New Product Development Information Research Articles

Supplier involvement and supplier performance in new product development: Moderating effects of supplier salesperson behaviors

Supplier involvement (SI) for new product development (NPD) entails multiple relationships between buyers and their suppliers, demanding appropriate coordination mechanisms for successful NPD collaboration. This study proposes that supplier salesperson behaviors act as coordination mechanisms in the SI setting for NPD information regulating and process regulating behaviors. Drawing on information processing theory and using survey data matched with archival data, this study unravels the role of supplier salesperson behaviors in the relationship between the timing of SI and supplier performance, which is the precursor to the buyer’s NPD performance. Our results indicate that although information regulating behaviors positively moderate the timing of SI–supplier performance linkage, process regulating behaviors weaken this linkage across multiple NPD stages. This study contributes to the literature by highlighting a new salesperson’s role in the SI setting (i.e., salesperson as coordinator), which has been previously overlooked.

Accounting and new product development

PurposeThe traditional view of accounting as something that constrains innovation and conflicts with creativity is giving way to a more contemporary belief that accounting can enable innovation and support the innovative process. This paper aims to examine this evolving relationship between accounting and new product development (NPD) by exploring how interactions between NPD participants at various stages of the NPD process help to achieve the appropriate balance between firmness and flexibility which is necessary for NPD success.Design/methodology/approachA case study method is adopted. Strong structuration theory (SST) is used to examine the complex interactions that take place between managers at various stages in the NPD process, while the concept of minimal structures is drawn upon to explore how these interactions influence the role of accounting in NPD and help to achieve the desired balance between firmness and flexibility.FindingsThe findings of the study reveal that the use of accounting information in NPD is not necessarily prescriptive or normative but is embedded in the everyday interactions taking place throughout the organisation. Formal accounting information, which could be characterised as “push” information, is prepared and presented by the accountant as a formal requirement of NPD, where it is relied upon by the NPD Steering Committee to make stage-gate decisions in the latter stages of the process. This formal accounting information supports the technical structures within the minimal structures framework. Informal accounting information, which could be characterised as “pull” information, is prepared and used by the NPD team to make decisions from the early stages of NPD, often before the formal process has even begun. This information is regarded as a language or given understanding, and is often not even recognised as accounting information by those using it. This type of internalised language formulates the social structures discussed within the minimal structures framework. Together, the formal and informal use of accounting information, and the interactions implicated therein, provides the organisation with the appropriate balance of firmness and flexibility required to effectively govern the NPD process.Originality/valueThe paper contributes to accounting and innovation literature by using SST and minimal structures to explore interpersonal interactions in an NPD context.

Sources of Market Information, Its Quality and New Product Financial Performance

While we observe a growing interest in the role of market information in new product development (NPD), existing research has still largely ignored quality of market information that is a crucial issue in the era of the information society. What does affect quality of market information in new product development projects and how does this quality influence new product financial performance? In this paper we address these questions and hypothesize that sources of information (e.g. customers, competitors) influence the quality of market information and this quality affects new product financial performance through market predictability as a mediator. We test these hypotheses using data about 287 new product projects of medium-high and high technology firms from Poland. Our findings indicate that the key sources that influence market information quality are customers and competitors. More intensive collection of market information from these two sources, and especially from customers, will result in a higher quality of this information. Surprisingly, gathering market information from other market entities (e.g. suppliers, distributors) has no effect on market information quality. We also find that an important consequence of high quality market information available in NPD is high new product financial performance. Additionally, market information quality positively influences market predictability that in turn has a positive impact on the new product performance. Our results support a partial mediation effect of market predictability between the quality of market information and NPD financial performance. Based on these findings, the author discusses theoretical and managerial implications of this work and proposes paths for future research. DOI: http://dx.doi.org/10.5755/j01.ee.29.1.13405

