Purpose Faced with today’s digital and uncertain environments, especially in dynamic and innovation-driven contexts such as new product development (NPD) projects, traditional project governance often ignores adaptive capabilities needed to sustain organizational effectiveness. This study investigates how adaptive project governance (APG) influences organizational effectiveness (OE), with an emphasis on the mediating roles of trust and coordination. It thereby addresses a critical gap in understanding the trust and coordination mechanisms through which APG shapes OE in digital and uncertain project environments. Design/methodology/approach A structured survey was administered to project management professionals in Chinese enterprises engaged in NPD projects. The measurement instrument was refined based on validated scales and expert review to ensure relevance to agile and digital project environments. Partial least squares structural equation modeling (PLS-SEM) was employed to evaluate the effects of APG on OE and to test mediation through competence-based trust, benevolence-based trust, intra-team coordination, and inter-team coordination. Findings Governance of projects and self-organizing teams have significant positive effects on OE, both directly and indirectly via competence-based trust and intra-team coordination, confirming their partial mediation roles. However, adaptive development approaches act mainly as enabling conditions rather than direct performance drivers, and benevolence-based trust and inter-team coordination do not exhibit significant mediating effects. Overall, these findings provide empirical evidence on explaining the micro-mechanisms of trust and coordination in translating APG into OE in agile NPD projects. Originality/value This study extends existing adaptive governance research by revealing the micro-foundations (competence-based trust and intra-team coordination) through which APG transforms high-order capabilities into OE. Then, it establishes a priority ordering for effective governance implementation and provides a crucial boundary condition by demonstrating that APG’s iterative component acts merely as an enabler, refining models of agile governance effectiveness in dynamic NPD contexts.

Industries involved in research and development (R&D) for new product development (NPD) typically employ experts from various disciplines and knowledge domains, including engineering design, art-based design, interface design, information technology, and more. These differences in discipline and experience influence the approaches and solutions taken when addressing problems in NPD projects, such as functionality, aesthetics, usability, manufacturing, and so on. For this reason, an in-depth study was conducted to explore intuitive design thinking behaviour across different knowledge domains. The study employed an empirical method involving the observation of experimental design and Design Protocol Analysis (DPA), conducted with the participation of thirty final-year undergraduate students who were divided into three groups: engineering design (ENG), art-based design (IDE), and interface design (ID). Besides profiling the intuitive design thinking behaviours of these three domain groups, findings also revealed distinct patterns in problem-solving whereby ENG participants emphasized usability with less focus on aesthetics; IDE participants prioritized aesthetics with less emphasis on usability; and ID participants balanced both ergonomic and aesthetic considerations. Based on these findings, the researchers proposed a new model for design management within organizations that employ multidisciplinary designers. This model is intended to enhance the quality of operations in the NPD process and to shorten project durations by reducing repetitive processes caused by rejections at different stages of development.

Purpose This study investigates the dynamics of iterations in Internet of Things (IoT) new product development (NPD), focusing on the interplay between data collection, information creation and value creation phases. Design/methodology/approach A multiple-case study approach was employed, examining five IoT NPD projects across various industries. Data were collected through 20 in-depth semi-structured interviews and analysed using qualitative methods. Findings The study identifies uncertainty related to data collection components as the primary driver of iteration cycles in IoT NPD. The technological readiness level (TRL) of data collection components and the concept readiness of the new IoT product significantly influence this uncertainty. The research identifies key nominally complete activities triggering iterations across the data-value chain and reasons for iterations including technological uncertainty, data quality evolution, product concept maturity, interdependencies between phases, validation requirements and external partnerships. Research limitations/implications The study is limited to IoT products with human data sources in specific domains. Future research could expand to other IoT sectors and employ larger sample sizes. Practical implications The findings suggest that project managers should focus on reducing uncertainty in data collection components to minimize unplanned iterations. Strategies include reducing the number of high-risk components and clearly defining system requirements early in the development process. Originality/value This study introduces an IoT NPD iteration framework, a novel theoretical model that explains how uncertainty in data collection components drives iteration cycles in IoT NPD. By mapping the reciprocal dependencies between data collection, information creation and value realization, the framework offers a structured approach to identifying the root causes of iteration and strategies for managing complexity in IoT NPD projects.

