New product development in multi-location R&D organization: a concurrent engineering approach

Abstract

Relocating organization functional units geographically to an economically advantage location is one way for multi-national companies to improve competitive advantage. Change of company operation environment from co-location to multi-locations influences way of new product development management. This research reviewed new product development process in a multi-located research and development organization and examine elements for an efficiency new product development process. The research applied concurrent engineering approach to form a concept of concurrent new product development engineering. Seven concurrent engineering main constructs and 49 concurrent engineering critical attributes were identified. Using 98 survey data from a multi-location research and development organization, the research suggested there was no significant difference in new product development process of co-location and multi-location research and development organization. The research also revealed that efficiency concurrent new product development engineering process in multi-located research and development organizations were driven by “application of concurrent engineering tools”, followed by “top-down concurrent engineering approach” and “continuous improvement”. However, concurrent engineering “team” related attributes, which suggested by other researchers as main driver for efficiency new product development in co-located research and development organization was found less important in multi-located research and development environment.