The effect of supply chain integration, modular production, and cultural distance on new product development: A dynamic capabilities approach |
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| Authors: | Ronaldo C Parente Daniel W Baack Eugene D Hahn |
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| Institution: | aFlorida International University & FGV–Ebape, United States;bMiller College of Business, Ball State University, Muncie, IN 47306, United States;cDepartment of Information and Decision Sciences, Perdue School of Business, Salisbury University, Salisbury, MD 21801, United States |
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| Abstract: | Little research has examined how international firms' operations strategies affect dynamic capability creation or how cultural distance affects operations management. This study addresses these gaps by bridging the work on dynamic capabilities, two operations management techniques (product modularization and supplier integration) and cultural distance. Using a sample of 111 Brazilian automobile suppliers, the study finds that new product development is marginally increased by product modularization but decreased by supplier integration. Cultural distance negatively moderated these relationships. This research extends the dynamic capabilities literature and indicates that operations management strategy is an important part of the dynamic capability formation process. |
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| Keywords: | Dynamic capability Supplier integration Modularization New product development Cultural distance |
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