Abstract
Information is an important resource for new product development (NPD) process in subsidiary. However, we still lack of research to analyze NPD process from information perspective in subsidiary context. This research is an exploratory research and it exploited 8 cases of NPD process in consumer goods subsidiaries operating in Indonesian market. Three types of information have been identified and analyzed NPD process; global, regional and local information. The result of this research reveals that new product will be resulted is determined by the type of information used. This research reveals four new product typology using information types. The semi-structured interview and archive studies generate global, regional, integrated and local NPD process. Each process has its own characteristics such as type of information used and interaction pattern among subsidiary-regional office-headquarter.
Highlights
Successful multinational operation is the result of any factors, including organization’s ability to innovate in order to create and re-create new product (Ito & Rose, 1999)
Increasing complexity and turbulence in the environment increase enlarge the need for high process quality of new product development (NPD) to generate competitive advantage in multiple countries
The need to adapt new products, systems and procedures to fit local markets has led to an increase in the need or innovative activity across subsidiaries of multinational companies (MNC) (Ghosal, 1987)
Summary
Successful multinational operation is the result of any factors, including organization’s ability to innovate in order to create and re-create new product (Ito & Rose, 1999). Increasing complexity and turbulence in the environment increase enlarge the need for high process quality of new product development (NPD) to generate competitive advantage in multiple countries. Operating in different country environment makes MNC should always capable to generate and re-generate new product in order to maintain competitiveness vis-à-vis global and local competitor. Schilling and Hill (1998) described that NPD consists of several decisions, from opportunity identification, concept development, product and process design, and commercialization. Decisions in NPD cannot be separated with commercialization decisions (Hultink et al, 1998; Di Benedetto, 1999; Hultink & Robben, 1999; Hultink et al, 2000; Guiltinan, 1999). This line of research classified NPD decisions as strategic decisions whereas commercialization as tactical decisions
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