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

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  • Daniel Olausson
  • Thomas Magnusson

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.

Suggested Citation

  • Daniel Olausson & Thomas Magnusson, 2011. "Manufacturing competencies in high-tech NPD: on the impact of vertical integration and coordination," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 22(3), pages 278-300.
  • Handle: RePEc:ids:ijmtma:v:22:y:2011:i:3:p:278-300
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    Cited by:

    1. Mohammad H. Eslami & Nicolette Lakemond, 2016. "Internal Integration In Complex Collaborative Product Development Projects," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-28, January.

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