ACCELERATING ADAPTIVE PROCESSES - PRODUCT INNOVATION IN THE GLOBAL COMPUTER INDUSTRY

This paper contrasts two theoretical models for firms' achieving fast adaptation through product innovation. The compression model assumes a well-known, rational process and relies on squeezing together or comp ressing the sequential steps of such a process. The experiential model assumes an uncertain process and relies on improvisation, real-time e xperience, and flexibility. The two models are tested using data from 72 product development projects drawn from European, Asian, and U.S. c omputer firms. The results indicate that using an experiential strateg y of multiple design iterations, extensive testing, frequent project m ilestones, a powerful project leader, and a multifunctional team accel erates product development. In contrast, the compression strategy of s upplier involvement, use of computer-aided design, and overlapping dev elopment steps describes fast pace only for mature industry segments. The results also show that planning and rewarding for schedule attainm ent are ineffective ways of accelerating pace. We conclude with linkag es to punctuated equilibrium and selection models of adaptation, fast organizational processes, organic versus improvisational structures, a nd complexity theory.