The effects of product modularity, interfunctional integration and supplier involvement on NPD time performance

Product modularity is considered a crucial driver to reduce NPD time. However, though most studies agree that it can positively influence NPD time performance, quantitative studies on the effect of product modularity on NPD time are really scant. Moreover literature suggests that product modularity is usually adopted together with other NPD practices, especially the interfunctional integration and supplier involvement in NPD process. This paper analyzes the impact of product modularity, interfunctional integration and supplier involvement on NPD time performance, and the moderating effects on product modularity-time performance relationship of interfunctional integration and supplier involvement. Data from a sample of 266 manufacturing firms settled in several countries around the world demonstrates that product modularity and supplier involvement have a direct positive effect on NPD time, and that interfunctional integration positively moderates the product modularity-time performance relationship. This implies that managers can lever product modularity and supplier involvement to cut NPD time; and that should launch an appropriate mix of interventions on interfunctional integration and product modularity to maximize NPD time performance, rather than investing and focusing on product modularity only.