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Drawing on the integration of the knowledge-based theory and the resource orchestration theory, this study aims to develop a moderated mediation model on how design/manufacturing/administrative advanced manufacturing technology (AMT) influences product innovation performance. The authors hypothesized that the absorption capacity could mediate the AMT-innovation performance link and that design–manufacturing integration (DMI) could positively moderate the mediating effect of the absorption capacity.

To test the hypothesis, the authors conducted a mail survey of equipment manufacturing firms and obtained 302 valid responses for data analysis. Both hierarchical regression and bootstrapping analysis were conducted to empirically test the research model.

It is revealed that the absorption capacity partially mediated the effect of AMT on innovation and that DMI enhanced the mediated effect. Specifically, the mediating effect of the absorption capacity was more substantial and significant when DMI was high. However, the mediating effect of the absorption capacity was weaker and insignificant when DMI was low.

Overall, this study contributes to the AMT theory on innovation by identifying the absorption capacity and DMI as two key factors that elucidate why and under what conditions AMT affects innovation. Moreover, this study advises managers that besides developing AMT, firms should cultivate a strong DMI, which directs the absorption capacity toward converting the valuable knowledge in firms’ capital equipment into increased innovation performance.

The integration of design and manufacturing operations within the firm has been much discussed, particularly with respect to the development of a concurrent engineering approach to product development. Where product development activities occur between firms, the issue of design and manufacturing integration is less well developed. The notion of networked firms and partnership development requires consideration of how product development activities will be managed in the future. The outsourcing of design and manufacturing is becoming prevalent. Firms are involving their suppliers in both design and manufacturing. The need for cross‐functional inputs necessitates consideration of how coordination and integration can be sustained across this inter‐firm relationship. This article proposes a typology of inter‐firm mechanisms, which firms are using to integrate design and manufacturing operations in product development. It is based on a review of literature on design‐manufacturing integration at the inter‐firm level.

The purpose of this paper is to examine the effects of product modularity on four aspects of competitive performance: cost, quality, flexibility, and cycle time.

Constructs were created from a comprehensive survey of the automotive sector. Regression is used to ascertain the relationship between the constructs of product modularity and performance with three different integration strategies as mediators.

Modularity positively and directly influences each aspect of competitive performance for each integration strategy tested. Indirect effects were found for each integration strategy for cost and flexibility; and for manufacturing integration and cycle time.

A product modularity strategy enables simultaneous improvements on multiple dimensions of competitive performance.

This research is the first to empirically validate the effects of product modularity on competitive performance. Furthermore, it provides insight into the exact nature of product modularity's influence on competitive performance.

The purpose of this paper is to propose that the effectiveness of organizational design-manufacturing integration (ODMI) practices is contingent upon the degree of complexity of the manufacturing environment. The paper submits that the level of use of ODMI ought to match the level of complexity of the manufacturing environment. The paper puts forward the hypothesis that when a misfit occurs between ODMI and complexity (high use of ODMI practices in low complexity environments or low use of ODMI practices in high complexity environments) manufacturing operational performance declines.

The paper tests the hypothesis based on a survey database of 725 manufacturers from 21 countries. The measurement model was assessed with confirmatory factor analysis and the hypothesis was tested with linear regression.

A misfit between the level of ODMI use (job rotation and co-location) and manufacturing complexity (product and process complexity) has a negative effect on manufacturing operational performance dimensions of quality, delivery and flexibility. Post hoc analyses also suggest that firms that operate in different environments in what concerns the rate of change in process technologies suffer differentiated negative impacts of ODMI-complexity misfit.

Future studies could extend this research to other dimensions of design-manufacturing integration, such as technological practices.

Manufacturers with high levels of complexity should invest strongly in ODMI practices. However, manufacturers with low levels of complexity should invest in these practices with caution since the expected payoffs may not outweigh the effort.

The study assesses fit as a simultaneous set of contingency factors, applying profile-deviation analysis to ODMI and operational performance relationships. By focusing on plant-level manufacturing complexity, this study complements existing studies of product development complexity which tend to focus on project-level complexity.

This paper describes the major barriers across the design‐manufacturing interface and examines ways to overcome them to achieve a smooth production start‐up. An integration model reveals that formalization facilitates a smooth production start‐up. Independent of the degree of formalization during the early development stages, a formal approach is preferred when the new product is introduced into production. Another facilitating factor is the empathy from design towards manufacturing, which can be stimulated by managerial actions. Although the complexity and newness of product and technology hinder a smooth production start‐up, their effect seems to vanish by introducing formalization and by striving for a design team that has empathy towards manufacturing.

The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product development, and it provides a comparison to an earlier review of the management accounting (MA) literature (Wouters & Morales, 2014).

This structured literature search covers papers published in 23 journals in IOM in the period 1990–2014.

