| Many firms make substantial investment in advanced manufacturing technology (AMT) and information technology (IT) in anticipation of benefits. The advantages realized from these investments have been difficult to assess. This research presents a comprehensive organizational level research model to study the impact of computer-aided design (CAD) on a firm's manufacturing effectiveness, product development process performance, and overall performance.; This study discusses and examines the antecedent relationships between five constructs of interest: Product Development Practices— Concurrent Engineering, Supplier Involvement, Customer Involvement, Heavyweight Product Development Managers, and Platform Products; multidimensional CAD USAGE—Engineering Design Usage, Cross Functional Usage, Integrate with Customers Usage, and Integrate with Suppliers Usage; Manufacturing Effectiveness; Product Development Process Performance—Team Process Outcome and Team Efficiency; and Overall Firm Performance—Value to Customer.; Analyses are performed using LISREL® for Windows version 8.12a based on 175 usable responses collected via a mailed survey to 2668 firms from five industries (two digit SICs = 30, 34, 35, 37, and 38). The measurement scales for each construct (Product Development Practices, CAD USAGE, Manufacturing Effectiveness, Product Development Process Performance, and Value to Customer) are validated using confirmatory factor analysis. Validation of the various measurement scales is essential for future studies. The validation also provides a practical tool (a short questionnaire) and a set of benchmark measures to monitor the CAD usage, i.e., to provide insight into how CAD technology is employed, and whether it is utilized efficiently.; The relationships between the constructs are tested using structural equation modeling (SEM). The results support the indirect positive impact of effective CAD utilization on the various firm performance measures. The proposed research model suggests there are untapped opportunities for firms to better leverage their CAD technology. In other words, firms may have focused on the non-technical adaptations more than the technical adaptations, and were not able to take full advantage CAD. It may be a better approach to leverage the CAD technology, as suggested in the alternate model, by making the nontechnical adaptations that support technology-enabled processes. In addition, a preliminary analysis regarding the impact of contextual variables on the relationships between the five constructs of interest is also presented. |
