Management practices influencing new product success and failure in the United States and Scandinavia: a cross-cultural comparative study

Abstract

This comparative cross-cultural study of United States (U.S.) and Scandinavian telecommunications products found both similarities and differences in the successful new product development (NPD) management practices within the U.S. and Scandinavia. Proficiencies in conducting development, marketing, and customer service activities were identified as important to NPD success in both Scandinavia and the U.S. However, differences between the U.S. and Scandinavia were found with regard to the importance of research and development/marketing integration and project manager competency, with these aspects being more important to NPD success in the U.S. Additional differences between Scandinavia and the U.S. were found in the successful NPD strategies for entering familiar versus unfamiliar markets, with the Scandinavian systems being more oriented toward product design strategies. The overall results characterized U.S. NPD management systems as product-market oriented, task focused, and project management driven. By comparison, the Scandinavian NPD management systems were characterized as product-service oriented, driven by enduring interpersonal relationships and socially oriented to helping others. These characterizations were found to be consistent with dissimilarities in the national cultures of the U.S. and Scandinavia, suggesting that some core NPD management principles may be generally important to success, whereas others may be culturally dependent. The importance of recognizing these differences is pointed out in a discussion of their implications for NPD theory and practice in today’s global economy.