COORDINATING NEW PRODUCT DEVELOPMENT AND MANUFACTURING - MECHANISMS AND THEIR PERFORMANCE EFFECTS

Appropriate coordination mechanisms between the new product development (NPD)and manufacturing functions are important for companies to implement and managethe balance between exploitative and explorative activities effectively. Althoughmuch research has been conducted in this area, there is no complete understanding,supported by empirical evidence, of how different coordination mechanisms affectdifferent areas of company performance. This paper tests the relationships betweenfour different coordination mechanisms and four areas of operational performance,and explores the moderating effects from market dynamics and market span on theserelationships.We find integration by process and organization to be the most effective coordinationmechanisms. Integration by standardization has a positive effect on qualityperformance, while workforce flexibility, delegation and knowledge affect flexibilityperformance negatively. Market dynamics moderates the relationship between processintegration and flexibility performance negatively. Furthermore, we also find marketdynamics to have a negative moderating effect on the relationships betweenintegration through standardization, and delivery and quality performance.