Digital Transformation in the New Product Development Process: The Role of It-Enabled PLM Systems for Relational, Structural, and NPD Performance

Abstract

Companies increasingly use digital product lifecycle management (PLM) systems with information technology (IT)-based workflow and product data management functions to assist new product development (NPD). However, empirical evidence on whether and how such digital transformation in PLM contributes to NPD performance is scarce. The objective of this paper is to fill this void. We use Assemblage Theory to develop a theoretical model that links the digital transformation in PLM to performance and focus on the extent to which IT-based data gathering and exchange occur in NPD. We carry out a quantitative survey among 216 key informants of manufacturing companies and use structural equation modelling on the resultant data to provide empirical evidence for our hypothesis. We find that the level of digital transformation in PLM positively influences structural and relational performance and, in effect, also enhances NPD performance. Our findings also show that organisational complexity positively moderates these relationships. For managers, our findings demonstrate the value of digital transformation for managing the NPD process, notably in larger, more complex organisations.

Knowledge Management in the Fourth Industrial Revolution: Mapping the Literature and Scoping Future Avenues

“…The second stream of the DT-related literature reveals how this impacts new product development (NPD). In particular, Schweitzer, et al [87] discovered that companies with a strong NPD-orientation may thrive during a DT. Indeed, NPD processes that rely on IT-based workflows and product data management practices are most successful when integrated with the overall company's strategy.…”

Development of the digital economy in the context of sustainable competitive advantage

“…It should be noted that M.F. Schweitzer et al studied the digital revolution in the process of creating and developing a new good (product or service), as well as the role of information systems for improving labor productivity [3]. At the same time, in our opinion, quite significant issues of the stages of development of the digital economy, processing and transmission of information data remained not disclosed.…”

Digital Transformation Of Russian Economy In Contemporary Conditions

“…It is important to take into account the impact of digital dividend on society as a whole and the business activities in the context of the digital transformation of today's economy. Some researchers like Schweitzer et al (2019) studied digital transformation in new product design and development and the role of information systems in increasing labor productivity in their work (Galindo-Martin et al, 2019). Yet, some of the important problems associated with government policies in the context of digital economy transformation were left unrevealed.…”