Major New Product Development Research Articles

Differentiating Major and Incremental New Product Development: The Effects of Functional and Numerical Workforce Flexibility*

This study seeks to explain the differential effects of workforce flexibility on incremental and major new product development (NPD). Drawing on the resource‐based theory of the firm, human resource management research, and innovation management literature, the authors distinguish two types of workforce flexibility, functional and numerical, and hypothesize differential effects on NPD outcomes. A large‐scale sample of 284 Dutch firms across various manufacturing goods and business services industries serves to test these hypotheses. The results suggest that functional flexibility positively influences incremental NPD only, internal numerical flexibility negatively influences incremental NPD only, and external numerical flexibility positively influences major NPD only. Thus, differences between major and incremental NPD are grounded in the human resource flexibility of the firm. This complements research that found that such differences lie in critical development activities, learning processes, and capabilities. It also complements product innovation research on flexibility in NPD processes and on flexibility in organizational structures and routines. It extends the resource‐based theory of the firm suggesting that human resource flexibility is part of the dynamic capabilities that allow firms to reconfigure existing competencies. The conclusions imply that managers of manufacturing and service firms may use training and education and create a functional flexible workforce that can progressively enhance incremental NPD outcomes. They may want to avoid paying overtime, because such internal numerical flexibility hampers incremental NPD, but use fixed‐term contracts to expand external numerical flexibility to enhance major NPD.

The new product quality/NPD performance relationship as mediated by NPD entry strategies

This study focuses on an investigation of the relationships among important dimensions of new product quality, new product development (NPD) technical proficiency, and the mediating effects of NPD entry strategies. The use of various entry strategies for the development of new products has special significance from a global perspective in that they can provide organisations alternative ways to develop and commercialise new products. Our research data was obtained from NPD managers primarily employed by US firms. We received 131 completed survey instruments. We found that a number of new product quality dimensions were significantly associated with the proficiency with which major NPD technical activities were performed. Our research also suggests that there is no difference in new product quality for new products produced by the various NPD entry strategies investigated when evaluated using eight major dimensions of product quality. Our findings suggest several implications for NPD management and theory.

Failure mode and effects analysis (FMEA) in the context of risk management in new product development

PurposeEffectively managing risk is an essential element of successful project management. In this sense, the present study seeks to propose a systematisation of technical risk management through the use of FMEA to optimise the decision making process in new product development (NPD).Design/methodology/approachThe methodological approach adopted in this paper is a case study at an automaker in Brazil. Data were gathered from various sources, mostly participant observation and document analysis of two important NPD programmes. The risk management system was described and its influence on programs development analysed.FindingsResults included a reduction in the number of project and test planning loopings as well as a reduced number of prototypes needed to approve product components. In addition, there was a positive influence on the product development decision‐making process, evidenced by better allocation of resources among projects at the programme.Research limitations/implicationsThe study is limited to a single case study which considers two major NPD programmes. Replications among other units of analysis are needed to further validate current findings.Originality/valueThis paper is one of the few published studies that report and discuss the FMEA within a broad context of risk analysis.

Distributed New Product Development Project Based on Internet and World‐Wide Web: A Case Study

The deluge of hype about the wonders of the Internet, Intranets, and the World Wide Web continues unabated. At the same time, we hear numerous tales about endless streams of busy signals, broken connections, and painfully slow response times. Surveying the apparent gap between the promise and the often‐painful reality, a skeptical manager might reasonably question whether this technology can satisfy the rigorous demands of business users such as product development project teams.In a case study of a large, geographically distributed product development project, Ari‐Pekka Hameri and Jukka Nihtila find that Web‐based applications can play an important role in new‐product development (NPD) efforts. Particularly when projects involve numerous teams from various locations, such tools can provide effective media for communicating and disseminating information. The case study also suggests that these networked information technology (IT) applications can offer important benefits in terms of project and process management.The project described in this study involves a major NPD collaboration, with several independent subprojects and hundreds of team members from various research institutes and companies. The Internet and the World Wide Web provide the media for managing and disseminating project data. Using hypertext links, the Web‐based system gives team members easy access to engineering drawings, 3D models, parameter lists, prototype test results, and other engineering information. The point‐and‐click interface also allows team members to access information about the project structure and schedules, as well as meeting notes, newsgroups, and electronic bulletin boards.Analysis of the file‐transfer activities between the Web server and the project groups highlights several important points regarding networked IT applications, information sharing, and project management. First, the system used in this project serves primarily for disseminating information, rather than for fostering collaboration between different groups. Increased collaboration among networked team members probably requires more sophisticated version‐ and configuration‐management capabilities. Second, file‐transfer activities typically come in bursts around project milestones; this highlights the essential role that project milestones play in coordinating the work of distributed team members. The electronic media enhance not only the work leading up to milestones, but also the dissemination of decisions made at each milestone.

Distributed new product development project based on internet and world-wide web: A case study

The deluge of hype about the wonders of the Internet, Intranets, and the World Wide Web continues unabated. At the same time, we hear numerous tales about endless streams of busy signals, broken connections, and painfully slow response times. Surveying the apparent gap between the promise and the often-painful reality, a skeptical manager might reasonably question whether this technology can satisfy the rigorous demands of business users such as product development project teams. In a case study of a large, geographically distributed product development project, Ari-Pekka Hameri and Jukka Nihtilä find that Web-based applications can play an important role in new-product development (NPD) efforts. Particularly when projects involve numerous teams from various locations, such tools can provide effective media for communicating and disseminating information. The case study also suggests that these networked information technology (IT) applications can offer important benefits in terms of project and process management. The project described in this study involves a major NPD collaboration, with several independent subprojects and hundreds of team members from various research institutes and companies. The Internet and the World Wide Web provide the media for managing and disseminating project data. Using hypertext links, the Web-based system gives team members easy access to engineering drawings, 3D models, parameter lists, prototype test results, and other engineering information. The point-and-click interface also allows team members to access information about the project structure and schedules, as well as meeting notes, newsgroups, and electronic bulletin boards. Analysis of the file-transfer activities between the Web server and the project groups highlights several important points regarding networked IT applications, information sharing, and project management. First, the system used in this project serves primarily for disseminating information, rather than for fostering collaboration between different groups. Increased collaboration among networked team members probably requires more sophisticated version- and configuration-management capabilities. Second, file-transfer activities typically come in bursts around project milestones; this highlights the essential role that project milestones play in coordinating the work of distributed team members. The electronic media enhance not only the work leading up to milestones, but also the dissemination of decisions made at each milestone.