Integration In New Product Development Research Articles

WHY AND HOW TO INVOLVE PURCHASING IN NEW PRODUCT DEVELOPMENT?

In new product development (NPD) firms increasingly have to rely on external expertise from suppliers. However, results of early supplier integration have been found to be ambiguous. This research empirically tests the hypothesis that the participation of professional purchasing agents early on in the supplier integration process plays a decisive role to distinguish successful projects. Our sample gave evidence that early supply management integration positively moderated supplier involvement’s effect on firm success. Hence, firms may benefit from avoiding supplier integration without professional purchasing management. Still, in many firms the procurement department is not yet integrated in NPD processes early on. Our research identifies four measures those firms applied, in which purchasing got fully embedded in the innovation process: top-management support, structural differentiation, explicit processes, and a collaborative corporate culture. This finding can serve as blue print for implementing purchasing integration and therewith improve the success of supplier integration in NPD.

R&D Marketing Integration in New Product Development: The Case of the Telecommunications Industry in Malaysia (Preliminary Findings)

Developing new products in a complex environment, such as in the telecommunications industry, involves significant integrated effort-particularly between that of R&D and Marketing. The failure to integrate R&D and Marketing in new product development can result in over-designed, over-priced, and either obsolete or radically-advanced products with little customer value. This paper attempts to offer insights into R&D and Marketing integration in. the telecommunications industry in Malaysia. In general, only a few telecommunication companies have achieved effective R&D-Marketing integration which is significant in certain areas requiring the integration.

Original equipment manufacturer (OEM)-supplier integration to prepare for production ramp-up

Purpose Although prior research provides evidence that production ramp-up is often disrupted by supplier-related problems, it fails to discuss how the original equipment manufacturer (OEM) and various types of suppliers integrate their functions and operations to secure preparations for production ramp-up. The purpose of this paper is to investigate OEM–supplier integration in a new product development (NPD) project to prepare for production ramp-up. Design/methodology/approach The results presented in this paper are based on a real-time, longitudinal study of a single collaborative NPD project in the mechanical engineering industry. The NPD project involves seven suppliers and it is carried out in a large Swedish company (the OEM) and fits the theory-elaborating approach of this research. Findings This study argues that the aspect of timing in OEM–supplier integration, the OEM’s research and development (R&D) attitude toward collaboration and the OEM’s (R&D) operating procedure are challenges affecting the preparation for production ramp-up. The following three mechanisms to facilitate OEM–supplier integration in order to prepare for production ramp-up are also discussed: the mediator’s role, the OEM’s face-to-face meeting at the project level and suppliers’ formal face-to-face meetings with the OEM and internally. Originality/value This paper elaborates on and extends prior research on production ramp-up by conducting an empirical analysis that incorporates supplier integration in NPD. It bridges the gap between the literature on production ramp-up and on supplier integration in NPD and clearly indicates that supplier integration is an important prerequisite for successful production ramp-up.

The landscape of open innovation in Brazil: An analysis of the recent literature

Abstract Paper aims This article aims to identify and analyze the main studies, practices, and challenges for the adoption of open innovation (OI) presented in recent Brazilian literature. Originality Although many studies have already been carried out in Brazil in the area of OI, there is a lack of theoretical research which analyzes the Brazilian research in this field. Research method Firstly, we identified the articles on OI in important Brazilian journals. Secondly, we carried out a qualitative analysis of these publications. Main findings The focus of research in the area can be divided into three main areas: (i) university–company collaboration; (ii) public support for innovation; and, (iii) integration in new product development. Implications for theory and practice This study presents a synthesis of results of research on OI in the Brazilian scenario. Furthermore, we present practices and difficulties for the adoption of OI identified by the Brazilian studies.

