The Impact of Product Modularity on NPD Time Performance: Moderating effect of Interfunctional Integration and supplier involvement

Product modularity is a strategic approach to product development that, according to several authors, can be used by manufacturers to speed up the new product development (NPD) process. Although the potential benefits of product modularity seem compelling, there is rarely even anecdotal evidence of these advantages. Moreover, some doubts can be expressed whether a clear relationship between NPD time performance and product modularity always exists. This paper analyzes the influence of product modularity on NPD time performance and the moderating effect on this relationship of interfunctional integration and supplier involvement in NPD. Data from a sample of 251 manufacturing firms settled in several countries around the world demonstrates that there is a positive relationship between product modularity and NPD time performance, and that interfunctional integration in NPD acts as moderator in this relationship. Differently, supplier involvement has only main effects on NPD time performance