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Supply chain product co‐development, product modularity and product performance: Empirical evidence from Hong Kong manufacturers

Antonio K.W. Lau (The Department of Manufacturing Engineering and Engineering Management, City University of Hong Kong, Kowloon, Hong Kong, China)
Richard C.M. Yam (The Department of Manufacturing Engineering and Engineering Management, City University of Hong Kong, Kowloon, Hong Kong, China)
Esther P.Y. Tang (The Department of Management and Marketing, The Hong Kong Polytechnic University, Kowloon, Hong Kong, China)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 28 August 2007

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Abstract

Purpose

This paper aims to examine how an organization can achieve higher performance through integrating supply chain product co‐development (SCPC) and modular product design.

Design/methodology/approach

Based on a comprehensive review of literature on product development, supply chain management and system theory, the four proposed hypotheses concerning the relationships among SCPC, product modularity (PM), manufacturing capabilities and product performance (PP) were tested empirically through a sample of 251 Hong Kong manufacturers.

Findings

SCPC is found to have a direct and positive relationship with PM and PP. PM improves flexibility and customer service and in turn PP.

Research limitations/implications

Given the cross‐sectional nature of the study and the focus on manufacturing industry, future research should replicate this study in different industries with more longitudinal studies.

Practical implications

The study provides solid evidence that managers should involve their suppliers, internal functional units and customers early in their design stages, especially in the decisions relating to PM. The study has also demonstrated that product co‐development affects PP in both direct and indirect ways.

Originality/value

The present study empirically verifies the relationships between supply chain integration and modular product design by means of SCPC and PM. Similar empirical research is absent from the literature on relevant disciplines.

Keywords

Citation

Lau, A.K.W., Yam, R.C.M. and Tang, E.P.Y. (2007), "Supply chain product co‐development, product modularity and product performance: Empirical evidence from Hong Kong manufacturers", Industrial Management & Data Systems, Vol. 107 No. 7, pp. 1036-1065. https://doi.org/10.1108/02635570710816739

Publisher

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Emerald Group Publishing Limited

Copyright © 2007, Emerald Group Publishing Limited

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