THE ROLE OF INTERORGANIZATIONAL COORDINATION CAPABILITIES IN NEW PRODUCT DEVELOPMENT 1

Scope. The purpose of this study is to examine how information flows in collaborative new product development (NPD) across enterprises can be effectively managed. Following the information processing view of the product development process, interorganizational collaboration implies that tasks and technological capabilities are aligned for maximum effectiveness. This study proposes the concept of interorganizational coordination capability, which is proposed as a critical antecedent of NPD performance, manifested as (i) faster time to market, (ii) improved product quality and innovation, (iii) efficiency, and (iv) collaborative advantage. Whereas there is a long-standing trade-off between innovation and efficiency in NPD, this dissertation study aims to show how the co-evolution of IT coordination capabilities and task interdependencies can concurrently achieve both innovation and efficiency. This study aims to theoretically develop and empirically validate the complex interrelationship between interorganizational coordination capability and task interdependence, in addition to goal congruence, organizational interdependence, interorganizational trust, relationship specific investments, and complementary capabilities. Research Method. The relevant context is the joint product development process in complex-product industries, such as the automotive industry. This study differs from prior research that focused on coordination structures at the firm level. I argue that the work unit level is also critical, because the work unit in the product development process is where most tasks occur. I will use a combination of case study and survey methodology. First, I will conduct several interviews with NPD and engineering managers, which aim to enrich the research model, provide qualitative support, and assist the development of measurement items. These interviews aim to uncover best business practices and explore how coordination capabilities are built. Second, an empirical study using a large-scale survey methodology will test the resulting hypotheses and provide quantitative support. Contribution. This research has implications for the coordination of complex information flows in NPD, the utilization of coordination capabilities in interfirm NPD teams, and NPD performance. First, the study intends to shed light on how IT resources can transform into viable strategic options (coordination capabilities) that influence NPD performance and collaborative advantage. Second, it will prescribe how enterprises can effectively utilize coordination capabilities to co-evolve with the increasing information flows of NPD. Thirdd, it will lay down how NPD groups can align their coordination capabilities with their information processing needs to concurrently achieve innovation and efficiency. From a research perspective, this study contributes to the theoretical development and operationalization of interorganizational coordination capability, a proposed key component in managing NPD processes. Finally, from a practical standpoint, the study will propose a set of critical antecedent factors that influence coordination, interdependence, and alignment and help identify ideal coordination configurations that positively influence NPD performance.