Xenophon Koufteros

Internal and External Integration for Product Development: The Contingency Effects of Uncertainty, Equivocality, and Platform Strategy

Effective product development requires firms to unify internal and external participants. As companies attempt to create this integrated environment, two important questions emerge. Does a high level of internal integration lead to a higher level of external integration? In the context of product development, this study considers whether internal integration in the form of concurrent engineering practices affects the level of external integration as manifested by customer integration, supplier product integration, and supplier process integration. External integration, in turn, may influence competitive capabilities, namely product innovation performance and quality performance. Second, using contingency theory, do certain contextual variables moderate the linkages between integration strategy (external and internal) and performance? Specifically, this study considers whether uncertainty, equivocality, and platform development strategy change the relationships among internal integration, external integration, and competitive capabilities. Data collected from 244 manufacturing firms across several industries were used to test these research questions. The results indicate that both internal and external integration positively influence product innovation and quality and ultimately, profitability. With respect to contingency effects, the results indicate that equivocality moderates the relationships between integration and performance.

The impact of organizational structure on time-based manufacturing and plant performance

The innovation and organizational theory literatures argue that implementing radical innovation can be facilitated or hindered by the organization’s structural design. As firms attempt to cope with an external environment that is changing from industrial to post-industrial, how do they implement change? This study develops a research framework that examines relationships among various structural dimensions (i.e. number of layers in the hierarchy, level of horizontal integration, locus of decision-making, nature of formalization, and level of communication), time-based manufacturing practices, and plant performance. Based on 224 responses from manufacturing firms, this study develops instruments to measure these organizational sub-dimensions using part of this sample (N = 104), and it tests the structural relationships with the remaining responses ( N = 120). Results indicate that the nature of formalization, the number of layers in the hierarchy, and the level of horizontal integration have significant, direct, and positive effects on the locus of decision-making and level of communication. Locus of decision-making and the level of communication, in turn, have significant, direct, and positive effects on time-based manufacturing practices. Finally, time-based manufacturing practices have a significant, direct, and positive impact on plant performance.

Concurrent engineering and its consequences

Abstract Technology and market changes introduce uncertainty and equivocality in the product development arena, and firms are considering various structural relationships to help them cope with these changes. Concurrent engineering (CE) is a mechanism that can reduce uncertainty and equivocality and improve an organization’s competitive capabilities. CE is typically manifested through concurrent work-flows, product development teams, and early involvement of constituents. It enables information to flow through the organization quickly and effectively thereby, reducing uncertainty. At the same time, it enables debate, clarification, and enactment which are essential elements in combating equivocality. CE practices are also purported to have significant effects on product innovation, quality, and premium price capabilities. This research carefully defines CE and creates a valid and reliable instrument to assess it. It reports on the development and testing of a model that relates CE to some of its most salient consequences. Half of the sample of 244 firms is used for exploratory purposes and half for confirmatory work and hypotheses testing. Results indicate that firms that experience a high technological and product change in their environment are using more CE practices. In addition, results suggest that CE practices have significant direct effects on product innovation. However, only the indirect effects of CE on quality and premium pricing are statistically significant. Firms with higher levels of product innovation have higher levels of quality. Firms with higher levels of product innovation do exhibit premium pricing capabilities but only if they affect quality capabilities. Firms that display elevated quality levels excel in their premium pricing capabilities.

Integrated product development practices and competitive capabilities: the effects of uncertainty, equivocality, and platform strategy

Abstract Product development occurs more frequently as product life cycles shrink and new product offerings expand. In this high-change and complex environment, firms face high levels of uncertainty and equivocality, and in response, they seek integrative structural mechanisms. In these organizations, product development is characterized by the use of heavyweight product development managers, concurrent engineering, and computer usage. These mechanisms give product development efforts the senior leadership to overcome resistance, the ability to integrate and coordinate activities, the access to relevant information, and the ability to process it effectively. This research describes a framework for product development practices, and it discusses relations among these variables as well as important performance variables (product innovation, quality, premium pricing, and profitability). Based on responses from 244 manufacturing firms, the study suggests that heavyweight product development managers drive the application of concurrent engineering and computer use. Computer use has a significant and positive impact on product innovation, and concurrent engineering has a positive effect on quality. Product innovation also seems to have an influence on quality. Both quality and product innovation have a significant and positive impact on premium pricing, which, in turn, influences profitability. The extent to which a firm uses a product platform strategy seems to be an important contextual variable that affects the nature of the relationships among product development practices and competitive capabilities. Firms operating in uncertain or equivocal environments appear to adopt higher levels of integrated product development practices than firms operating in low uncertainty or low equivocality environments.

