Product development practices, manufacturing practices, and performance: A mediational perspective

Performance across several dimensions such as delivery, quality, and product innovation is critical for the well being of organizations. While empirical research has examined the impact of various product development strategies and routines on performance variables, the understanding of the relationships is still incomplete. In essence, the effects on performance are typically viewed as direct and straightforward. We argue instead that the effects of product development strategies on performance are mediated by manufacturing practices. Relying primarily on the dynamic capabilities perspective, this research links some of the most salient product development approaches (i.e.; platform products and concurrent engineering) and manufacturing practices (i.e. cellular manufacturing, setup improvement practices) and examines their effects on performance. The findings are based on a sample of 214 US manufacturers. The results suggest that manufacturing practices do play an indispensable role in realizing the value of product development practices.