What dimension of competitiveness does time-to-market performance in product design and process selection affect?

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Volume 34, Issue 11, November 2014, Pages 716-730

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It is widely recognised that design is an important factor contributing to firms׳ success because of its potential to boost their competitiveness (Hertenstein et al., 2013, Roy and Riedel, 1997). However the influential role of design extends beyond the performance of the actors directly involved in the manufacturing of products (e.g., manufacturers, retailers) and pervades different spheres of action of individuals (e.g., consumers, users), organisations (e.g., professional designers, firms), and other types of entities (e.g., nations). For instance, scholars have examined how design has changed individuals׳ perception of new products (Creusen and Schoormans, 2005, Rothwell and Gardiner, 1983), firms׳ understanding and formulation of strategy (Gemser and Leenders, 2001, Hertenstein et al., 2005, Roy and Wield, 1986), or governors׳ policy design (Berger et al., 1989, Wray, 1991). Stating that design has impacted the world around us should then come of no surprise. To draw on some real life examples, one could think of how the iPod has changed our attitude to listen music, the Kindle eReader our attitude to reading, or the recent success registered by Tiffany & Co׳s jewelleries (i.e., quarterly increase in sales of 7.5 per cent, November 2013, Financial Times). As the senior luxury goods analyst Mario Ortelli (Bernstein Research) states, “when it comes to watches and jewellery, the value and appeal of a piece can lie as much – if not more – in craftsmanship and expertise as opposed to the superficial design” (Paton, 2013a, Paton, 2013b). Thus designers have to create products which not only look good but also create value that can be appreciated by the actors involved (Utterback et al., 2006, Verganti, 2009).

Such widespread interest towards various aspects of design has led to the blossoming of multiple definitions of design, all of which are a testimony of its versatile nature (Johansson-Sköldberg et al., 2013, Schön, 1983, Simon, 1969). Although scholars agree on the centrality of design for firms׳ innovativeness, there is still uncertainty about the channels or mechanisms whereby design exerts its ‘power’. Creativity is indeed a major component of design, which translates into a high degree of subjectivity and tacitness, hence the difficulty to measure its actual contribution (Dorst and Cross, 2001, Walsh and Roy, 1983).

This conceptual paper about design in management science tries to address this gap by exploring how design phenomena changed not only firms׳ strategy making but also the way they interpret and, at the same time, inspire consumer behaviour. This latter effect is further amplified by the establishment of non-technological innovations, that is, those new products the success of which depends on more subjective and intangible factors such as aesthetics or symbolic values (Hirschman, 1982, Ravasi and Rindova, 2008). Design is understood as part of a problem-solving activity, beginning with the perception of a gap in a user experience, leading to a plan for a new artefact, and resulting in the production of that artefact. In practical terms, this means that, to better comprehend the role of design in both the development of new products and their commercialisation, a process view would account for the required activities as well as the players involved (along with their specific characteristics) to carry them out (Simon, 1969). Differently from extant innovation and management literature, the current paper proposes a new angle of analysis, that is, how the design ‘lens’ can help learn about consumers׳ emotional responses, and how it can push firms to think differently about user needs. It is also argued that these aspects will indirectly affect firms׳ organisational structure and strategy making along with their value creation processes.

The remainder of the paper is structured as follows. Section 2 reviews the various definitions of design available in the literature and specifies how it is understood for the aims of this research. Then Section 3 reviews the innovation literature by illustrating how design influenced firms׳ ways of thinking about consumers׳ needs, firms׳ approach to new product development (NPD) and strategy making, and the overall impact on the mechanisms of value creation at firm level. By building on these contributions, Section 4 discusses emergent research gaps and discusses possible avenues for future research. Final remarks and reference to the limitations of the study will conclude the paper.

The significance of design has been recognised by scholars from different fields such as artificial sciences and engineering (Hevner et al., 2004, March and Smith, 1995, Simon, 1969), innovation and aesthetics (Petroski, 1996, Verganti, 2003, Walsh, 1996), management (Cooper and Press, 1995, Dumas and Mintzberg, 1989, Walsh et al., 1992), and arts and creativity (Olins, 1986, Potts, 2009, Potts and Cunningham, 2008, Sparke, 1986). These bodies of literature highlight how the drivers for

The literature review presented in this section aims exploring how the evolving notion of design has impacted firms׳ approach to predict and interpret consumers׳ needs (Section 3.1), firms׳ internal structure and strategy making (Section 3.2), and the firm-level mechanisms in place for value creation (Section 3.3).

It is the aim of this section to follow up with the discussion of emergent gaps in the literature. Whilst not meant to be normative or all-encompassing, the intent is to draw attention to some aspects that would benefit from future scholarly attention.

This conceptual paper has highlighted how design has influenced individuals׳ behaviours and firms׳ decision making with regard to new product design and development. By emphasising the importance of design for the definition of consumers׳ needs, the restructuring of firms׳ organisational structures and strategies, and the evolution of their business models, the paper has identified different research gaps and questions that would benefit from future investigation. In particular it has been

I am indebted to Marcela Miozzo, Davide Consoli, Stan Metcalfe, Davide Ravasi, Jon Johnson and Rob Reitsma for insightful comments on previous versions of the manuscript. The thought-provoking comments of two referees and of the editor were crucial to improve the manuscript substantially. A preliminary draft was presented at the R&D Management Conference 2012, in which occasion I benefited from comments by Sarah Lubik. I acknowledge financial support from the British Economic and Social

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