The strategic role of R&D outsourcing practices and partners in the relationship between product modularization and new product development efficiency

PurposeThe study aims to explore the conditional relationships between product modularization and new product development (NPD) efficiency. It is postulated that R&D outsourcing plays an important mediating role. Furthermore, the level of competency trust is considered an essential factor in mod...

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Bibliographic Details
Published inJournal of manufacturing technology management Vol. 35; no. 1; pp. 185 - 202
Main Authors Wang, Xiaozhen, Lee, Hanna, Park, Kihyun, Lee, Gukseong
Format Journal Article
LanguageEnglish
Published Bradford Emerald Publishing Limited 02.01.2024
Emerald Group Publishing Limited
Subjects
Advanced manufacturing technologies
Collaboration
Cooperation
Cost control
Customization
Efficiency
Flexibility
Hypotheses
Manufacturing
Modularization
Outsourcing
Product design
Product development
Production costs
Productivity
R&D
Regression models
Research & development
Suppliers
Competency trust
NPD efficiency
Product modularization
R&D outsourcing
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Summary:PurposeThe study aims to explore the conditional relationships between product modularization and new product development (NPD) efficiency. It is postulated that R&D outsourcing plays an important mediating role. Furthermore, the level of competency trust is considered an essential factor in moderating the indirect effect of product modularization on NPD efficiency via R&D outsourcing practices.Design/methodology/approachDrawing on transaction cost economics theory, this study suggests a moderated mediation model that addresses how product modularization effectively promotes NPD efficiency via outsourcing practices. The hierarchical regression and PROCESS macro model were conducted to test the hypotheses based on survey data from 273 manufacturing firms in China.FindingsProduct modularization enhances NPD efficiency directly and indirectly through the external collaboration of R&D outsourcing. Furthermore, the role of product modularization in R&D outsourcing practices is more effective when the competency trust in R&D outsourcing partners is high.Originality/valueBy showing the critical role of external collaboration, this study provides valuable insights into how manufacturing firms utilize product modularization to achieve desired NPD performance more effectively.
ISSN:1741-038X
1758-7786
DOI:10.1108/JMTM-03-2023-0098