New Product Development Projects Research Articles

The Impact of Team Cognitive Styles on Performance of Radical and Incremental NPD Projects

Although prior studies increased our understanding of the performance implications of new product development (NPD) team members' functional backgrounds and demographic variables, they remained relatively silent on the impact of underlying psychological characteristics such as the team members' cognitive styles on project performance. The goal of this study is to explore the effects of NPD teams' cognitive styles on project performance in different kinds of NPD projects. Based on survey data from members of 95 NPD teams gathered in four Dutch manufacturing companies, hypotheses about the relationships between teams' cognitive styles and project performance of radical and incremental NPD projects are tested. Results of linear regression analyses show that the level of teams' analytical information processing positively affects project performance in both incremental and radical NPD projects, whereas the relationship between the level of teams' intuitive information processing and project performance depends on the radicalness of the project. These findings contribute to the academic discussion on team innovation, suggesting that, next to demographic and functional characteristics, cognitive styles in teams also significantly influence project performance.

The Formation of Tie Strength in a Strategic Alliance's First New Product Development Project: The Influence of Project and Partners' Characteristics

This paper draws on theories of interorganizational learning, social networks, and transaction cost economics to investigate the formation of tie strength between first‐time alliance partners. It focuses on a strategic alliance's first new product development (NPD) project, which is characterized by a lack of prior experience and insufficient trust between partners and explores how the interaction between (1) interorganizational learning (the “degree” [amount of knowledge shared] and “type” [tacit or explicit nature of the knowledge]); (2) the required communication (“frequency level” and “degree of media‐richness”) to transfer and exchange knowledge; and (3) economic transaction considerations (reducing cost and avoiding opportunism), in highly uncertain and dynamic environments, and, in the absence of an assumption of trust, will determine the future strength of the ties between partners.We argue that the “degree” and “type” of interorganizational learning that are required to efficiently develop an alliance's first NPD project determine the strength of the ties between the partners. Each “degree and type” of learning has a different impact on the frequency and media richness of the partners' communication, and consequently each leads to a different level of social tie strength between the partners. This relationship is moderated by the partners' market overlap.We suggest that the required “degree and type” of interorganizational learning is contingent on the project characteristics (degree of innovation; “radical versus incremental,” and the mode of development; “modular versus integrated”). This relationship, however, is moderated by the partners' technical skills (complementary versus similar).

Exploring the Nonlinear Impact of Organizational Integration on New Product Market Success

This article explores the nonlinear relationship between organizational integration and new product market success (NPMS). The concept of organizational integration was measured by assessing the degree of integration among various groups of people involved in the development of new products including new product development (NPD) teams that are typically the focal points of NPD efforts. New product market success was measured by examining four often‐used measures of NPD success. The mail survey research approach was used to gather empirical data from NPD managers in three major industries. The data gathered from this survey process were used as the basis from which to extract information to address this study's major research questions, which include: (1) How is the degree of new product market success related to the nonlinear degree to which groups of people (including NPD teams) integrate during NPD processes? and (2) How is the degree of new product market success related to the nonlinear degree to which separate groups of people (e.g., customers, suppliers, and functional departments) integrate during NPD processes? This study found that high levels of organizational integration (overall organizational integration and supplier organizational integration) during NPD processes are associated with high levels of new product market success. Additionally, this study found that the relationship between new product market success and organizational integration (customer organizational integration and functional organization integration) during NPD processes exhibit nonlinear, U‐shaped relationships. Therefore, the first important finding of this study confirms that various forms of organizational integration impact in a positive way the market success of new products. This suggests that management responsible for all NPD projects should consciously integrate important groups of people to support such developments. This study's findings also confirm and imply that new product developers in the studied industries should integrate marketing and research and development (R&D) over the duration of the NPD process. This suggests that new product managers must be proactive to assure that members of NPD teams are actively engaged with groups of supporting people within and outside new‐product–producing organizations. Unlike prior research, a major finding of this study suggests that the association between organizational integration and new product market success does not form inverted U‐shaped relationships. Data from this research imply that new product market success is linearly influenced by overall and supplier organizational integration. However, this study's data suggest that new product market success is nonlinearly influenced by customer and functional organizational integration. This study's data suggest that when customer organizational integration and/or functional organizational integration is increased, new product market success can be increased at a rate which is greater than a linear rate.

