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The study aims to explore the conditional relationships between product modularization and new product development (NPD) efficiency. It is postulated that R&D outsourcing plays an important mediating role. Furthermore, the level of competency trust is considered an essential factor in moderating the indirect effect of product modularization on NPD efficiency via R&D outsourcing practices.

Drawing on transaction cost economics theory, this study suggests a moderated mediation model that addresses how product modularization effectively promotes NPD efficiency via outsourcing practices. The hierarchical regression and PROCESS macro model were conducted to test the hypotheses based on survey data from 273 manufacturing firms in China.

Product modularization enhances NPD efficiency directly and indirectly through the external collaboration of R&D outsourcing. Furthermore, the role of product modularization in R&D outsourcing practices is more effective when the competency trust in R&D outsourcing partners is high.

By showing the critical role of external collaboration, this study provides valuable insights into how manufacturing firms utilize product modularization to achieve desired NPD performance more effectively.

This study aims to suggest a moderated mediation model addressing how internal integration interacts with information technology (IT) link with external customers to meet customer needs more efficiently and effectively.

This study tests the proposed hypotheses by using 268 data collected from manufacturing firms worldwide.

The results of this study reveal that internal integration plays a very important role in promoting customer satisfaction directly and indirectly by enhancing the ability to meet customers’ flexibility needs. In addition, the results show that IT link with customers strengthens this indirect influencing relationship.

By combining IT connectedness with external customers with internal capability, this study provides valuable insights into how manufacturing firms apply internal integration more effectively to enhance customer satisfaction.