Product Complexity and Mode Choice in Global Product Development

Despite the growth in the practice of global product development, little work has been done to understand factors that influence mode choice in global product development. Our research fills this gap in the literature by empirically investigating variables that drive firms to either globally outs...

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Main Authors: Makumbe, Pedzi, Seering, Warren, Rebentisch, Eric
格式: Presentation
出版: 2014
主題:
在線閱讀:http://hdl.handle.net/1721.1/84106
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author Makumbe, Pedzi
Seering, Warren
Rebentisch, Eric
author_facet Makumbe, Pedzi
Seering, Warren
Rebentisch, Eric
author_sort Makumbe, Pedzi
collection MIT
description Despite the growth in the practice of global product development, little work has been done to understand factors that influence mode choice in global product development. Our research fills this gap in the literature by empirically investigating variables that drive firms to either globally outsource, globally partner or develop modules themselves in a foreign country. We assume a product-centric view, and combine the transaction cost theory and the resource based view of the firm to explain mode choices based on the analysis of electromechanical products developed across Asia, Europe, the Middle East, and South America for (or by) American firms. Though we focus on complexity, we address product content specificity, product strategic importance and designer’s technological capability as well. We find significant relationships between the type of global product development and the product characteristics. However, the significance of the relationship between complexity and the mode varies by region when we divide the world into emerging countries and mature countries. While the relationship is significant in the emerging countries, it is not significant in mature countries. These findings have implications for decision making in systematically assigning modes of development to different products being developed globally.
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spelling mit-1721.1/841062019-04-12T20:43:30Z Product Complexity and Mode Choice in Global Product Development Makumbe, Pedzi Seering, Warren Rebentisch, Eric global product development global outsourcing product complexity make or buy Despite the growth in the practice of global product development, little work has been done to understand factors that influence mode choice in global product development. Our research fills this gap in the literature by empirically investigating variables that drive firms to either globally outsource, globally partner or develop modules themselves in a foreign country. We assume a product-centric view, and combine the transaction cost theory and the resource based view of the firm to explain mode choices based on the analysis of electromechanical products developed across Asia, Europe, the Middle East, and South America for (or by) American firms. Though we focus on complexity, we address product content specificity, product strategic importance and designer’s technological capability as well. We find significant relationships between the type of global product development and the product characteristics. However, the significance of the relationship between complexity and the mode varies by region when we divide the world into emerging countries and mature countries. While the relationship is significant in the emerging countries, it is not significant in mature countries. These findings have implications for decision making in systematically assigning modes of development to different products being developed globally. 2014-01-21T17:45:51Z 2014-01-21T17:45:51Z 2009-05-01 Presentation Technical Report 011-0217 http://hdl.handle.net/1721.1/84106 Attribution-NonCommercial-ShareAlike 3.0 United States http://creativecommons.org/licenses/by-nc-sa/3.0/us/ application/pdf
spellingShingle global product development
global outsourcing
product complexity
make or buy
Makumbe, Pedzi
Seering, Warren
Rebentisch, Eric
Product Complexity and Mode Choice in Global Product Development
title Product Complexity and Mode Choice in Global Product Development
title_full Product Complexity and Mode Choice in Global Product Development
title_fullStr Product Complexity and Mode Choice in Global Product Development
title_full_unstemmed Product Complexity and Mode Choice in Global Product Development
title_short Product Complexity and Mode Choice in Global Product Development
title_sort product complexity and mode choice in global product development
topic global product development
global outsourcing
product complexity
make or buy
url http://hdl.handle.net/1721.1/84106
work_keys_str_mv AT makumbepedzi productcomplexityandmodechoiceinglobalproductdevelopment
AT seeringwarren productcomplexityandmodechoiceinglobalproductdevelopment
AT rebentischeric productcomplexityandmodechoiceinglobalproductdevelopment