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A Project-Based Perspective on Complex Product Development

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Abstract

In this chapter we review the literature on complex product development focusing on a project-based perspective. We start from showing the specific nature of complex product development processes, and acknowledge the need for relying on external sources of innovation and evaluating its organizational implications. We then focus on the challenges of leveraging such dispersed knowledge, pointing to the specific problems brought by the crucial role of “learning by doing” in complex product innovation processes. The chapter highlights the necessity of shifting the focus of attention from firms’ knowledge boundaries to the project knowledge boundaries, so as to gain a more fine-grained analysis of some important phenomena that happen “around” the formal boundary of the firm and cope with knowledge development problems. In the conclusion we hint at the necessity to investigate in more depth how using development projects as unit of analysis can contribute to offering new ways of performing organizational ambidexterity.

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Notes

  1. 1.

    For the arguments in this section, see also Zirpoli and Becker (2011a, b) in which we draw on our empirical work carried out in the automotive industry.

  2. 2.

    Original equipment manufacturers. In the automotive industry, OEM companies include, for example, General Motors, Ford, and Toyota. In some industries, such as electronics, OEMs build products or components used in products sold by another company (often called a value-added reseller, or VAR), in others they are identified as ODM (Original Design Manufacturer). Here, we refer to the OEM as the leader in its value chain, i.e., as the final system integrator.

  3. 3.

    Empirical evidences show that firms that pushed the balance of architectural versus component-specific knowledge to the extreme limit by trying to focus on architectural knowledge and outsourcing as much component-specific knowledge as possible, are reported to have problems (Fine and Whitney 1996; Lincoln et al. 1998). In turn, this implies serious problems in coordinating and governing suppliers, leading to an increasing risk of dependency on suppliers (Fine 1998).

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Becker, M., Errichiello, L., Zirpoli, F. (2014). A Project-Based Perspective on Complex Product Development. In: Bonesso, S., Comacchio, A., Pizzi, C. (eds) Project-Based Knowledge in Organizing Open Innovation. Springer, London. https://doi.org/10.1007/978-1-4471-6509-5_3

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