Knowledge management, supplier integration, and new product development

There are three ways of developing parts for the end product in relation to the supplier: Black box, grey box, and white box. While in the black box approach suppliers are completely responsible for the new parts, in white box approach suppliers act like a contract manufacturer. Grey box approach however requires true collaborative efforts between companies and their suppliers. In this paper, we will investigate how to improve supplier involvement and grey box new product development (NPD) process based on Knowledge-based view of the firm. Survey methodology and structural equation modelling using Partial Least Square Method (PLS) is used to collect and analyse data. Data were collected by a professional research firm. 102 suitable responses have been collected. While knowledge management (KM) did not have a direct impact on the NPD performance, supplier NPD integration has direct and mediating effect on both NPD and financial performance outcomes. Sub-construct analysis revealed further findings that are insightful. We developed a strong supplier NPD integration measure and strengthen NPD performance measure. As much difficult as it is, as researchers, we need to develop more complex models and collect more data to reach more meaningful findings. Best to our knowledge our paper is one of the rare researches that investigate the relationship between KM and supplier NPD integration (SNPDI). Analysing sub-constructs also reveal that companies must fine calibrate their approach to KM and Supplier NPD integration. The Expectation sub-construct of SNPDI was newly developed and found to be significant on the outcomes.

The role of cross-functional integration in new product development: differences between incremental and radical innovation projects

The literature on new product development (NPD) contains several studies of management practices involved in different types of innovation. However, few studies focus on how cross-functional integration affects incremental and radical innovation product projects. The purpose of this study is to explore this aspect, from a qualitative perspective, through case studies of four high-tech firms in Brazil. Eight NPD projects were studied. The findings suggest that radical and incremental innovation NPD projects require different management practices in the studied cases. In incremental NPD projects, greater integration efforts may not be necessary. However, the following practices should be adopted in projects involving radical innovation product projects: intense involvement of technical teams, flexibility in the early stages of NPD, and geographical separation between the development team and other departments of the firm. Moreover, the application of these same practices in projects of incremental innovation in NPD may not bring positive results.

International orientation and cross-functional integration in new product development

Drawing upon an organizational learning perspective, this study suggests that international orientation and functional integration are important determinants of new product success in the global market. Based on survey data of 188 Korean manufacturing firms, we examined the interplay between international orientation and cross-functional integration in new product development (NPD). The results reveal that internationally oriented firms can gain crucial market expertise for successful NPD, and cross-functional integration amplifies the benefits of international orientation. Consistent with the organizational learning perspective, this study highlights the importance of forming an organizational culture that actively pursues foreign market opportunities and promotes collaboration among functional areas.

Measuring Modularity: Engineering and Management Effects of Different Approaches

While a variety of “product” modularity measures have been proposed and empirically used, little comparative research has been conducted on the characteristics and efficacy of such measures. This study explores how the use of diverse modularity measures affects the analysis of the “mirroring” hypothesis. Particularly, this study analyzes the relationship between “product” modularity measures and the degree of: 1) buyer–supplier integration in new product development; 2) supply chain configuration. The empirical results suggest which of the analyzed measures of modularity are preferable, question the overall utility of such measures to really understand the organizational implications of complex technological systems, and point to alternative measurement approaches.

An interpretative model from the elasticity theory to explore knowledge integration in new product development

This paper presents a conceptual model to explore the knowledge integration (KI) practices of internal and external company actors involved in the New Product Development (NPD) process of the aerospace industry. The model is based on the linkage of elasticity principles, particularly Hooke’s Law, to Knowledge Management theory. KI practices are considered as a force pushing the NPD process and are metaphorically described as the spring addressed by Hooke’s law. The integration of the knowledge of internal and external company actors impacts NPD, reducing the dimensions of the whole process, in terms of phases, through the application of the concurrent engineering approach. The whole NPD process is improved in terms of the reduction of uncertainty and complexity, and with an ‘integrated energy’ that sustains the pressure of the fast-changing competitive environment. The model is explored to provide an interpretation of the conceptualisation phase of a new aerospace product development process. Qualitative data were collected and analysed. Insights regarding the applications of the model and the theoretical implications are also provided for applications in other industries.

