This article is the first in a two‐part discussion of the determinants and performance consequences of concurrent engineering (CE) team usage in organizations. The purpose of this first article is to develop a model of the organizational factors that influence the extent that CE teams are used when developing new products.
To test the model, 2,500 questionnaires were mailed to new product development (NPD) managers from the machinery, computer product, electrical equipment, and transportation equipment manufacturing industries, of which 189 usable questionnaires were returned, for a usable response rate of 7.5 percent. The data were analyzed using structural equation modeling with partial least squares.
Results indicate that an innovative organizational climate and complex NPD activities both influence the extent that organizations support functional integration on NPD teams, and this support, in turn, influences the extent that organizations use CE teams. Analyzing the qualitative data using content analysis indicates additional factors influencing CE team usage.
To researchers, this study examines in detail the extent of CE team usage, thus addressing a major gap in the research literature. This study also addresses the concerns of researchers by examining organizational contextual factors.
To NPD managers, this study highlights organizational precursor conditions needed in order for CE teams to be supported in the organizations, specifically complex NPD activities and an innovative organizational climate. By examining these two variables, NPD managers can gauge the likelihood that CE teams will be supported even before they are actually implemented.