Abstract New product development (NPD) project failure, a common occurrence for high-tech firms, serves as an important source of learning and breeds future success, thereby prompting scholars to investigate the mechanisms of learning from NPD project failure. Studies has revealed the cognitive and emotional mechanisms underlying learning, and has investigated the role of post-failure factors in affecting these mechanisms; However, the influence of pre-failure factors is under-developed. Drawing upon the risk-as-feelings perspective, our study fills this gap by investigating one crucial pre-failure factor – risk anticipation. Our study categorizes risk anticipation into the likelihood anticipation and the magnitude anticipation, and hypothesizes that these two dimensions of risk anticipation affect learning from project failure distinctively. Based on two-wave data collected from 232 project managers in high-tech firms, we find likelihood anticipation positively affects learning from project failure primarily through a cognitive mechanism, as indicated by a positive mediation effect of decision-making comprehensiveness. In contrast, magnitude anticipation negatively affects learning from project failure primarily through an emotional mechanism, as indicated by a negative mediation effect of decision-making comprehensiveness. We shed light on the risk management practices for NPD project in high-tech firms, and offers insights into the post-project learning that breeds future NPD project success.

Purpose The study aims to explore how IT competency and knowledge capabilities jointly influence collaboration during new product development (NPD), addressing a gap in the existing literature that typically investigates these factors independently. Design/methodology/approach The study utilizes resource orchestration theory to investigate interactions among knowledge capabilities (social integration, knowledge exploration and knowledge exploitation) and IT competency (flexible and assimilated digitization). Data were collected from 327 responses representing 105 firms and empirically analyzed to identify their combined impact on NPD collaboration. Findings The findings reveal a significant positive impact on NPD collaboration when IT competency interacts with knowledge capabilities. Individually, knowledge exploitation capability does not significantly influence collaboration. Similarly, IT competency alone has no direct effect, emphasizing those technological competencies must be integrated with social knowledge processes to maximize collaborative outcomes. Research limitations/implications Organizations should strategically integrate technological and social elements in their collaborative processes. Specifically, enhancing flexible digitization combined with social integration and knowledge exploration capabilities can substantially improve collaboration effectiveness in NPD projects. Originality/value This research extends the existing literature by demonstrating the critical role of simultaneously orchestrating knowledge capabilities and IT competency in optimizing NPD collaboration. It highlights the importance of balancing technological tools with social interactions.

ABSTRACT The integration of artificial intelligence (AI) into the new product development (NPD) process has been shown to significantly enhance innovation success. Drawing on situated AI theory, this study investigates two core senior management behaviours—emphasis on AI adoption and reward systems for AI adoption – and their roles in catalysing AI-driven innovation and facilitating AI integration across the seven NPD stages. Based on empirical analysis of 558 AI-driven NPD projects, the findings reveal that both senior management’s emphasis on AI adoption and reward systems positively impact innovation performance. Notably, senior management’s emphasis on AI adoption, rather than reward systems, significantly improves innovation quality, innovation speed, and product innovativeness. The results further indicate that senior management’s emphasis on AI adoption facilitates AI integration across six of the seven NPD stages, with the exception of the product testing stage. In contrast, reward systems for AI adoption positively influence AI usage in four stages, primarily within the early (idea development, business analysis, product design) and late (operations management) phases of the NPD process. This research advances situated AI theory to elucidate the mechanisms through which senior management behaviours drive AI-driven innovation success and adoption, and guides manager in effectively leveraging AI’s potential within the NPD process.

