Organizational modularity on new product development

The aim of the current study is to look at a new dimension of structural features at the firm level instead of the level of the individual project. The present study focuses on structural dimensions when firms rapidly increase product variety while achieving stable quality across various products. Based on a cross-industry sample of 103 Korean manufacturers, this study examines the role of organizational modularity, which is a new structural feature whereby present-day organizations are able to successfully develop various products. The product variety has a significant and positive effect on all the NPD performance indicators both before and after the inclusion of the control variables. The results show the mediating effect of organizational modularity on the relationship between product variety and ‘NPD operational performance’(or profitability).