The search yielded a sample of 208 unique papers with 275 results (one paper could refer to multiple cost management methods). The top 3 methods are modular design, component commonality, and product platforms, with 115 results (42%) together. In the MA literature, these three methods accounted for 29%, but target costing was the most researched cost management method by far (26%). Simulation is the most frequently used research method in the IOM literature, whereas this was averagely used in the MA literature; qualitative studies were the most frequently used research method in the MA literature, whereas this was averagely used in the IOM literature. We found a lot of papers presenting practical approaches or decision models as a further development of a particular cost management method, which is a clear difference from the MA literature.

This review focused on the same cost management methods, and future research could also consider other cost management methods which are likely to be more important in the IOM literature compared to the MA literature. Future research could also investigate innovative cost management practices in more detail through longitudinal case studies.

This review of research on methods for cost management published outside the MA literature provides an overview for MA researchers. It highlights key differences between both literatures in their research of the same cost management methods.

An empirical study of 57 top‐tier suppliers to the North American automotive industry examined the direct and complementary effects of information system infrastructure (ISI) and process improvements on time‐based performance. The results show that the three dimensions of ISI – design‐manufacturing integration (DMI), manufacturing technology (MT), and information technology (IT) – directly influenced at least one dimension of time‐based performance. For example, DMI influenced manufacturing lead time, MT influenced new product development time, and IT influenced customer responsiveness. Process improvement also directly influenced supply‐chain time performance. Finally, ISI and process improvement had a positive and complementary effect on time‐based performance. Specifically, the IT factor along with process improvement variables (standardization and concurrent engineering) had a complementary and significant positive influence on time‐based performance. The findings strongly support the idea of joint deployment of information system infrastructure and process improvement to streamline cycle time performance in a supply chain.

The purpose of the research and development, validation and application of an advanced concurrent engineering research toolset, developed by the authors, at Rolls‐Royce Motor Cars Limited is to: reflect the customers’ requirements in a very competitive world market by focusing on product that is very high quality and reliable; shorten lead time; increase productivity; and improve integration between design, manufacturing and assembly, as well as the logistic system so that alternative supply chains could be evaluated before the product design is complete. This paper discusses some of the strategic issues, as well as gives examples of the modelling methods of the research toolset and some of its applications at Rolls‐Royce Motor Cars Limited.

Novel engineering designs are usually infeasible for manufacturing or fail to meet the required performance. The dissimilar functionalities and mindsets between design and manufacturing pose challenges, as well as opportunities for innovation projects. This paper aims to report the innovation process that prototyped a novel engineering design of a haptic device in an engineering research lab. The innovation process went through several design generations. Interaction between design and manufacturing drove the innovation toward both better and worse directions between generations.

Using the case research method, the steps of theoretical proposition development, case selection, data collection, data analysis and theory modification were followed. By interviewing the key persons, the characteristics, issues and recommendations for improvement of the innovation process were identified.

It was found that technical issues were not the hurdles in the innovation process. Instead, managing the inter-organizational mechanism proved critical to its eventual success. The educational gap between the design and manufacturing groups gave rise to communicational and perceptional distance, while the gap in terms of work experience between the two groups enlarged that distance.

The research results may be limited to cases with similar organizational and technological contexts.

Within an organization, the design and the manufacturing divisions are separated by a functional gap. The functional gap should be managed with multiple views, namely, technical, personal and organizational perspectives. The identified innovation process could help bridge such a gap and facilitate innovative engineering designs in research institutes.

The effectiveness of the innovation process was, thus, found to be determined by the positive or negative reinforcement of these two gaps between the design and manufacturing of the research institute.

Design-for-variety (DFV) practices aim to help manufacturers to manage and mitigate the negative impact of product variety on operational performance. Theory suggests that designing products according to DFV practices increases operational performance by allowing more efficient processing of products, capitalizing on commonalities and by supporting cross-functional and cross-boundary coordination through simplifying product designs. The purpose of this paper is to investigate the latter proposition, and especially the mediating role of internal, supplier and customer integration in the relationship between DFV and operational performance.

Data collected in 2014 among 702 manufacturers from 22 countries as part of the 6th International Manufacturing Strategy Survey are analyzed through mediated regression analysis using SPSS 25, AMOS and PROCESS v3.1 software.

DFV affects cost/speed, quality, delivery, flexibility and service performance positively. Except for the role of customer integration in the DFV-cost/speed relationship, internal, supplier and customer integration partially mediate the relationship between DFV and operational performance.

In addition to allowing a more efficient processing of products, the positive effect of DFV on performance is also explained by the fact that DFV practices support cross-functional and supply chain integration. These practices allow manufacturers to create a set of design rules easily understood and communicated within and across organizational boundaries.

While previous research tends to consider one DFV practice and limited sets of integration mechanisms and performance dimensions, this paper consolidates the most common DFV practices into one construct and encompasses the three forms of integration and six performance dimensions dominating the DFV literature.