Beyond Cost: Product Complexity and the Global Product Development Location Advantage

Discussions of location advantages in global product development are largely based on self-reported surveys, and often agnostic to product characteristics. We build on this previous work by investigating location advantages and the influence of product complexity using negative binomial models. W...

Full description

Bibliographic Details
Main Authors: Makumbe, Pedzi, Seering, Warren, Rebentisch, Eric
Format: Presentation
Published: 2014
Subjects:
Online Access:http://hdl.handle.net/1721.1/84087
_version_ 1811088990226350080
author Makumbe, Pedzi
Seering, Warren
Rebentisch, Eric
author_facet Makumbe, Pedzi
Seering, Warren
Rebentisch, Eric
author_sort Makumbe, Pedzi
collection MIT
description Discussions of location advantages in global product development are largely based on self-reported surveys, and often agnostic to product characteristics. We build on this previous work by investigating location advantages and the influence of product complexity using negative binomial models. We find that the likelihood of developing products in a country increases as its market size, number of engineering graduates and national capability increases. However, it neither varies with labor cost nor market growth rate. We also find that complex products are more likely to be developed in countries with high national capability, and national capability is directly related to firm capability.
first_indexed 2024-09-23T14:11:37Z
format Presentation
id mit-1721.1/84087
institution Massachusetts Institute of Technology
last_indexed 2024-09-23T14:11:37Z
publishDate 2014
record_format dspace
spelling mit-1721.1/840872019-04-11T07:29:43Z Beyond Cost: Product Complexity and the Global Product Development Location Advantage Makumbe, Pedzi Seering, Warren Rebentisch, Eric global product development location advantage complexity capability market size engineering workforce labor cost market growth rate Discussions of location advantages in global product development are largely based on self-reported surveys, and often agnostic to product characteristics. We build on this previous work by investigating location advantages and the influence of product complexity using negative binomial models. We find that the likelihood of developing products in a country increases as its market size, number of engineering graduates and national capability increases. However, it neither varies with labor cost nor market growth rate. We also find that complex products are more likely to be developed in countries with high national capability, and national capability is directly related to firm capability. 2014-01-21T14:03:16Z 2014-01-21T14:03:16Z 2009-08-24 Presentation Technical Report http://hdl.handle.net/1721.1/84087 Attribution-NonCommercial-ShareAlike 3.0 United States http://creativecommons.org/licenses/by-nc-sa/3.0/us/ application/pdf
spellingShingle global product development
location advantage
complexity
capability
market size
engineering workforce
labor cost
market growth rate
Makumbe, Pedzi
Seering, Warren
Rebentisch, Eric
Beyond Cost: Product Complexity and the Global Product Development Location Advantage
title Beyond Cost: Product Complexity and the Global Product Development Location Advantage
title_full Beyond Cost: Product Complexity and the Global Product Development Location Advantage
title_fullStr Beyond Cost: Product Complexity and the Global Product Development Location Advantage
title_full_unstemmed Beyond Cost: Product Complexity and the Global Product Development Location Advantage
title_short Beyond Cost: Product Complexity and the Global Product Development Location Advantage
title_sort beyond cost product complexity and the global product development location advantage
topic global product development
location advantage
complexity
capability
market size
engineering workforce
labor cost
market growth rate
url http://hdl.handle.net/1721.1/84087
work_keys_str_mv AT makumbepedzi beyondcostproductcomplexityandtheglobalproductdevelopmentlocationadvantage
AT seeringwarren beyondcostproductcomplexityandtheglobalproductdevelopmentlocationadvantage
AT rebentischeric beyondcostproductcomplexityandtheglobalproductdevelopmentlocationadvantage