Technology turbulence and environmental scanning in Thai food new product development

Abstract

PurposeThe purpose of this paper is to examine the use of environmental scanning (ES) in the new product development (NPD) process among small and medium enterprises (SMEs) in the Thai food processing industry. This study also shows that more extensive use of ES improves new product (NP) performance, and that perception of higher technology turbulence increases usage of ES.Design/methodology/approachData from a survey of 124 Thai SMEs through statistical package for the social sciences software shows that more extensive acquisition of ES information does improve NP performance.FindingsManagers who perceive more technological turbulence do use ES more extensively. The technology strategy of the company does not have much impact on the use of ES. The results indicate that even SMEs can benefit from ES, a practice more commonly carried out by larger companies. Some SMEs seem to recognize that more turbulent environments require more extensive scanning.Research limitations/implicationsThese results may not hold exactly this way in other industries where technology plays a much greater role. Also, the impact of technology strategy on ES usage would be much more apparent in more technology intensive industries. It is clear that industry context variables should be included in future research to more fully understand the role of ES and NPD outcomes, as well as the factors that encourage companies to use ES more extensively. In addition, the ES impact on NPD outcomes should be examined in conjunction with some of the other determinants of quality NPD process.Originality/valueThe major contributions of the study consist of how comprehensive use of ES makes a significant contribution to NP performance, the findings on the impact of technology strategy, technology turbulence upon ES and the impact of ES upon NPD.