Concurrent engineering teams II: performance consequences of usage

Purpose – This is the second paper in a two‐part discussion of the determinants and performance consequences of concurrent engineering (CE) team usage. In this paper, a model is developed outlining the relationship between the extent of CE team usage and three measures of performance, specifically NPD financial performance, NPD development performance, and communication quality. Design/methodology/approach – To test the model, 2,500 questionnaires were mailed to NPD managers from the machinery, computer product, electrical equipment, and transportation equipment manufacturing industries. Of the 2,500 questionnaires mailed, 189 usable questionnaires were retuned for a usable response rate of 7.5 percent. Findings – Results of performing partial least squares analysis indicate that the frequency of use of CE teams and functional involvement on CE teams influences communication quality, which in turn, influences both NPD financial and development performance. Research limitations/implications – To researchers of NPD, the major implication of this study is that it highlights possible reasons (e.g. not considering the extent of usage or not including functional involvement or communication quality in their models) why they are obtaining such inconsistent results when examining the relationship between NPD practices and performance. The major limitation of this study is that only CE teams have been selected for investigation or risk the problems associated with developing a very long questionnaire. Originality/value – To practicing NPD managers, the value of this research is that it highlights that CE teams which do little to improve communication quality will not lead to improvements in NPD performance.