A product centric examination of PD/SC alignment decisions at the nexus of product development and supply chains

Abstract

PurposeThis study applies a product centric view to examine three product development (PD) decisions that relate to a new product and its supply chain (SC): product design, sourcing strategy and product delivery strategy (PDS). The purpose of this paper is to expand the understanding of alignment decisions in this area to include concurrent compatibility between product design, SC strategy and market conditions.Design/methodology/approachThe study leverages existing theory to identify the key dimensions of alignment between product design, SC strategy and market conditions in a conceptual model. Using survey data from 124 new PD projects collected from various industries, the authors then empirically test the impact of multiple alignment decisions on new product introductions (NPIs) performance.FindingsThe results suggest that one specific project-level design parameter (interface intensity) is a key alignment dimension for product design decisions. Specifically, the authors find that alignment between interface intensity and sourcing strategy, as well as between interface intensity and clock-speed improves NPI performance. Additionally, the authors find evidence that three-way alignment between PDS, interface intensity and market volatility will benefit NPI performance.Research limitations/implicationsBecause the study is cross-sectional and conducted at the project level, future work should continue this line of inquiry with longitudinal exams and across a families of development projects.Practical implicationsThe findings inform the deliberate management of the PD/SC interface and provide managers with quantitative benefits of concurrent alignment decisions.Originality/valueThis study identifies and addresses important deficits in the understanding of concurrent alignment between product design, SC strategy and market conditions.