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The purpose of this paper is to analyze the impact of product modularity on new product development (NPD) time performance, and the moderating effects of interfunctional integration and supplier involvement on the product modularity‐time performance relationship.

The paper analyzes data from a sample of 186 manufacturing plants settled in several countries, and operating in mechanical, electronic and transportation equipment sectors. Three hypotheses are tested through a hierarchical regression analysis.

Data analyses show that product modularity has a direct positive effect on NPD time performance, and that interfunctional integration positively moderates the product modularity‐time performance relationship. Finally, this research does not support the hypothesis that a positive interaction effect exists between product modularity and supplier …