Product architecture, organizational capabilities and IT integration for competitive advantage

Youngwon Park, Takahiro Fujimoto, Paul Hong

Research output: Contribution to journalArticlepeer-review

36 Citations (Scopus)

Abstract

Increasingly, firms recognize the strategic implications of front-end product design for improving total cost effectiveness. Computer-aided design (CAD) is becoming firms' competitive weapon beyond its traditional function as a product design tool. Yet, it is unclear how the full potential of IT system, particularly the usage patterns of 3D CAD system, may be realized through organizational capabilities. This paper presents a model of IT system configurations and CAD usage patterns. Next, a typology of IT system configurations is presented based on (1) the degree of CAD integration between assembly makers and suppliers and (2) the structure of product design information (i.e.; product architecture). The product architecture of four electronic firms illustrates that information integration through organizational capabilities is more important than IT investment itself. The findings suggest that a Korean firm accomplishes a greater level of IT integration compared to the other two Japanese firms and thus attain better market performance. This study offers valuable insight on effective IT integration strategy for competitive advantage in the global market.

Original languageEnglish
Pages (from-to)479-488
Number of pages10
JournalInternational Journal of Information Management
Volume32
Issue number5
DOIs
Publication statusPublished - 2012 Oct
Externally publishedYes

Keywords

  • CAD Usage
  • Information integration
  • IT system effectiveness
  • Japanese and Korean Electronic Manufacturers
  • Organizational capabilities
  • Product architecture

ASJC Scopus subject areas

  • Information Systems
  • Computer Networks and Communications
  • Library and Information Sciences

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