Probst & Michael L. Tushman, 2009. "Organizational Ambidexterity: Balancing Exploitation and Exploration for Sustained Performance," Organization Science, INFORMS, vol. 20(4), pages 685-695, August.
    30. Brusoni, Stefano & Prencipe, Andrea, 2001. "Unpacking the Black Box of Modularity: Technologies, Products and Organizations," Industrial and Corporate Change, Oxford University Press, vol. 10(1), pages 179-205, March.
    31. Raymond E. Levitt & Jan Thomsen & Tore R. Christiansen & John C. Kunz & Yan Jin & Clifford Nass, 1999. "Simulating Project Work Processes and Organizations: Toward a Micro-Contingency Theory of Organizational Design," Management Science, INFORMS, vol. 45(11), pages 1479-1495, November.
    32. Keith Pavitt, 2002. "Innovating routines in the business firm: what corporate tasks should they be accomplishing?," Industrial and Corporate Change, Oxford University Press, vol. 11(1), pages 117-133, February.
    33. Yuqing Ren & Kathleen M. Carley & Linda Argote, 2006. "The Contingent Effects of Transactive Memory: When Is It More Beneficial to Know What Others Know?," Management Science, INFORMS, vol. 52(5), pages 671-682, May.
    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. Ronald Klingebiel & Peter Esser, 2020. "Stage-Gate Escalation," Strategy Science, INFORMS, vol. 5(4), pages 311-329, December.
    2. Hicham Sebti & Narjes Sassi & Benoît Gerard, 2017. "Performance des équipes temporaires: Analyse des interactions et de l'usage de la matérialité dans la construction de rôles," Post-Print hal-01907478, HAL.
    3. Richard M. Burton & Børge Obel, 2011. "Computational Modeling for What-Is, What-Might-Be, and What-Should-Be Studies---And Triangulation," Organization Science, INFORMS, vol. 22(5), pages 1195-1202, October.
    4. Sheen S. Levine & Michael J. Prietula, 2012. "How Knowledge Transfer Impacts Performance: A Multilevel Model of Benefits and Liabilities," Organization Science, INFORMS, vol. 23(6), pages 1748-1766, December.
    5. Xue Cheng & Qingpu Zhang, 2018. "How to Develop the Interdisciplinary Innovation Teams Sustainably?—A Simulation Model from a Perspective of Knowledge Fission and Fusion," Sustainability, MDPI, Open Access Journal, vol. 10(9), pages 1-21, September.
    6. Barbara Brenner & Björn Ambos, 2013. "A Question of Legitimacy? A Dynamic Perspective on Multinational Firm Control," Organization Science, INFORMS, vol. 24(3), pages 773-795, June.
    7. Samina Karim & Aseem Kaul, 2015. "Structural Recombination and Innovation: Unlocking Intraorganizational Knowledge Synergy Through Structural Change," Organization Science, INFORMS, vol. 26(2), pages 439-455, April.
    8. John Joseph & Ronald Klingebiel & Alex James Wilson, 2016. "Organizational Structure and Performance Feedback: Centralization, Aspirations, and Termination Decisions," Organization Science, INFORMS, vol. 27(5), pages 1065-1083, October.

    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. Chang, Yuan-Chieh & Chen, Min-Nan, 2016. "Service regime and innovation clusters: An empirical study from service firms in Taiwan," Research Policy, Elsevier, vol. 45(9), pages 1845-1857.
    2. Koryak, Oksana & Lockett, Andy & Hayton, James & Nicolaou, Nicos & Mole, Kevin, 2018. "Disentangling the antecedents of ambidexterity: Exploration and exploitation," Research Policy, Elsevier, vol. 47(2), pages 413-427.
    3. 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.
    4. Gopesh Anand & John Gray & Enno Siemsen, 2012. "Decay, Shock, and Renewal: Operational Routines and Process Entropy in the Pharmaceutical Industry," Organization Science, INFORMS, vol. 23(6), pages 1700-1716, December.
    5. de Jong, Jeroen P.J. & Marsili, Orietta, 2006. "The fruit flies of innovations: A taxonomy of innovative small firms," Research Policy, Elsevier, vol. 35(2), pages 213-229, March.
    6. Sylvain Lenfle & Jonas Söderlund, 2019. "Large-Scale Innovative Projects as Temporary Trading Zones: Toward an Interlanguage Theory," Post-Print hal-02390158, HAL.
    7. Markus Kreutzer & Laura B. Cardinal & Jorge Walter & Christoph Lechner, 2016. "Formal and Informal Control as Complement or Substitute? The Role of the Task Environment," Strategy Science, INFORMS, vol. 1(4), pages 235-255, December.
    8. Rauniar, Rupak & Rawski, Greg, 2012. "Organizational structuring and project team structuring in integrated product development project," International Journal of Production Economics, Elsevier, vol. 135(2), pages 939-952.
    9. 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.
    10. Gina Colarelli O'Connor & Mark P. Rice & Lois Peters & Robert W. Veryzer, 2003. "Managing Interdisciplinary, Longitudinal Research Teams: Extending Grounded Theory-Building Methodologies," Organization Science, INFORMS, vol. 14(4), pages 353-373, August.
    11. Robertson, Paul L. & Casali, G.L. & Jacobson, David, 2012. "Managing open incremental process innovation: Absorptive Capacity and distributed learning," Research Policy, Elsevier, vol. 41(5), pages 822-832.
    12. Chang, Dae Ryun & Cho, Hang, 2008. "Organizational memory influences new product success," Journal of Business Research, Elsevier, vol. 61(1), pages 13-23, January.
    13. Badir, Yuosre F. & Büchel, Bettina & Tucci, Christopher L., 2009. "The performance impact of intra-firm organizational design on an alliance's NPD projects," Research Policy, Elsevier, vol. 38(8), pages 1350-1364, October.
    14. Sylvain Lenfle, 2008. "Exploration and Project Management," Post-Print hal-00404168, HAL.
    15. Arman Avadikyan & Gilles Lambert & Christophe Lerch, 2016. "A Multi-Level Perspective on Ambidexterity: The Case of a Synchrotron Research Facility," Working Papers of BETA 2016-44, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    16. Francesco Bogliacino & Mario Pianta, 2016. "The Pavitt Taxonomy, revisited: patterns of innovation in manufacturing and services," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 33(2), pages 153-180, August.
    17. Anil K. Gupta & Paul E. Tesluk & M. Susan Taylor, 2007. "Innovation At and Across Multiple Levels of Analysis," Organization Science, INFORMS, vol. 18(6), pages 885-897, December.
    18. Sofia Patsali, 2019. "Opening the black box of university-suppliers' co-invention: some field study evidence," Working Papers of BETA 2019-46, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    19. Stefano Denicolai & Antonella Zucchella & Federico Moretti, 2018. "Not So Similar After All: Exploring The Diversity Of Strategic Orientations For Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-33, May.
    20. Giovanni Dosi & Richard Nelson, 2013. "The Evolution of Technologies: An Assessment of the State-of-the-Art," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 3-46, June.

    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:inm:ororsc:v:22:y:2011:i:4:p:1000-1025. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Matthew Walls). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.