Toward Sustainable Global Product Development Performance: Exploring the Criticality of Organizational Factors and the Moderating Influence of Global Innovation Culture

Abstract

In today’s dynamic and global landscape, innovation and globalization are intricately linked drivers that propel modern businesses forward, serving as indispensable pillars upon which organizations heavily rely to maintain their competitive edge. Leveraging innovation within the context of global product development (GPD) practices is imperative for organizations seeking to survive and effectively compete in the rapidly evolving marketplace. While preceding studies have primarily focused on the importance of individual and organizational capabilities, policies, and cultural factors in driving product development (PD) performance, they often overlook their interconnectedness within a global context. To address this gap, this study delves into the relationship between organizational factors and global product development performance (GPDP) while examining the moderating influence of global innovation culture (GIC). These organizational factors encompass technological innovation capabilities (TICs), team creativity (TC), dynamic capabilities (DCA), and competitive advantage (CA). Our hypothesis suggests a positive impact of these factors on GPD performance. Employing a structural equation modeling (SEM) approach through SMART-PLS 3, we analyzed data collected from 480 questionnaire forms distributed among registered global product development (GPD) organizations operating in China. The empirical findings underscore the significant influence of organizational factors on GPD performance, highlighting the critical role of global innovation culture in shaping these relationships. These insights shed light on the importance of establishing a harmonious balance between organizational culture and various factors to enhance interaction among organizational elements and optimize global product development performance. Ultimately, these efforts can lead to improvements in the overall effectiveness and sustained global product development.