New product development and the effect of supplier involvement

This study investigates the problem of new product development (NPD) under supplier involvement (SI) program in a supply chain comprising a single supplier and a single buyer. The buyer, the Stackelberg leader in the supply chain, configures the design quality of the product and determines the extent of SI – the degree to which the supplier is involved in the NPD project – in order to utilize the complementary capability of the supplier. The supplier in charge of production determines the level of conformance quality to design specifications. Using the principal-agent paradigm, we propose an analytical framework that investigates the role of the SI program in the NPD project, incorporating essential factors such as the R&D cost, the transactional inefficiency, the production cost, and the transfer payment. We provide rich managerial insights into the decentralized NPD practice by analyzing the equilibrium behaviors of major decision variables (design quality, conformance quality and SI extent) with respect to internal and external environmental conditions.

Knowledge Management Strategies for Product and Process Design Teams

We consider a manager who invests in knowledge development of a product and a process design team as well as knowledge transfer between teams throughout a new product development (NPD) project. Knowledge development at a particular time (e.g., prototyping and experimentation) increases a team’s level of knowledge at that time. In contrast, the recipient’s benefits from knowledge transfer may be lagged due to the difficulties in articulating and documenting knowledge as well as the challenges regarding its interpretation and application. Over time, as each team embeds knowledge in the NPD project, the levels of product and process performance increase, thereby increasing the net revenue earned at the product launch time. In a key contribution to the literature, analytic conditions are given that characterize the dynamic rates at which knowledge development and knowledge transfer occur throughout the project. We show that the investment in knowledge development for each team and knowledge transfer between teams may be constant, front-loaded, back-loaded, U-shaped, or the peak rate may be delayed over time. As such, we show how concurrent engineering is optimally pursued throughout the NPD project.

Collaborative Product Development: The Effect of Project Complexity on the Use of Information Technology Tools and New Product Development Practices

Collaboration is an essential element of new product development (NPD). This research examines the associations between four types of information technology (IT) tools and NPD collaboration. The relationships between NPD practices and NPD collaboration are also examined. Drawing on organizational information processing theory, we propose that the relationships between IT tools and NPD collaboration will be moderated differently by three project complexity dimensions, namely, product size, project novelty, and task interdependence, due to the differing nature of information processing necessitated by each project complexity dimension. Likewise, the moderation effects of the project complexity dimensions on the relationship between NPD practices and NPD collaboration will also be different. We test our hypotheses using data from a sample of NPD projects in three manufacturing industries. We find that IT tools are associated with collaboration to a greater extent when product size is relatively large. In contrast, IT tools exhibit a smaller association with collaboration when project novelty or task interdependence is relatively high. NPD practices are found to be more significantly associated with NPD collaboration under the contingency of high project novelty or high task interdependence. The findings provide insights about circumstances where several popular IT tools are more likely to facilitate collaboration, thus informing an NPD team's IT adoption and use decisions.

Risk Management for New Product Development Projects in Food Industry

Project risk management provides a guideline for decision making in new product development (NPD) projects, reducing uncertainty and increasing success rate. However, the acceptance of formal risk management applications in industry, especially for NPD projects is still in question. A study of a food conglomerate in Thailand found that only 9% of NPD projects used a systematic approach for managing risk. 61% of the projects realised the importance of risk management, while the remaining 30% did not involve risk management at all. This study aims to develop a risk management model for NPD projects in the food industry. The first section of this paper reviews the literature on risk management theory, including international standards for risk and project management (ISO31000 and ISO21500), publications for the Project Management Body of Knowledge (PMBOK), by a professional organisation the Project Management Institute (PMI), and also academic research. 182 academic papers, published between January 2002 and August 2012 were selected. The second part interviews conducted with eight NPD experts from five of the major food manufacturers in Thailand to examine their risk management practices and problems. Conclusions are made on five topics : classification of research method, project type and industrial segment, distribution of articles by region, tools & techniques for risk management and risk factors in projects. Specific requirements of risk management for NPD projects in the food industry are identified. A risk management model and the concept of risk management applications for the food industry are proposed.