Strong structuration theory and accounting information: an empirical study

Purpose The purpose of this paper is to explore the role of accounting information in new product development (NPD) using Strong Structuration Theory. NPD is a complex social action involving a wide range of different actors and clusters of actors. Strong Structuration Theory allows the authors to take a broad view of this social system in order to develop a complete picture of the clusters of actors involved, to comprehensively examine the relevant structures, both internal and external, and to understand how these are formed, reformed or modified through the actions of agents. Design/methodology/approach A field study of the manufacturing division of a large group was conducted which explored how managers use accounting information during NPD. Examining how these managers draw upon their conjuncturally specific structures of signification, legitimation and domination, and how these are affected by their external structural conditions and their general dispositional frames of meaning, allowed the authors to develop an in-depth understanding of the managers’ behaviour during NPD. Findings These findings suggest that the managers’ use of accounting information is determined as much by the subjective nature of the managers themselves as it is by the objective characteristics of the structures with which they interact. By using Stones’ composite research strategy, which encourages the authors to conceive of internal structures as always looking outwards and external structures as always looking inwards, the findings help the authors to understand the “connecting tissue” between the different elements of the quadripartite of structuration which has been lacking in previous research in the area. This understanding of the connecting tissue between structures was facilitated by the micro-analysis of six managers within a given conjuncture. Using the concept of the agent-in-focus as a tool with which to switch lenses from manager to manager acknowledged the web-like interdependencies between different processes of structuration. This allowed an exploration of the relationships between the various agents and structures. Originality/value This study contributes to the understanding of Stones’ Strong Structuration Theory at both an ontological and methodological level by operationalising Stones’ model in a case study setting.

A novel fuzzy quality function deployment framework

To be competitive in an increasingly competitive global market with short product life cycles, firms today must perform innovative new product development (NPD) that can fulfil dynamic demands such as quality, performance and cost. Quality function deployment (QFD) has been a popular tool in real-practice applications. However, the conventional QFD has some limitations, such as how to generalize the opinions of multiple decision-makers, how to deal with a huge amount of subjective data, how to complete a large dimensional comparison and how to consider the ambiguity and uncertainty in human decision-making. This research, thus, aims to tackle the problems and develops a comprehensive model. The model integrates QFD with fuzzy set theory and decision-making methodologies, including Delphi method, decision-making trial and evaluation laboratory and analytic network process for implementing NPD project. A case study is carried out for a solar cell manufacturer. The proposed model can help designers systematically consider relevant NPD information and develop successful products.

The effect of customer information during new product development on profits from goods and services

Purpose – This study aims to investigate how customer information obtained at different phases of a new product development (NPD) process influences profits from new offerings. Design/methodology/approach – A survey was conducted in the context of NPD in goods and services. A unique database was constructed that merged key informant survey responses with financial data for 244 firms. This database was used to replicate and extend previous research by posing a number of hypotheses regarding the role of obtaining customer information in NPD. Findings – The results show that obtaining customer information during NPD influences the profits from new offerings, which vary depending on the phase of the NPD process. The financial rewards from obtaining customer information for goods are highest in the early phases of the NPD process and decline in later phases. The financial rewards for services, on the other hand, are high in the early and late phases of the NPD process. Research limitations/implications – The research is based on a survey combined with objective financial data, that is, a combination of different data sources. The research would have benefitted from longer data series and a higher response rate. Originality/value – This study replicates and extends previous research by testing the role of obtaining customer information in both manufacturing and service firms by combining survey data with objective financial data.

Analysis of new product development research: 1998-2009

Purpose – The purpose of this paper is to present a systematic review and analysis of existing research articles on new product development (NPD) published in the 12-year period starting from 1998 to 2009. Design/methodology/approach – To explore the articles related to NPD, four key words namely new product, product design, product development and product innovation were used in combination of title or abstract or keyword of the articles through several knowledge databases. The abstracts of journal papers were read and a decision as to whether article belongs to any NPD research issue or not was made. In total, 1,127 research articles were categorized systematically and then analyzed on various principal NPD information groups. Findings – Analysis of selected articles led to a certain level of dispersion in the publication of NPD research in different journals. It is found that more attention needs to be on knowledge and creativity management, communication and information transfer in any NPD process. Originality/value – By observing extended literature from authors reviewing articles from various journals, growth in research, and variety of topics covered in NPD, a broad systematic multi journal review of NPD literature is clearly overdue. The authors have developed a comprehensive listing of publications on NPD where they have classified the surveyed papers according to various principal NPD information groups like: published year, NPD research stream, type of organization studied (industrial/consumer/service), level of innovation (high/moderate/low), NPD focus on frameworks, performance perspective (success, failure or both), NPD research design (conceptual/empirical and qualitative/quantitative) and NPD relevant best practice element. Based on the classification scheme, the issues were analyzed from the system's perspective and their implications to NPD research.