Stakeholder integration in new product development: a systematic analysis of drivers and firm capabilities

In this article, we develop a conceptual model of stakeholder integration in new product development (NPD) that (i) explains the drivers of the process and (ii) proposes a framework of capabilities that firms need for successful stakeholder integration. The focus lies on external stakeholders that directly influence the adoption of new products. We conduct a systematic literature review and content analyze a sample of 96 peer‐reviewed journal articles. The study is restricted to the medical device industry to enable the use of specific search terms and the consistent categorization of information. We dedicate a section to showing how the framework applies to other settings. The drivers of stakeholder integration are classified into push factors (i.e., expected benefits for the focal firm) and pull factors (i.e., expected benefits for the stakeholders). This study provides an initial model of how stakeholder integration works based on its drivers. In addition, three related stakeholder integration capabilities emerge: stakeholder identification capability, stakeholder interaction capability and stakeholder input integration capability. The paper proposes a description of these capabilities for stakeholder integration in NPD and, thus, contributes to stakeholder theory and research on the management of NPD. The results open new paths for empirical testing and offer practical guidance on how to successfully integrate stakeholders in NPD processes.

Effects of firm and environmental characteristics on supplier integration in new product development

In this paper, we explore how environmental and firm characteristics affect supplier integration in new product development, i.e. timing and depth of supplier integration. We examine such environmental and firm characteristics as market and technological turbulence, supplier innovativeness, and supplier knowledge intensity. Using the data from surveys of Korean Small- and Medium-Sized Enterprises (SMEs), we conduct a structural equation modelling. The results indicate that the market turbulence speeds up the supplier integration, but the technological turbulence delays it. Knowledge intensity makes the depth of supplier integration greater. Finally, integration timing and depth affect the performance of new product development differently. Rapid supplier integration affects the performance negatively, whereas deep supplier integration improves it. We explain the logic behind the analysis result and suggest managerial implications.

Effects of firm and environmental characteristics on supplier integration in new product development

Effects of firm and environmental characteristics on supplier integration in new product development

The moderating effect of product complexity on new product development and supply chain management integration

The purpose of this study is to investigate whether product complexity moderates the impact of integration programs in both new product development (NPD) and supply chain (SC) management on operational performance. Results are based on statistical analyses of data collected from an international sample of manufacturing firms through the fifth edition of the International Manufacturing Strategy Survey (IMSS 5). The main findings are that NPD and SC integration do have an impact on performance, while product complexity alone has not. When considering the moderating effect, complexity has no impact on NPD integration, while there is a negative moderating impact on SC integration. This study bridges together different streams of research, showing how both NPD and SC integration allow managing product complexity while improving performance.

Exploring the Boundaries of Stakeholder Integration in NPD – A Systematic Review

In this article we develop a model of stakeholder integration in new product development (NPD) that (i) explains the drivers of the process and (ii) proposes a framework of capabilities that firms need for successful stakeholder integration. The focus lies on external stakeholders that directly influence commercialization, purchase or adoption of products. We conducted a systematic literature review and content-analyzed the selected sample of 103 articles. The study was restricted to the medical device industry to enable the consistent search and categorization of information. In the article we dedicate a section to show how the framework applies to other settings. The drivers of stakeholder integration were classified into push factors (potential benefits for the focal firm) and pull factors (potential benefits for the stakeholders). Three capabilities for stakeholder integration were derived from an analysis of the barriers to and the success factors of stakeholder integration in NPD: stakeholder identification capability, stakeholder interaction capability and stakeholder input integration capability. Theoretical and practical implications follow from the improved understanding of stakeholder integration processes and the uncovering of the capabilities that support firms in this task.

Customer Integration in New Product Development: A Literature Review Concerning the Appropriateness of Different Customer Integration Methods to Attain Customer Knowledge

In many instances, customers are seen as one of the key resources for new product development (NPD), as they often have deep product knowledge as well as experience and creativity potential gained by regular product usage. From knowledge management perspective, customers’ input to NPD is manifested in different forms of knowledge. Customers’ input to NPD typically reflects their needs and desires (need information) but may also represent suggestions describing how ideas can be transferred into marketable products (solution information), in some cases it even leads to radical innovations (leading edge information). In order to internalize customer knowledge, in theory different methods are discussed. However, little is known about these methods’ effectiveness and efficiency to transmit customers’ knowledge to firms. This research identifies a total of 15 methods with the help of a systematic literature review. By systematically analyzing these methods, we found that there are methods within which customers are involved only “passively” in NPD, as well as methods that enable a more “active” customer integration. This study exhibits that the methods which enable an active customer integration, compared to methods where customers are integrated only passively in NPD, are more suitable for attaining customer knowledge within innovation development.

