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Papers

Beyond Cost: Product Complexity and the Global Product Development Location Advantage

Beyond Cost: Product Complexity and the Global Product Development Location Advantage

Year: 2009

Section: Design Organization and Management

Editor: Norell Bergendahl, M.; Grimheden, M.; Leifer, L.; Skogstad, P.; Lindemann, U.

Author: Makumbe, Pedzi; Seering, Warren; Rebentisch, Eric

Section: Design Organization and Management

Pages: 25-36

Abstract

Discussions of location advantages in global product development are largely based on self-reported surveys, and often agnostic to product characteristics. We build on this previous work by investigating location advantages and the influence of product complexity using negative binomial models. We find that the likelihood of developing products in a country increases as its market size, number of engineering graduates and national capability increases. However, it neither varies with labor cost nor market growth rate. We also find that complex products are more likely to be developed in countries with high national capability, and national capability is directly related to firm capability. These findings have implications for decision making in global product development.

Keywords: global product development, location advantage, complexity, capability, engineering workforce

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ds conferenceICED09: 17th International Conference on Engineering Design

The Design Society and the Stanford Center for Design Research cordially invite you to participate in the International Conference on Engineering Design, ICED'09. The venue will be Stanford University’s verdant campus in the heart of Silicon Valley, a short 35 miles south of San Francisco, California. Research papers and case studies are solicited on any topic related to design thinking, theory, and practice, with a premium placed on evidence-based research. Topics and Themes include: *...

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SIG Workshop - March 2013 - 1