Product architecture, organizational capabilities and IT integration for competitive advantage

YoungWon Park, Takahiro Fujimoto and Paul Hong

International Journal of Information Management, 2012, vol. 32, issue 5, 479-488

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.

Keywords: Organizational capabilities; Product architecture; CAD Usage; Information integration; IT system effectiveness; Japanese and Korean Electronic Manufacturers (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ininma:v:32:y:2012:i:5:p:479-488

DOI: 10.1016/j.ijinfomgt.2011.12.002

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