Integration of product development capability and supply chain capability: The driver for high performance adaptation

The research of the past decade indicates that the fit between product characteristics and supply chain characteristics has still not been specified. In line with this research issue, this paper proposes one key issue: whether companies can dynamically adjust the two effectively to address changing competitive circumstances along the product life cycle, rather than having just one specific life-long fit between the two sets of characteristics. Building on previous research addressing the concept of absolute supply chain orientation strategy, this study proposes that companies become high performers over time by strengthening and coordinating product development and supply chain management capabilities and adjusting their fit over time. This will be the focus of this research. To date, the mentioned approach which views the fit issue from the point of coordination between the two capabilities has not been considered in past research. This study has used diverse statistical methods on a sample of 303 plants from an international database obtained from a survey from fourteen countries, completed in 2016. Major implications of this study are to confirm that: First, the two above-mentioned capabilities counterbalance each other in order to maintain a positive relationship with each other. Second: a) companies are more competitive over time when they are high performers in both of these capabilities; b) high performers are able to leverage methods such as modularity and mass customization in their pursuit of fits; c) many average companies are advised to put relatively greater priority on strengthening supply chain capability than on product development capability as they endeavor to become high performers.