Abstract

Based on data on Korean manufacturers, we show that new product development proficiencies mediate the relationship between platform-driven product variety expansion and product family performance. The results suggest that the higher the level of product variety offered by the firm, the higher is the level of proficiency in executing predevelopment planning, technical and marketing activities during platform product development, which enhances product family performance. Furthermore, predevelopment planning and marketing proficiencies in platform product development are more important mediators than technical proficiency. However, predevelopment planning skills are not significant for derivative products developed from a common platform. The results suggest that marketing proficiencies are more important than technical capabilities in influencing the relationship between product variety and product family performance. Although firms have to emphasise technical configuration and component design and quality issues to generate a robust platform, our findings stress the overriding importance of marketing tasks in both platform and derivative product development to ensure overall product family success.