Exploring the Moderating Role of Business Strategy on the Relationship between the Strategic Role of Design and Design Performance

Abstract: This study mainly explores the fitness of business strategy and the strategic role of design on design performance. Prior business strategic management and design research has argued that design could not only play a crucial role in business strategic implementation, but also make strategy visible. However, little empirical research has been found to explore the relationship between business strategy and the strategic role of design. Drawing on both business strategy and design literature, this research proposed a conceptual framework integrating business strategy (business competitive strategy and product customization), the strategic role of design, and design performance. This study presents the results of a survey of 83 Taiwan’s information hardware firms. The first major finding was that the later a firm adopted timing of market entry, the more passive the role of design the firm exhibits in its strategic behavior. And, a high level of product customization, such as ODM/OEM, could lead the firms to adopt a more passive design strategic role. The second major finding revealed that the design strategic roles have stronger direct effects on design effectiveness, design efficiency (i.e., production, quality, time, and budget), and quality-value of design adaptability. Finally, the results showed that business strategy mediates the linkage between the strategic role of design and design performance under certain performance indicators. This research offers corporate executives and managers a somewhat rational approach to understanding and manipulating the relationship between business strategy and the strategic role of design in order to improve design performance in their firms