Manufacturing competencies in high-tech NPD: on the impact of vertical integration and coordination

Daniel Olausson and Thomas Magnusson

International Journal of Manufacturing Technology and Management, 2011, vol. 22, issue 3, 278-300

Abstract: Starting from a distinction between internalisation and outsourcing of manufacturing, this paper studies how the degree of vertical integration affects R&D-manufacturing coordination. The case study findings illustrates that there are several quasi-stages of outsourcing that affect R&D-manufacturing coordination and manufacturing competence within R&D organisations. For effective R&D-manufacturing coordination to take place, it seems necessary that the R&D department possesses certain manufacturing competencies, both in terms of understanding the constraints of the manufacturing equipment/process and in terms of understanding the relation between production volumes and manufacturing cost. The implication is that managers need to carefully consider the effects of make-or-buy decisions on R&D-manufacturing coordination.

Keywords: manufacturing outsourcing; manufacturing internalisation; R&D-manufacturing coordination; vertical integration; new product development; manufacturing competencies; manufacturing competencies; high-tech NPD; high technology; R&D; research and development; production volumes; manufacturing cost; make-or-buy decisions. (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (1)

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