The Impact of Organizational Culture on Time-Based Manufacturing and Performance

Firms are utilizing an array of manufacturing practices in their quest for survival and success in the marketplace. The implementation of those practices has not always resulted in success stories as the focus had been mostly on technical issues, with little concern for “soft issues.” For example, the enabling role of organizational culture has often been ignored. Using Scheins conceptualization of culture as underlying assumptions, espoused values, and artifacts, we examine a framework that relates culture and manufacturing practices to performance. The underlying assumption of customer orientation is posited to affect espoused values such as beliefs on investing in facilities and equipment to leverage intellectual work and to promote creativity, beliefs on working with others, beliefs on making decisions that are global, beliefs on management control, and beliefs on integrating with suppliers. The espoused values are hypothesized to affect visible attributes of culture (behaviors) such as time-based manufacturing practices, which firms are employing for competitive advantage. A sample of 224 firms is used for developing research instruments and testing the hypothesized relationships advanced. Results indicate that high levels of customer orientation lead to a set of managerial beliefs that are collaborative and integrative. In turn, certain espoused values support a high level of time-based manufacturing practice, which leads to high performance.

Examining the Competitive Capabilities of Manufacturing Firms

Manufacturers compete in a complex and uncertain environment with growing global competition, changing and emerging markets, and increasing levels of manufacturing technology. Order winning hinges on their ability to achieve a set of competitive capabilities that have an external, customer orientation and manifest the relative strength of the individual firm against its competitors. This study proposes a framework for research on competitive capabilities, reports on the development of a set of constructs for measuring those capabilities, and tests relations among them. The constructs measure flexible product innovation, quality, delivery dependability, competitive price, and premium price. The constructs are reliable across industries. Tests of a structural model suggest significant relations among the competitive capabilities and significant, positive, and direct-indirect relations between the competitive capabilities and profitability. Results are based on a sample of 244 firms across 4 industries.

Confirmatory Analysis of Computer Self-Efficacy

Computer user self-efficacy plays a key role in self-motivation and affects potential usage of information systems technology. Previous research on self-efficacy has focused on perceptions of capability regarding specific computer-related knowledge and skills. This study extends previous exploratory work on computer self-efficacy. Using a sample of 414 college students, a proposed 4-factor self-efficacy model is tested. Results demonstrate support for the hypothesized model.

Intention to Commit Online Music Piracy and Its Antecedents: An Empirical Investigation

Online piracy of copyrighted digital music has become rampant as Internet bandwidth and digital compression technologies have advanced. The music industry has suffered significant financial losses and has responded with lawsuits, although online music piracy remains prevalent. This article developed a research model to study the determinants of individual intentions to commit online music piracy. The model was derived from the theories of planned behavior and deterrence. A survey questionnaire of 216 respondents was used to test the model. Consistent with the theory of planned behavior, the results showed that attitude toward online music piracy, subjective norms, and perceived behavioral control are significant antecedent factors of intention to commit online music piracy. Concerning deterrence theory, the results suggest that the effect of perceived punishment severity on attitude was highly significant for females, and the effect of perceived certainty of punishment on attitude was not significant for males or females.

Expanding the quality paradigm for contemporary realignment: an ethics perspective

Despite considerable change in the context and environment in which business transactions are conducted today, prevailing views on quality have remained relatively static. This paper provides a new perspective on quality and serves as a call for the expansion of the quality paradigm in business research, teaching, and practice so as to better align it with the environment of today. It expands the conceptualisation of quality in the context of provider-customer transactions along supply chains and presents unethical conduct as a fundamentally critical aspect of quality and customer satisfaction. Specifically, it examines the effects of unethical conduct on the quality of customer experience, creation of value, and competitiveness. It develops a framework for assessing the detrimental impact of deceitful business conduct by providers and accordingly formulates summative propositions. New and useful managerial insights are offered on how the challenges posed by unethical conduct can be effectively met. A scale for measuring deceitful practices is developed with the suggestion that it be used in association with a deceit index to determine the quality of a customer’s total experience. Future research directions are also identified.