The Recent Growth Performance of US Firms in the Industrial Design Sector: An Exploratory Study

Abstract

This paper assesses the competitive factors associated with company growth in the US industrial design sector. This small but technologically advanced sector delivers critical innovation inputs to firms that produce durable goods. Evidence from a survey of 85 US design companies suggests that competitive success hinges upon service diversity. Specifically, the most commercially buoyant companies have diversified their service offerings beyond product or component design. These firms have developed strategic competencies in fields such as contract research, prototype development, product testing, technological forecasting, market analysis and even advertising. Although most US design companies are small-to-medium-sized enterprises, successful firms do not differ from their less successful counterparts in terms of employment size, occupational structure, regional location or market focus (client sectors). Instead, the key differences lie in service diversity and the quality of human capital. The paper concludes with a brief discussion of the implications of the empirical findings for future research on the dynamics of the design industry.US industrial design firms, competitive factors, service diversification,

Comparative analysis of recruitment qualifications of industrial designers in Turkey through undergraduate education programs and online recruitment resources

“…Even though the competitive process differs between communities, it is obvious that consumer behavior is inclined to take a selective course. The criteria invoked by the changing competitive conditions and by consumer attitudes (i.e., competitiveness of the producer and customer satisfaction, which is protected by law) have become the basic elements that shape the economic structure of the twenty-first century (Vanchan and Macpherson 2008). Surveys reveal that companies willing to enjoy a bigger share in the global market recruit industrial designers not only for aesthetic concerns but also for priorities such as the desire to develop new products, to be more innovative, to reflect brand identity, and to expand the diversity of products (Suel 2006).…”

The Outsourcing of Industrial Design Services by Large US Manufacturing Companies

“…The IDSA (2006) characterizes these tasks in terms of a synergistic fusion of art, engineering, and science. The art is to make something that is aesthetically pleasing; the engineering is to make something that is easy to build, maintain, or repair; whereas the science is to create something that delivers superior performance within the confines of commercial feasibility (Vanchan and MacPherson 2008). Products that score highly across these three metrics are destined to become market leaders (Design Council 2006).…”

“…Part of the outsourcing trend for industrial design can be traced to the rise of systems integration as a production strategy among large manufacturing firms (Pritchard 2001;Parker and Anderson 2002). This is notably the case in export sectors such as aerospace, machine tools, and electronics (Vanchan and MacPherson 2008). Under systems integration, the prime contractor typically disperses commercial risk on a new product launch by engaging networks of external suppliers (Harrigan 2006).…”

“…Significantly, vendors that violate trust-based conditions usually end up with tarnished reputations. For an industry that is so heavily dependent on corporate image and professionalism, failure to ''play by the rules'' can ultimately result in diminished sales prospects (Vanchan and MacPherson 2008). In this regard, the risks associated with the transmission of tacit or proprietary knowledge from clients to vendors are partially mediated by the fact that most design consultancies and custom manufacturers want repeat business and/or good referrals (IDSA 2006).…”

Designing for a Living? Income Determinants Among Firm Founders in the Dutch Design Sector

“…The emergence of the profession of designer went hand in hand to a process of externalisation, where manufacturing firms recognised the need of design for their activities but chose to outsource design-related processes to external consultants. This trend is reflected in the current occupation of designers: only a minority of designers work in in-house teams at companies, while the vast majority works as free-lance consultants or in specialised design firms (Vanchan and Macpherson, 2008).…”