HD Inputs the Nadler-Tushman Congruence Research Proposal

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The ways in which they manage their dealer network dictates in part the degree to which the company will achieve its objectives.

The final critical input group for Harley Davidson is resources. As Harley's demographic has aged, its consumers have become more demanding in terms of features and ease of maintenance. This has resulted in the development of a key resource - technology. Harley Davidson typically acquires technology rather than developing it. For example, they formed a joint venture with Porsche for expertise in engine emission compliance. This illustrates that although Harley Davidson's research and development program is focused on incremental improvements, other motorcycle manufacturers are driving the industry in terms of technological advancement, forcing Harley to keep up at least a little bit.

Therefore, developing such joint ventures and other partnerships is a means crucial for Harley to acquire needed innovation. Of all the most important inputs, technology is therefore the most difficult for Harley Davidson to acquire. Rival firms are hesitant to enter into such ventures with Harley, necessitating partnerships with automobile manufacturers or specialized racing organizations. Finding appropriate partners that can provide technological innovation to Harley Davidson is an important input but is also a tremendous challenge.

There is a moderate degree of interdependency between these inputs. We have seen that demographic shifts and the company's strong brand do not support one another in many situations.

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Occasionally, they do, resulting in tremendous surges in revenues and profits. When they do not, the company falls on hard times. Through the 1970s and early 1980s, dealer strategy did not support the changing demographics of the Harley Davidson consumer. The company therefore changed its dealership strategy to one that better supported the demographic shifts. Again, the result was improved profits.

Joint ventures for innovation support the shifting demographics, but do not support the company's brand or its dealership strategy. The interests of the brand are for as little change as possible. Yet, the need for innovation runs counter to the interests of brand development. Furthermore, using joint ventures for innovation dilutes both the brand and the dealership strategy by adding outside influence into the company.

Overall, this creates a situation where many of Harley Davidson's key inputs do not support one another. This lack of congruence compromises performance. However, the past three or four decades has shown the degree of congruence between the organization's history/brand and the prevailing consumer demographics is the most critical input pairing in terms of congruence. One is a constant; the other is in a state of flux. When the two are congruent, Harley Davidson is highly successful; conversely when they are not congruent the company suffers badly.

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