Organization and product design pairings: A review of product innovation capabilities, conceptualization, and future directions

• Author: Oluwasoye P. Mafimisebi,Demola Obembe,Oluwakayode Aluko
• Date: 01 January 2020
• Published date: 01 January 2020
• DOI: http://doi.org/10.1002/jsc.2306

RESEARCH ARTICLE

Organization and product design pairings: A review of product

innovation capabilities, conceptualization, and future directions

Oluwasoye P. Mafimisebi | Demola Obembe | Oluwakayode Aluko

Department of Management and

Entrepreneurship, Leicester Castle Business

School, De Montfort University, Leicester,

United Kingdom

Correspondence

Demola Obembe, Department of Management

and Entrepreneurship, Leicester Castle

Business School, De Montfort University, The

Gateway, Leicester LE1 9BH, UK

Email: dobembe@dmu.ac.uk

Abstract

Product innovation capabilities significantly shape and determine the success of

architectural pairings between organization design and product designs, and act as a

source of sustainable competitive advantage. This article draws on the resource-

based view of firms and market orientation theory to present a complementary view

of the influence of product innovation capabilities on organization and product

design pairings. Three complementary factors; market orientation, organizational

form, and managerial strategic decisions, act as essential determinants for emergence

of architectural pairings, by accounting for pairing selection processes, customer ben-

efits, cost reduction and product development, and consequently superior organiza-

tional performance. We identify scope for future research to evaluate measures and

validity of product innovation capability dimensions, and the extent of influence of

the identified factors on architectural pairings.

1|INTRODUCTION

Organizations face particularly increased difficulties in gaining

sustained competitive advantage when adopting a mirroring approach

to organization and product design pairings (Brusoni, Prencipe, & Pav-

itt, 2001; Cabigiosu & Camuffo, 2012; Campagnolo & Camuffo, 2010;

Colfer & Baldwin, 2016; Furlan, Cabigiosu, & Camuffo, 2014;

MacCormack, Baldwin, & Rusnak, 2012; Querbes & Frenken, 2018).

While research suggests that simultaneous mirroring and misting

occur dependent on contextual product characteristics (Burton &

Galvin, 2018) and partial mirroring yields the most effective perfor-

mance outcomes (Park & Ro, 2013; Pil & Cohen, 2006), we know little

about how PICs influence architectural pairings between organization

and product designs.

The similarity between product architecture and organization

design has become known as the “mirroring hypothesis”(Querbes &

Frenken, 2018). Product architecture is generally described as the

scheme by which product functions are allocated to its constituent

components (Ulrich, 1995). Studies further emphasize the vital role of

architecture in the successful development of a firm's new products,

the competitiveness of its product portfolio and the evolution of its

organizational capabilities (e.g., Baldwin & Clark, 2000; Sanchez &

Mahoney, 1996; Schilling, 2000; Ulrich, 1995). More so, extant litera-

ture has studied the link between product architecture and organiza-

tion characteristics which develop the product (Cataldo, Wagstrom,

Herbsleb, & Carley, 2006; Sosa, Eppinger, & Rowles, 2004).

The centrality of the mirroring hypothesis to “products design

organizations”perspective is further challenged by increased turbu-

lence in the business world (Burton & Galvin, 2018; Colfer & Baldwin,

2016; Mafimisebi & Nkwunonwo, 2015). For instance, perpetual mar-

ket shifts raise the question of how organizations can determine

which architectural pairings will succeed. Moreover, managers may

find it difficult to establish appropriate strategic goals for firms where

they cannot distinguish which activities their firm should commit to

and which to avoid (Pil & Cohen, 2006). We propose that product

innovation capability is an essential factor in distinguishing which

organization and product design pairings will succeed, and influence

such architectural pairings. Further, firms engaged in product innova-

tion can simultaneously or separately commercialize new products,

elaborate new architectural pairings, and sustain advantage (cf.,

Atuahene-Gima & Ko, 2001; Cohen & Klepper, 1996; Fritsch & Mes-

chede, 2001; Park & Ro, 2013).

Here, product innovation is defined as commercialization of new

goods or services to meet external user need (Damanpour, 2010).

JEL classification codes: L1, L2.

DOI: 10.1002/jsc.2306

Strategic Change. 2020;29:13–24. wileyonlinelibrary.com/journal/jsc © 2020 John Wiley & Sons, Ltd. 13