Effects of product lifecycle management systems on new product development performance

To examine the effects of product life cycle management (PLM) systems on new product development (NPD) performance, the study developed a conceptual model linking firms' ability to diffuse and routinize PLM systems in NPD processes (called “PLM system capability”) with process management, coordination, and absorptive capabilities. The study assumed that the selected management capabilities mediate the effects of PLM system capability on NPD performance. The empirical results supported the theorized relationships, indicating that PLM system capability shapes firms' capabilities for NPD process management, partner coordination, and knowledge absorption, which subsequently affect NPD performance. Therefore, in order to improve NPD performance, managers must create conditions conducive for implementing PLM systems to enhance NPD-required management capabilities.