Knowledge sharing in integrated product development

Although product development is recognized as knowledge‐intensive work, we have limited understanding of its impact on product development performance. The mechanisms by which knowledge sharing contributes to strategic imperatives such as time to market and value to customers are also not well understood. Despite increased interest in knowledge sharing in cross‐functional teams, there have been few large‐scale empirical studies of its efficacy. This paper develops a model that explains how shared knowledge, defined in three types – shared knowledge of customers, suppliers, and internal capabilities – enhances process performance, as well as downstream strategic imperatives of time to market and value to customers. The model is tested using 205 responses on product development projects by US automotive engineers. The results show that shared knowledge of customers, suppliers, and internal capabilities positively affect product development performance, as well as indirectly affect downstream strategic imperatives via enhanced process performance.