Modularity and new product performance: the role of new product development speed and task uncertainty

Similar to the advantages of product modularity to a firm's overall performance, new product modularity could provide advantages to the new product development process and result in its success in the marketplace. Accordingly, this study investigates the effect of new product modularity on its financial and market-related performance (new product performance). To identify processes underlying this effect, NPD speed and task uncertainty have been considered as its mediator and moderator, respectively. In this vein, survey data from 190 Iranian manufacturing firms have been gathered and research hypotheses have been examined using structural equation modelling and bootstrapping approach. The results of this study reveal that new product modularity improves NPD speed and new product performance. Additionally, NPD speed is found to have a partial mediating role between new product modularity and performance. Finally, this study empirically shows that the positive effect of new product modularity on new product performance amplifies in tasks marked by heightened uncertainty. The findings of the current study highlight the determinant role of modular strategy and NPD speed in developing successful new products.