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Organizational Coordination for Project Interdependency in New Product Development

Author

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  • Kentaro Nobeoka

    (Kobe University)

Abstract

In many industries, the effective management of concurrent multiple projects that share components has become a critical issue. Firms need to coordinate engineers in different projects in order to leverage their design work and technical knowledge across more than one product. This study explores the influence of inter-project interdependencies on organizational coordination requirements. A questionnaire survey of 256 component engineers in the U.S. and Japanese automobile firms provides evidence that the organizational coordination required to manage component design - with and without inter-project interdependencies - differs significantly. For example, in projects with no dependencies on other projects, only cross-functional coordination has a significant influence on schedule and cost performance. But in projects with dependencies on other projects, both intra-functional coordination and cross-functional coordination have a strong impact on the performance of component design.

Suggested Citation

  • Kentaro Nobeoka, 1998. "Organizational Coordination for Project Interdependency in New Product Development," Kobe Economic & Business Review, Research Institute for Economics & Business Administration, Kobe University, vol. 42, pages 97-115, February.
    • Handle: RePEc:kob:review:feb1998::v:42:p:97-115
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