Organizational coordination, development proficiency, and on-time completion of development and international rollout: A contingency analysis of external environments

Abstract

This study examines the moderating effects of external environmental variables on the relationships between organizational coordination, quality of implementation of new product development (NPD) activities, and on-time completion of (or timeliness in) product development and international new product rollout (INPR) among manufacturing firms in Korea. The results indicate that quality of marketing execution is of greater importance for achieving on-time NPD and multi-country rollout in markets where competitive intensity is high than when it is low. The positive effect of HQ-subsidiary relationships on INPR timeliness is strengthened in rapid rather than slower technology-change environments. By contrast, the positive effect of HQ-subsidiary relationships on INPR timeliness is weakened in high rather than lower competitive-intensity environments. In addition, the beneficial effect of cross-functional integration on NPD timeliness is weakened in markets characterized by a high rate of technological change. The article also discusses the theoretical and managerial implications of the findings.