Technical complaint management from a quality perspective

Technical complaint management (TCM) comprises the processes of reception, handling, analysis and use of customer complaints. Its focus lies on the continuous improvement of products and processes based on customer complaints. This paper presents research on this quality-oriented perspective on CM. The approach is structured in four steps. Firstly, the state of the art in CM research is briefly described and analysed for its quality orientation. In order to set a base for the research to be carried out, a target system for quality-oriented CM is presented. The target system combines the customer relationship and quality management perspectives of CM. In accordance with the presented target system a reference model for quality-oriented TCM is developed and presented in detail. The model comprehends the requirements for the internal organisation of TCM in a process model. Its scope reaches from the reception of a complaint to the long-term use of complaint information in new product development. In order to evaluate the relevance of the described reference model for TCM an empirical study was carried out. In the last step, results of the study are discussed and findings are summarised.

New Product Development Model for Solar Cells

Global warming is a major reason for dramatic climate changes around the world. Among various renewable energy sources, solar energy is one of the most promising for environmental protection and natural resource scarcity resolution. With the technical advantages obtained from the semiconductor and TFT-LCD industries, the Photovoltaic (PV) industry in Taiwan can achieve a solid global position. Current PV products, however, still face a large obstacle due to high production cost and low PV conversion efficiency. An important source of competitive advantage, survival and renewal for firms in todays competitive market is successful new product development (NPD). PV firms need to carry out effective R&D in order to improve product quality and to obtain cost effectiveness. This research, thus, constructs a comprehensive model, which comprises fuzzy Delphi method (FDM) and quality function deployment (QFD), for implementing a NPD project for a PV manufacturer. The proposed model shall help designers to systematically consider relevant NPD information and reconcile tradeoffs among various performance characteristics in a fuzzy environment.

A structural process-oriented mechanism for supplier selection involved in the early stage of new product development

The supplier selection involved in new product development (NPD) is an extremely important decision in contemporary business systems, in which collaborative design is a common feature. The current researchers emphasise studies aimed at finding reasonable supplier indexes or developing good methods for selecting adequate suppliers. There remains a lack of a complete framework for supplier selection in the NPD stage from a process-oriented viewpoint. This paper proposes a unique process-oriented supplier selection mechanism which considers the NPD information process between companies and partners across the design chain. In the proposed mechanism, the design chain operations reference (DCOR) model, including a four-level framework, is adopted to systematically describe NPD processes. Then, the design structure matrix (DSM) is used to analyse the process relationship based on the results from the last level of the DCOR. A method presented by Steward (1981) is applied to partition the DSM so as to obtain the weighted aggregated scores with respect to the metrics provided by the DCOR. Finally, given weights provided by the experts, the cluster analysis is executed to select the best supplier for different processes. To demonstrate the usefulness of the proposed mechanism, a well-known computer manufacturing company in Taiwan was chosen.

The Fuzzy Front‐End of Discontinuous Innovation: Insights for Research and Management

In an article by Reid and de Brentani, a theoretical model of the process and structure for the fuzzy front‐end (FFE) of new product development (NPD) for discontinuous innovations was proposed. Its basic premise is that information flow in the early development of such innovations moves from the environment into the firm, facilitated by individuals playing three key roles at three decision‐making interfaces: (1) the boundary spanner at the boundary interface, (2) the gatekeeper at the gatekeeping interface, and (3) what is identified in this paper as the “project broker” at the project interface. The current paper builds on and augments the ideas presented in this theoretical model with the primary objective of formulating a set of propositions detailing factors affecting the flow of information, and thus role effectiveness at each of these interfaces for discontinuous innovations. The focus is on radically new innovations both because this type of innovation has the highest level of uncertainty during the FFE and because the development of products resulting from such innovations entails the greatest lack of understanding and the fewest strategies for effective management. To achieve this objective, individual, social system, and environmental factors, which promote and/or inhibit the effectiveness of the roles played during the three FFE phases, are examined in terms of both the speed and the quality of information flow. This is done with the goal of substantially improving NPD information as it proceeds through the FFE. In turn, it can help researchers, managers, and team players to better anticipate and meet the navigational challenges of this intrinsically complex, risky, but high potential, NPD scenario.

Information Processing and Firm‐Internal Environment Contingencies: Performance Impact on Global New Product Development

Innovation in its essence is an information processing activity. Thus, a major factor impacting the success of new product development (NPD) programs, especially those responding to global markets, is the firm's ability to access, share and apply NPD information, which is often widely dispersed, functionally, geographically and culturally. To this end, an IT‐communication strength is essential, one that is nested in an internal organizational environment that ensures its effective functioning. Using organizational information processing (OIP) theory as a framework, superior global NPD program performance is shown to result from an effective IT/Communication strength and the commitment components of the firm's internal environment, which are hypothesized to moderate this relationship. IT/Communication strength is identified in this study in terms of two components including the IT/Comm Infrastructure and IT/Comm Capability of the firm, whereas the moderating internal environment of the firm incorporates Resource Commitment and Senior Management Involvement. Data from a major empirical study of international NPD programs (382 SBUs) are used to develop and test this model. Based on a hierarchical regression analysis, the results are substantially supportive, with some unexpected findings. These shed light on the complex relationships of the firm's internal environment, OIP competency, and global NPD program performance.