Strategic decision-making in NPD projects according to risk: Application to satellites design projects

In this paper we present a method for making strategic decisions in New Product Development (NPD) projects based on risks. In NPD the complexity of the process depends both on the nature of the design problem and the difficulties associated with managing the project (activities, risks). To design a complex product several different teams, having different competencies, work on the project. Not one among them controls the entire process. The interactions between product subsystems in NPD often lead to technological arbitration between alternative solutions.In selecting one solution over another, the risk management concerns and the overall project plan are affected. Therefore, the objective is to give the project manager the means to evaluate the effects of strategic decisions, including those that influence the selection of technological solutions for the project plan as well as those for risk treatment strategies.We propose an integrated process that comprises design, project management and risk management. It takes into consideration the design activities and risk activities to generate a design project planning where design activities and risk activities are folded into the overall design project plan. During the process of project design two different types of strategies are required: one relates to the problem design, the other to the assessment of project risks. Each strategy leads to different possible scenarios. We present a decision tree that shows the decision steps and possible project scenarios. A generic decision support system is proposed. We demonstrate its applicability by applying it to a satellite design project.

Integrating the R&D and Patent Functions: Implications for New Product Performance

This paper examines the impact of cross‐functional integration between the research and development (R&D) and the patent functions on new product development (NPD) performance. The attitudinal (collaboration) and the behavioral (contributions of the patent function to NPD) dimension of cross‐functional integration between the R&D and the patent functions are distinguished. It is also investigated if the level of innovativeness moderates the relationship between the attitudinal and the behavioral dimension of cross‐functional integration between the R&D and the patent department and NPD performance.The four hypotheses are tested based on a multi‐informant sample of 101 NPD projects which are nested within 72 technology‐based firms or strategic business units from multiple industries in Germany.The results show that the attitudinal and the behavioral dimensions of cross‐functional integration between the R&D and the patent functions have a significant and positive impact on NPD performance. This lends empirical support for the notion expressed in the literature that certain managerial capabilities are important for understanding the effect of patenting on appropriability outcomes such as value creation and performance. The level of cross‐functional integration between the patent and the R&D functions appears to be one of these critical patent management capabilities that affect the returns from investments into patents.There is support for the hypothesis that the context matters for the effect of cross‐functional integration between the R&D and the patent functions on NPD performance. In line with the initial hypothesis, the level of innovativeness positively moderates the impact of the behavioral dimension of cross‐functional integration between the R&D and the patent department on NPD performance. In contrast to the initial hypothesis, the findings reveal no moderating effect of the level of innovativeness on the link between the attitudinal dimension of cross‐functional integration between the R&D and the patent department and NPD performance. This implies that joint objectives and an open and trustful working relationship between the R&D and the patent functions are not sufficient for achieving higher NPD performance if firms aim to develop very innovative products. In the case of highly innovative products, the actual behavior, that is, the specific contributions of the patent department to the NPD project, matters.Overall, these findings have important implications for improving performance by means of effectively integrating the patent and the R&D functions during NPD.

Effects of marketing–manufacturing integration across stages of new product development on performance

Our understanding on the benefits of marketing–manufacturing integration (MMI) across various stages of new product development (NPD) process is limited. Based on the resource-based view of a firm, this study empirically examines the direct and interactive effects of MMI in four stages of NPD process on three dimensions of new product performance. Survey data from 214 completed NPD projects in Chinese manufacturing firms are employed to test the developed hypotheses using hierarchical regression. The results indicate that greater MMI in each stage is, respectively, associated with faster NPD speed. Stronger MMI in business/market opportunity analysis (BMA), technical development (TD) and product testing (PT) stage is, respectively, associated with higher NPD cost efficiency. Higher MMI in BMA and PT stage is, respectively, associated with better market performance. In addition, the interactions of MMI in BMA and TD stages and MMI in PT and product commercialization (PC) stages have positive effects on NPD speed and NPD cost efficiency, while the interaction of MMI in BMA and PC stages has negative effects on NPD speed and NPD cost efficiency. The interaction of MMI in BMA, TD and PC stages is positively related to market performance; surprisingly, the interactions of MMI in BMA, TD and PT stages and MMI in BMA, PT and PC stages are negatively related to market performance. These findings have important implications for research and practice in both the cross-functional integration and NPD areas.

