Strategic New Product Development in Chinese Organizations: A Case Study in the High Technology Sector

Abstract

AbstractDespite a growing body of research on Chinese business practices and consumer market development, little has been written on the significance of new product development (NPD) within Chinese organizations. In addition, there has been little analysis of the influence of Chinese industry structures and national culture on approaches to NPD. A key assumption has been that it will mirror Western experience. This paper will establish whether a Western interpretation of NPD is appropriate to indigenous Chinese enterprises engaged in high technology sectors. Further, it will provide an overview of the nature of the NPD process within Chinese organizations, contextualized within the Chinese economy. The authors subsequently present the findings of a case study conducted within a high technology state‐owned enterprise. The study focuses on its engagement with NPD in both market and organizational contexts, and its relationship to research and development (R&D), production systems, and technology transfer, in particular. The paper concludes by proposing a model of the NPD process specific to Chinese organizations, and suggests that future development of the Chinese economy will necessitate greater engagement with NPD, albeit in a differing form.