Global product development projects: measuring performance and monitoring the risks

Abstract

This article investigates the development and application of key performance indicators for global product development. Two in-depth, longitudinal case studies with multinational Danish manufacturing companies were conducted, and highlight how key performance indicators, typically used for collocated, cross-functional product development, do not provide the predictive insight required to avoid the additional risks encountered in the global product development environment. Grounded in the case study results and building on established methodologies in performance measurement literature, a framework was developed and validated in two additional Danish companies to support project managers to develop: preventive indicators, which support the avoidance of identified risks, and outcome indicators, which support the measurement towards the attainment of project objectives. The study is unique as it is one of the very few longitudinal studies of engineering design activities in a global context, providing the in-depth contextual understanding towards key risks and their influence on performance; an important step to support researchers and practitioners with the development of preventive measures.     

Extension of internationalisation models: drivers and processes for the globalisation of product development – a comparison of Danish and Chinese engineering firms

This paper develops an extension to established production- and supply chain management focused internationalisation models. It applies explorative case studies in Danish and Chinese engineering firms to discover how the globalisation process of product development differs from Danish and Chinese perspectives. The paper uses internationalisation and global product development theory to explain similarities and differences in the approaches. Grounded in case study results, a new model for internationalisation is proposed. The new model expands the internationalisation process model to include steps of product development and collaborative distributed development beyond sourcing, sales and production elements. The paper then provides propositions for how to further develop the suggested model, and how western companies can learn from the Chinese approaches, and globalise their product development activities from the front end of the value chain rather than from the back-end.