Product architecture,organizational capabilities and IT integration for competitive advantage |
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| Authors: | YoungWon Park Takahiro Fujimoto Paul Hong |
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| Institution: | 1. Waseda Institute for Advanced Study, Waseda University, Japan, 1-6-1 Nishi Waseda, Shinjuku-ku, Tokyo 169-8050, Japan;2. Graduate School of Economics, Faculty of Economics, The University of Tokyo, Japan, Kojima Hall 5F, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-0033, Japan;3. Information Operations and Technology Management, College of Business and Innovation, University of Toledo, Toledo, OH 43606, USA |
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| 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. |
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| Keywords: | Organizational capabilities Product architecture CAD Usage Information integration IT system effectiveness Japanese and Korean Electronic Manufacturers |
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