MANAGING INFORMATION IN NEW PRODUCT DEVELOPMENT: A CONCEPTUAL REVIEW, RESEARCH PROPOSITIONS AND TENTATIVE MODEL

Many studies in new product development (NPD) single out the use of information (especially market information) as a key predictor of NPD performance, but knowledge is lacking about what type of information is needed in each phase of the NDP process to enable high NPD performance. Based on a literature review and a pilot case study, this article increases the understanding of managing information in NPD. It is argued that the capability of managing information consists of three components: acquiring, sharing, and using information. By focusing on three different phases of the NPD process, 11 propositions regarding which information, information sources and means of cross-functional integration patterns that are most important to high NPD performance have been derived in each respective phase. In addition, the article also discusses antecedents and consequences of managing information. The article concludes with implications for managers, identifies limitations and proposes an agenda for further research into this area.

New Product Development: How Cost Information Precision Affects Designer Focus and Behavior in a Multiple Objective Setting

The development of new products that satisfy customer needs in a costeffective manner is key to survival for many organizations. The role that cost information plays in new product development (NPD), such as its effect on designers' focus and crucial NPD performance measures, is unclear. This experimental study extends existing accounting NPD research by investigating the effect of two levels of cost information precision (specific versus relative) and new products (radical versus incremental) on designers' focus and two common NPD performance measures: product cost and product features. The results indicate that compared to relative cost information, specific cost information increases designers' focus on cost minimization for incremental but not radical products. However, providing designers with specific cost information results in more cost-effective designs for both types of products. In addition, contrary to expectations, more cost-effective designs do not come at the expense of reduced product features. The results show that the role played by cost information in NPD is more complex than has been suggested in prior literature.

An 'inside-out' perspective on managing information in new product development

A continuous stream of books and papers has suggested that firms need to apprehend information about environmental factors such as customers, competitors and new technologies in order to enable eff ...

Idea generation in new product development through business environmental scanning: the case of XCar

PurposeTo develop understanding of why the use of business information in new product development proves problematic in practice, and to show how obstacles and difficulties may be overcome by reference to the process of using business environmental scanning (BES) for the purpose in a real organisation.Design/methodology/approachA longitudinal case study based on a single company in the European automotive industry, the anonymous XCar. Data gathering combined participant observation and formal interviews with managers, both of which were scrupulously recorded, coded and interpreted.FindingsThe use of BES for generation of new product ideas should apply creativity to the interpretation of trend analysis, serving as a base for the formulation of product proposals. The literature argues that the process needs to be more exploratory than confirmatory, with the focus on identifying opportunities rather than, as is common, on reducing uncertainty. This case study shows how that was achieved in practice. Likewise, while some authors argue for the importance of the volume of the information collected, others assert that its use is more critical. The case study confirms the latter view, and shows how internal processes converted data into decision‐making and planning inputs.Research limitations/implicationsAs with any single‐firm case study, further research is indicated, within other industries and related to different applications.Practical implicationsThe results from this single case provide potentially useful insights into the application of business information gathering to the generation of new product ideas, both in theory and in practice. They show how the purpose of the process shifted slowly but steadily in one organisation from confirmation to exploration, though not without difficulty. One key lesson is that the managerial focus must change accordingly.Originality/valueFew detailed empirical studies are available on the gathering and application of information on the business environment in practice, specifically as an aid to new product development. This study contributes to collective knowledge by shedding light on this area.

MANAGING INFORMATION IN NEW PRODUCT DEVELOPMENT: A LITERATURE REVIEW

The new product development (NPD) process is frequently described as a sequence of information processing activities, but "information in NPD" occupies a broader conceptual space than the reduction of uncertainty. This article reviews the area of "information in NPD" by examining the literature on environmental scanning, market orientation, gatekeepers, cross-functional integration, and information use. It is argued that we can understand the process of managing information in terms of three steps: Acquiring, sharing and using. A tentative framework for this area is proposed, and managerial implications resulting from this literature review and tentative frame are outlined and presented.

Utilization and Dissemination of Information in New Product Development

Utilization and Dissemination of Information in New Product Development