Beyond Cost: Product Complexity and the Global Product Development Location Advantage
Name
CP_090824_Makumbe_ICED09.pdf
Size
148.13 KB
Format
Adobe PDF
Checksum (MD5)
5959a5df68b5b498824ae52db5d73855
Author(s)
Makumbe, Pedzi
Seering, Warren
Rebentisch, Eric
Date Issued
August 24, 2009
Abstract
Discussions of location advantages in global product development are largely based on self-reported
surveys, and often agnostic to product characteristics. We build on this previous work by investigating location advantages and the influence of product complexity using negative binomial models. We find that the likelihood of developing products in a country increases as its market size, number of engineering graduates and national capability increases. However, it neither varies with labor cost nor market growth rate. We also find that complex products are more likely to be developed in countries
with high national capability, and national capability is directly related to firm capability.
Subjects
global product development
location advantage
complexity
capability
market size
engineering workforce
labor cost
market growth rate
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