The impact of organizational clockspeed and supply chain integration on innovations in the automotive industry

Abstract:

In the clockspeed perspective on business strategy, organizations’ responses to ever-increasing levels of industry change and flux determine their survival. In this perspective, effectively functioning supply chains and faster organizational clockspeed are hallmarks of firms that are better positioned to thrive in highly dynamic environments, while new product introductions are important contributors to firm viability. The proposed framework relates these three concepts and empirically examines the impact of supply chain integration and organizational clockspeed on the pace of new product introductions. The findings indicate that two distinct strategies emerge among companies with higher levels of new product development. One strategy focuses heavily on the supply chain; the other focuses heavily on increased clockspeed. The evidence suggests that it may be difficult to focus on both and maintain higher levels of new product development.