Erratum to: Social Crowd Integration in New Product Development: Crowdsourcing Communities Nourish the Open Innovation Paradigm

The core of the open innovation paradigm is based on the principle of collecting ideas from external sources into the organization, and bringing those adapted, transformed and enriched ideas to the market. However, under the constant pressure of being innovative, companies have to try harder to tap their customers’ knowledge and abilities. Crowdsourcing communities provide an arena for a vast amount of consumers to actively participate in innovation processes. However, as this kind of external participation in innovation processes is still in its infancy, organizations need guidance and analytic support to reveal the potential of the open innovation paradigm. Therefore, this paper analyses new product development using social crowd integration concepts and—as a result—points to further promising directions and subtopics to perform future research in this area.

Social Crowd Integration in New Product Development: Crowdsourcing Communities Nourish the Open Innovation Paradigm

Social Crowd Integration in New Product Development: Crowdsourcing Communities Nourish the Open Innovation Paradigm

An investigation of the black-box supplier integration in new product development

This research examines black-box supplier integration in new product development (NPD). A model and several hypotheses are proposed to study the relationship between product task characteristics (importance and complexity), supplier integration, and product performance. Data from 136 U.S. high-tech firms were used to test the hypotheses. Results suggest that assessing the importance and complexity of NPD tasks is critical to the implementation of supplier integration innovation strategy. Firms are likely to perform NPD tasks that are related to firms' core competencies in-house. They tend to externalize complex tasks to suppliers in order to utilize suppliers' resources and to increase NPD speed. The black-box supplier integration influences the speed to market. However, it is more effective on speed to market when technology uncertainty is low than when technology uncertainty is high.

Supplier integration in new product development: Computer mediated communication, knowledge exchange and buyer performance

In new product development (NPD), the buyer–supplier relationship is changing. Suppliers are becoming an integral part of the design team. This study investigates the effectiveness of computer-mediated and face-to-face communication channels on knowledge exchange between buyer and supplier firms, and ultimately buyer NPD and market performance. Open innovation literature and media richness theory are used to develop hypotheses which are then empirically tested using data collected from 157 R&D project managers from U.S. manufacturing firms. To date, empirical studies on the link between supplier integration and buyer performance show conflicting results. Structural equation modeling found a significant positive link between knowledge exchange and NPD performance, measured both in terms of effectiveness and efficiency, and a significant positive link between effective and efficient NPD and market performance. A surprising finding is that contrary to media richness theory, email can perform like face-to-face communication transmitting rich information and having a positive relationship to knowledge exchange between buyer and supplier. It was also found that with face-to-face communication, knowledge exchange fully mediates the relationship with effective NPD while with email communication knowledge exchange fully mediates the relationship with efficient NPD. Video conferencing was found to have no significant effect on knowledge exchange and the effect of web-based tools was significant and negative. The implications of these findings in theory and practice are discussed.

Risk evaluation of customer integration in new product development under uncertainty

This study mainly focuses on the risk evaluation of customer integration in new product development. Customer integration in product innovation projects has been widely recognized a best practice to enhance innovation success rate and reduces the development cycle time, but it also has many potential risks including loss of know-how, much dependence on customer, and limitation to incremental innovations, etc. Unfortunately, there are few researches about risk evaluation for customer integration which is important to the risk management of the co-innovation process. Further, evaluating customer integration risk involves much subjectivity and vagueness. To manipulate this problem, a novel evaluation approach for assessing customer integration risk under uncertainty is proposed. The novel approach integrates the merit of rough set theory in handling vagueness and the strength of group analytic hierarchy process (GAHP) in modeling hierarchy evaluation. Finally, an application in a project of mobile phone development is provided to demonstrate the application and potential of the methodology.