Control systems in outsourcing new product development: role of globalization and digitizability

Abstract

PurposeThe purpose of this paper is twofold: first, to propose that the nature and degree of control during new product development (NPD) outsourcing depends upon its initiation stage or implementation stage; second, to delineate the moderating effect of globalization and digitizability that further influence the link between NPD stage and control systems.Design/methodology/approachThe authors propose a conceptual framework and develop a series or propositions.FindingsThe nature and degree of control systems required in NPD is contingent upon the stage of the NPD process and this relationship is moderated by the degree of globalization and digitizability.Research limitations/implicationsThe paper offers a conceptual platform that can be explored in future empirical research. The paper offers a series of propositions as well as measurement items to enable this task.Practical implicationsThe research underscores the idea that instituting appropriate control systems in outsourcing NPD is a complex process that requires careful consideration of the nature of the activity, the nature of the control and firm strategy.Originality/valueThis paper is the first to conceptually examine the domain of the three-way intersection of NPD stage-gate process, outsourcing relationships and control systems. By doing so, the authors extend each of the three individual research domains in new directions as well as enhance the understanding of the interrelationships among these three domains.