Sleeping with competitors: the impact of NPD phases on stock market reactions to horizontal collaboration

Firms are increasingly collaborating with their competitors for new product development (NPD), yet the literature is almost silent on stock market reactions to these horizontal collaborations. Given the different skills and activities needed in each NPD phase, we analyze the differential stock market reactions to horizontal collaborations in the initiation, development, and commercialization phases of NPD. Analyses of a unique and comprehensive dataset with 831 NPD announcements of horizontal collaborations over 12 years reveal that, on average, the stock market reacts favorably to NPD-related horizontal collaboration in the initiation phase, but unfavorably in the development and commercialization phases. Further, these effects are asymmetrically moderated by the innovativeness of the new product and the collaborating competitor’s relative market and technological powers. Overall, our results highlight that failing to examine the specific NPD phase leads to an incomplete understanding of stock market reactions to horizontal collaboration for NPD. We offer theoretical and managerial implications regarding horizontal collaboration for each NPD phase, along with the relevant NPD project and competitor contingencies.

INTERDEPENDENCE AND COMMUNICATION BETWEEN TECHNICALLY TRAINED MANAGERS AND MARKETING MANAGERS DURING INNOVATION PROJECTS

Interdependence between Technically Trained Managers and Marketing Managers in new product development (NPD) teams is inherent, though few studies have investigated its effects within such teams. Here, interdependence is disaggregated into two underlying dimensions — the dependence of the Technically Trained Manager on the Marketing Manager, and the dependence of the Marketing Manager on the Technically Trained Manager during the project. Our model is tested using data from 184 Technically Trained Managers from Australian companies involved in NPD. The results suggest that interdependence is an important contextual variable during NPD projects. Senior managers should communicate its importance to NPD team members because of its positive effects within the NPD team. Where the Technically Trained Manager and Marketing Manager recognise their interdependence, they engage in more frequent, and more bidirectional communication. This is important because more effective communication between these two managers positively influences the quality and effectiveness of their working relationships, which in turn can increase NPD project success.

A framework for evaluating relationship among HRM practices, project success and organizational benefit

Human resource management (HRM) practices have been recognized increasingly as a basis for achieving competitive advantage. However, conceptualizing HRM in the project context is still underdeveloped. The primary purpose of this study is to validate a framework for assessing the associations among HRM practices, project success, and organizational benefit in new product development (NPD) firms. The study also evaluates the moderating role of working environment factors in the relationship between HRM practices and NPD project success. The analyses of HRM practices and relationships with NPD project success and organizational benefit are based on an industry-wide survey in the Taiwanese high-tech industry. The results suggest that implementation of HRM practices contribute significantly to NPD project success, which subsequently bringing a number of potential benefits to a firm. In addition, the findings indicate that the positive relationship between HRM practices and NPD project success depends on work hours and time availability.

An integrative model for knowledge transfer between new product development project teams

Knowledge transfer (KT) between new product development (NPD) project teams is considered by many authors as a process. A variety of works in literature have proposed models to elucidate such a KT process and its stages. However, the nomenclature used to describe these models and the proposed KT stages present large heterogeneity. Researchers from different fields have studied the KT processes; hence, there have been different interpretations or approaches for the same problem. This study presents a comparison of 14 KT models organized in two main research approaches: the emergent approach (which considers the dynamics and integration of the team) and the engineering approach (which considers the organization and management of knowledge). The comparison is based on content analysis. The main contribution of this paper is the proposition of a new model for KT between NPD project teams, integrating the previous models so as to provide a more complete and consistent KT framework.

“We must have the wrong consumers” – a case study on new food product development failure

