Facilitating New Product Development with Collaborative E-Commerce System: An Investigation in Semiconductor Industry

Abstract

The trend of vertical disintegration in semiconductor industry promotes more and more collaborative e-commerce applications for interchanging business information and facilitating timely and efficient communication between the specialized firms. While previous literature focused on the operational performance enhancement of e-commerce system (ECS) usage, this study contributed to increase understandings on the performance of using ECS to facilitate new product development (NPD) process through combining qualitative and quantitative methods in a two-phase case study. This study found that the specialized firms mainly leveraged the collaborative e-commerce systems to facilitate the ”technical dialogue” between design and process engineers to conquer the technological knowledge integration issues in NPD process. With support by real transactional data, ECS usage has positive impacts on NPD performance and the design-related ECS accounts for the most of performance variance. In general, the integrated device manufacturing and the fabless customers have different effects of using ECS on NPD performance. With respect to the firm's location, the eastern companies obtain better NPD performance than the western companies by using those ECS. This study suggests that a foundry company should develop different ECS services to support various customers in terms of organizational type and geographical location.