In-House Globalization: The Role of Globally Distributed Design and Product Architecture on Product Development Performance

25 Pages Posted: 19 Aug 2011

See all articles by Bilal Gokpinar

Bilal Gokpinar

University College London – Department of Managment Science and Innovation

Wallace J. Hopp

University of Michigan, Stephen M. Ross School of Business

Seyed Iravani

Northwestern University - Department of Industrial Engineering and Management Sciences

Date Written: June 1, 2011

Abstract

Changes in the global economy and technological advances are stimulating an increasing geographic distribution of new product design and development efforts. For large organizations that design and develop complex products, this geographic distribution has added a new layer of complexity to product development operations. In this empirical study of a large auto manufacturer, we examine the operational performance implications of splitting the design of vehicle subsystems across multiple geographic locations. Our results indicate that global distribution diminishes the chance of completing tasks on time and degrades subsystem design quality. Finally, by examining the interplay between subsystem centrality and global distribution, we found that higher centrality in the product architecture amplifies the impact of global distribution on subsystem error rates.

Keywords: distributed work, global design, product architecture, new product development

JEL Classification: O32

Suggested Citation

Gokpinar, Bilal and Hopp, Wallace J. and Iravani, Seyed, In-House Globalization: The Role of Globally Distributed Design and Product Architecture on Product Development Performance (June 1, 2011). Ross School of Business Paper No. 1163, Available at SSRN: https://ssrn.com/abstract=1911867 or http://dx.doi.org/10.2139/ssrn.1911867

Bilal Gokpinar (Contact Author)

University College London – Department of Managment Science and Innovation ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Wallace J. Hopp

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

Seyed Iravani

Northwestern University - Department of Industrial Engineering and Management Sciences ( email )

Evanston, IL 60208-3119
United States

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