Purpose – The aim of this paper is to investigate, in detail, an unsuccessful food development project that took place in 2008-2010. The case is studied from the viewpoint of an interpretive paradigm. This article concentrates on constructing the critical elements that led to a food development project failure. The plan was to have a traditional Finnish dish updated and introduced as a mass produced high-end convenience food. The project included new convenience food development, packaging design, consumer market research and a sensory study to back up the food product development on behalf of a newly established company. Theoretical grounds for the case are based on the new product development (NPD) research process in the food sector. Design/methodology/approach – The method applied is an explorative single within-case study. The research data were mainly obtained from qualitative materials that ranged from marketing plans to case study field notes compiled by the researchers. Quantitative data were also obtained from various types of materials but to a lesser extent. Findings – The results of the study show that the failure of new product development was connected to the factors identified in classic NPD research. In addition, five phenomena that contributed to product development failure were constructed: path-dependency; “information condensations”; the illusion of mutual knowledge and understanding; practices of problem definition; and window-of-opportunity effects. The results are presented in a form of analytical generalisation that can be applied, with certain restrictions, to other contexts for new food product development. Originality/value – Failure rates of NPD have remained the same for the last 30 years in the food sector. Failed NPD projects can be valuable assets for the food industry when properly analysed. Examination of successful NPD projects has provided valuable lists of success factors, but knowledge on phenomena having an effect on NPD failure is needed.

A Linguistic Approach to Measuring the Attractiveness of New Products in Portfolio Selection

To gain a competitive edge, companies must continually invest in new product development (NPD), and must decide how to strategically allocate limited resources. The most critical NPD activity is the accurate assessment of the attractiveness of new products, simultaneously considering favorable factors (project value and strategic fit) and unfavorable factors (project risks), especially in robust companies in developing countries. In the NPD development process, the attractiveness of products is often evaluated using information that is imprecise or ambiguous. Fuzzy logic is well-suited to inform NPD decision-making. Thus, a comprehensive method considering both favorable and unfavorable factors, and using a fuzzy weighted average to devise a fuzzy possible-attractiveness rating (FPAR) of an NPD project for portfolio selection, is proposed in this paper. FPAR is a measurement of information, which is able to retain the multiplicity of that information. The proposed evaluation technique was demonstrated using a Taiwanese company as an example. The results indicated that this method provided an accurate assessment of overall product attractiveness, necessary for obtaining organizational buy-in, and can effectively aid managers to conduct sensitive analyses, balance the impact of changes in strategy, and receive quick feedback on the results of such changes.

TECHNOLOGY UNCERTAINTY AND PROJECT MANAGERS' INFORMATION SHARING — A COMPARATIVE CASE STUDY OF TWO NEW PRODUCT DEVELOPMENT PROJECTS

Research has focused primarily on either intra-organizational information sharing (between actors within an organization) or inter-organizational information sharing (between organizations). This paper explores both intra- and inter-organizational information sharing and the role of technology uncertainty during various phases of new product development (NPD) projects. In this study, we compare two longitudinal NPD sub-projects that differ in uncertainty within the same large NPD project, in which the data source is the complete email exchange between a project manager and various actors (consisting of 3979 emails). The results show high levels of information sharing with the customer in both the early and late phases of high uncertainty. Interestingly, in the low uncertainty project, information sharing with the production department and the supplier is higher during the late phase of the NPD project. Unexpectedly, in both sub-projects, the project manager shares information with a wider range of both intra- and inter-organization actors in the early phases of the projects than in the late phases.

An Exploration of Effective Factors in New Product Development (NPD) Project Success

New products are undeniably vital for the viability and success of a firm. Firms need to create and sustain competitive advantages in order to survive in today’s highly competitive business environment. This paper’s purpose is analyzing the effects of effective factors on new product development (NPD) project success. In this research we have used a questionnaire with 29 questions to study a 134 sample of home appliance managers in Isfahan (Iran). A conceptual model has been designed to show all relationships among all variables which is tested by LISREL software. Empirical results generally support the predictions from the theory. Specifically, the findings of this study show that joint reward system, knowledge sharing, people resource and market research are key factors for NPD project success. Amount of goodness indexes (AGFI= 0.92, GFI= 0.91) shows suitability of the model.

New Product Market Success for Bio-Tech Industry

The role of organizational integration as an antecedent of new product performance has been extensively documented in the literature. A leading corporation must either develop new successful products to sustain its business competence or keep growing in global markets. Organizational integration has attracted ever-increasing interest because of the publication of seminal works and is a strategically valuable resource for successful new product development (NPD). This article focuses on NPD projects in the Taiwanese bio-tech industry. In particular, this study examines the mediate relationship between Organizational integration and new product market success through innovation capability. We propose our research model and then test it by applying structural equation modeling based on the partial least squares (PLS) methodology. The results show that organizational integration not only can achieve new product market success directly but can also increase new product market success through innovation capability.

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.