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