Content area
Purpose
The study aims to explore the conditional relationships between product modularization and new product development (NPD) efficiency. It is postulated that R&D outsourcing plays an important mediating role. Furthermore, the level of competency trust is considered an essential factor in moderating the indirect effect of product modularization on NPD efficiency via R&D outsourcing practices.
Design/methodology/approach
Drawing on transaction cost economics theory, this study suggests a moderated mediation model that addresses how product modularization effectively promotes NPD efficiency via outsourcing practices. The hierarchical regression and PROCESS macro model were conducted to test the hypotheses based on survey data from 273 manufacturing firms in China.
Findings
Product modularization enhances NPD efficiency directly and indirectly through the external collaboration of R&D outsourcing. Furthermore, the role of product modularization in R&D outsourcing practices is more effective when the competency trust in R&D outsourcing partners is high.
Originality/value
By showing the critical role of external collaboration, this study provides valuable insights into how manufacturing firms utilize product modularization to achieve desired NPD performance more effectively.
Details
; Park, Kihyun 3
; Lee, Gukseong 4
1 School of Innovation and Entrepreneurship, Zhejiang University of Science and Technology, Hangzhou, China
2 School of Management, Shandong University, Jinan, China
3 Department of Management, Rockwell School of Business, Robert Morris University, Moon Township, Pennsylvania, USA
4 College of Business Administration, Kookmin University, Seongbok-gu, South Korea