Effects of IT-based supply chains on new product development activities and the performance of computer and communication electronics manufacturers

Abstract

Purpose Some studies have suggested that a supply chain augmented with information technology (IT) has a positive effect on performance in the marketplace. However, these studies have not explained how the IT-based supply chain achieves this superior performance. This study aims to reveal some of the mediating influences at play: the new product development (NPD) activities of product launch, product innovativeness and product development capability. Design/methodology/approach Taking the electronics manufacturer’s perspective, this study took a resource-based view to propose that NPD activities are affected by IT advancement and that IT-based supply chain architecture is a critical resource that ultimately affects new product performance. Thus study focuses on product launch, because this is the most expensive and risky stage of NPD; product innovativeness, because it plays a substantial role in achieving a competitive advantage; and product development capability, because it leads to superior product performance. A questionnaire was used to collect data from managers of projects, products and supply chains of computer and communication electronics manufacturers; 235 valid questionnaires were returned. These data were subsequently analyzed using a variety of statistical methods. Findings The results support that manufacturers’ IT resources enable them to enhance NPD activities effectively with their suppliers, and that NPD activities play a key role in moderating the relationship between IT-based supply chains and new product performance. Originality/value This paper provides an empirically tested model of how IT-based supply chain architecture can lead to superior new product performance through product lean launch, product innovativeness and product development capability.