Abstract
This paper investigates the effects of some quality management practices (cross functional teamwork, employee participation, and reward & recognition) and effective knowledge integration on new product development (NPD). Building upon the knowledge-based view of the firm, this paper argues that cross-functional teamwork, employee participation and reward & recognition are three knowledge generation practices that contribute to enhance the performance of the knowledge integration capability. Knowledge integration, in turn, leads to successful new product development. This research employs structural equation modeling to empirically examine the impacts of some quality management practices on new product development, mediated by knowledge integration, using a survey data collected from 167 Saudi firms which are listed at Saudi stock exchange (Tadawul). The findings suggest that the capability of producing new products and / or services in the Saudi firms is positively affected by the cross-functional teamwork, employee participation and reward & recognition. It is also revealed that these three practices are drivers for integration knowledge in the firms.
Highlights
New product development is in a debate everywhere and firms are taking radical measures to improve their performances all over the globe
This research is an attempt to measure the capability of firm to innovate a new product by using the different independent variables of quality management like teamwork, employee participation and reward & recognition in the Kingdom of Saudi Arabia
The results suggest that all the three variables Cross-functional Teamwork (α=0.22, p≤0.05), Employee Participation (α=0.20, p≤0.05) and Reward & Recognition (α=0.18, p≤0.05) are positively related to New product Development (x2 = 6.14, d.f. = 5, x2/d.f. = 1.22, p = 0.29, IFI = 0.95, NNFI = 0.88, CFI = 0.94, RMSEA = 0.05)
Summary
New product development is in a debate everywhere and firms are taking radical measures to improve their performances all over the globe. The prior research in this area has concentrated on numerous viewpoints, arguments and adding different factors including quality administration, operational exhibitions or budgetary execution (Molina et al 2007). This paper unfolds another aspect of the area in order to analyze the relationship between cross-functional teamwork, reward & recognition and employee participation as knowledge integrating factors. It is believed that the equal sizes firms have same resources like financial, structural and social resources; the difference lies with effectively managing the knowledge in the firm. Managing knowledge can be considered as competitive advantage for the firms, which has positive effects on the business (Davenport & Grover, 2001)
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