Task co‐use and product improvement: an organization design perspective
Author(s)
Glauber, Johanna
Kretschmer, Tobias
Type
Journal Article
Abstract
Research Summary:
Co-using tasks—using the same task to produce more than one product—promises economies of scope. However, task co-use also ties products together, changing a firm's task network by introducing cross-product interdependencies. In light of these interdependencies, we identify an unrecognized downside of task co-use for product reliability: Cross-product interdependencies complicate task design and increase the risk of malfunctions. Hence, task co-use may carry a reliability penalty. Second, we propose that the reliability penalty of task co-use may shrink with experience as cross-product interdependencies allow for cross-improvements and therefore potentially higher improvement rates of task co-using products. We study the US automotive industry and find our predictions supported, indicating that task co-use is a critical design parameter with important consequences for reliability and product improvement.
Managerial Summary:
Using the same tasks to produce multiple products can help firms lower costs and achieve economies of scope. However, this practice also links products more tightly together, creating interdependencies across product lines. These interdependencies can make tasks harder to design and manage, increasing the likelihood of errors or malfunctions. As a result, task co-use may reduce product reliability—an important but often overlooked drawback. At the same time, co-used tasks can enable portfolio-wide improvements— improvements across products. As firms gain experience, problems identified in one product can lead to improvements that benefit others using the same tasks. Over time, these cross-improvements accelerate product improvement for task co-using products and can reduce the initial reliability disadvantage. Evidence from the U.S. automotive industry supports these arguments. The findings show that task co-use is a key design decision that involves meaningful trade-offs between cost savings, reliability, and improvement. For managers, this highlights the importance of carefully evaluating when and how tasks should be co-used across products, as these choices have lasting implications for product quality and improvement.
Co-using tasks—using the same task to produce more than one product—promises economies of scope. However, task co-use also ties products together, changing a firm's task network by introducing cross-product interdependencies. In light of these interdependencies, we identify an unrecognized downside of task co-use for product reliability: Cross-product interdependencies complicate task design and increase the risk of malfunctions. Hence, task co-use may carry a reliability penalty. Second, we propose that the reliability penalty of task co-use may shrink with experience as cross-product interdependencies allow for cross-improvements and therefore potentially higher improvement rates of task co-using products. We study the US automotive industry and find our predictions supported, indicating that task co-use is a critical design parameter with important consequences for reliability and product improvement.
Managerial Summary:
Using the same tasks to produce multiple products can help firms lower costs and achieve economies of scope. However, this practice also links products more tightly together, creating interdependencies across product lines. These interdependencies can make tasks harder to design and manage, increasing the likelihood of errors or malfunctions. As a result, task co-use may reduce product reliability—an important but often overlooked drawback. At the same time, co-used tasks can enable portfolio-wide improvements— improvements across products. As firms gain experience, problems identified in one product can lead to improvements that benefit others using the same tasks. Over time, these cross-improvements accelerate product improvement for task co-using products and can reduce the initial reliability disadvantage. Evidence from the U.S. automotive industry supports these arguments. The findings show that task co-use is a key design decision that involves meaningful trade-offs between cost savings, reliability, and improvement. For managers, this highlights the importance of carefully evaluating when and how tasks should be co-used across products, as these choices have lasting implications for product quality and improvement.
Date Issued
2026-05-01
Date Acceptance
2025-11-17
Citation
Strategic Management Journal, 2026, 47 (5), pp.1433-1466
ISSN
0143-2095
Publisher
Wiley
Start Page
1433
End Page
1466
Journal / Book Title
Strategic Management Journal
Volume
47
Issue
5
Copyright Statement
© 2026 The Author(s). Strategic Management Journal published by John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
License URL
Identifier
10.1002/smj.70042
Publication Status
Published
Date Publish Online
2026-01-20