Journal
MANAGEMENT SCIENCE
Volume 61, Issue 11, Pages 2760-2781Publisher
INFORMS
DOI: 10.1287/mnsc.2014.2104
Keywords
colocation; knowledge interdependence; organizational design; intraorganizational learning; quality management; pharmaceutical manufacturing; information technology
Funding
- Fisher College of Business Center for International Business and Research
- Fisher College of Business Small Grants Program (The Ohio State University)
- Carlson School of Management Dean's Small Grant (University of Minnesota)
Ask authors/readers for more resources
This study investigates the conformance quality benefits of colocating manufacturing with research and development (R&D) activities. Findings from a panel data set of U.S.-based pharmaceutical plants over a 13-year period reveal that colocation of manufacturing and R&D relates to better conformance quality, on average, across the entire sample. We find that these benefits of colocation persist throughout the time period we study (1994-2007), which is surprising, given the rapid development of information and communication technologies during that time. These benefits are particularly enhanced for manufacturing plants operating with processes that involve a high level of tacit process knowledge and that belong to large firms. Our findings highlight the importance of matching organizational design with process and firm characteristics in settings involving knowledge interdependence. They also highlight the continued value of physical proximity through geographical colocation between manufacturing and R&D activities to achieve desired quality outcomes.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available