ANTECEDENTS AND CONSEQUENCES OF IPPD EFFECTIVENESS

Abstract

Team is the primary mechanism through which product development projects are executed. Despite regular theoretical discussions on the importance of cross-functional team and concurrent engineering to improve new product development projects, empirical studies on consequence of integrated product and process development (IPPD) effectiveness on teamwork is largely missing in existing product development literature. IPDD projects execute concurrent activities that go through several iterations before the deliverable of each stage are finalised. Based on information processing theory and goal-setting theory for team, this study hypothesise shared project mission, clarity of the project target, and customer and supplier involvement positively influences effectiveness of IPPD project. We further hypothesise that such effective IPPD leads to teamwork which can have a positive impact on project performance in terms of product development cost, product development time, and customer satisfaction. Primary data collected from 191 IPPD projects from U.S. automotive industry were analysed using structural equation modelling technique. All the hypotheses representing antecedents of effective IPPD and the consequence of effective IPPD were found to be supported in the current study.