Innovative Work Behavior (IWB) is widely recognized as a driver of organizational competitiveness, particularly in New Product Development (NPD) projects where uncertainty and rapid change demand creativity and adaptability. Although a considerable amount of research has been done on IWB, most of the studies tend to focus on it by using only one theoretical perspective thus failing to establish a comprehensive picture of this multidimensional phenomenon. This paper provides a comprehensive review that synthesizes four influential perspectives, Social Cognitive Theory (SCT), Self-Determination Theory (SDT), the Theory of Innovation and Transformational Leadership Theory (TLT) into an integrative framework for explaining IWB in NPD contexts. The framework clarifies how self-efficacy and learning (SCT), motivational needs for autonomy, competence, and relatedness (SDT), organizational structures and entrepreneurial orientation (Innovation Theory), and transformational leadership practices (TLT) jointly shape employees’ innovative contributions in NPD projects. By combining these perspectives, the review moves beyond fragmented accounts of IWB to highlight the dynamic interplay of individual, motivational, organizational, and leadership factors. This synthesis advances theoretical clarity while offering practical guidance for managers seeking to foster innovation and creativity. The paper concludes by stating future research directions, which implies empirically testable hypotheses, that test cross-level mechanisms and interaction. Holistically, the framework contributes to the literature and points out the theoretical and practical importance of the knowledge on IWB in the context of the NPD settings.

Taking Turns Leading? Rotational Leadership in New Product Development Projects With Supplier Involvement

This study aims to propose a strategic framework to enhance the competitiveness of small software development firms facing financial and Research & Development (R&D) workforce constraints, through dynamic project portfolio optimization. To achieve this, the study analyzes the causal loop between cash flow and human resource allocation, and suggests optimal resource distribution strategies between contracted and new product development (NPD) projects to maximize corporate profitability. A mathematical model-based simulation was developed to examine the impact of human resource allocation strategies in various project portfolio environments. The simulation incorporates resource constraints, feasibility, profitability, and risk factors into policy design. For NPD projects in particular, dynamic management techniques such as idle resource utilization, project suspension, and restart options were applied. The simulation results indicate that prioritizing contracted projects significantly improves cash flow stability and corporate survival rates. In contrast, prioritizing NPD projects increases the risk of capital depletion. Additionally, strategies that utilize idle personnel in internal projects were shown to positively impact profit. The study also confirms that R&D hiring and downsizing policies have a critical influence on long-term profitability and sustainable growth. Overall, this study offers practical strategic insights for small software firms to overcome resource limitations and establish effective project portfolio strategies. It also demonstrates the applicability of dynamic resource management and decision-making models in real-world business environments.

New Product Development (NPD) is a complex process requiring significant investment in resources, time, and effort [1]. The success of NPD projects depends on various factors, including the ability of project teams to make informed decisions based on available data and information and create a shared vision among team members [2][3]. However, human decision-making is inherently subject to cognitive biases and heuristics, which can distort judgment and compromise outcomes [4]. Recognizing and addressing these cognitive factors is a pressing issue in the context of NPD [5].

A Design Management Tool for Product Development in SMEs: The Integrated Design Management (IDM) Tool

Artificial intelligence (AI) holds transformative potential for decision-making in new product development (NPD), yet firms remain hesitant to entrust investment Go/No-Go project decisions entirely to AI. This article explores how AI can address critical challenges in NPD, particularly by predicting product success using data-driven models. The author introduces AI-PRISM, an innovative seven-factor scorecard model powered by AI, designed to systematically assess NPD projects, fill information gaps, and provide unbiased success probabilities. AI-PRISM leverages external data sources and rigorous analysis to overcome the limitations of traditional methods, such as human biases and incomplete data. Validation tests demonstrate its reliability and accuracy, outperforming human evaluators in consistency. By integrating success probabilities into financial metrics like Expected Commercial Value (ECV), AI-PRISM enhances the accuracy of Go/No-Go decisions, potentially doubling productivity in RD&E

Abstract Tolerating failure has gained recognition as a crucial catalyst for product innovation. However, there is a limited understanding of how and under what conditions project leaders' perceptions of failure normalization—the norms regarding failure in their work environment—can enhance product innovativeness in the context of new product development (NPD). Drawing upon sensemaking and motivation theories, we propose a moderated mediation model to address this research gap. Data were collected from 181 high‐tech ventures in China, with responses gathered at three different time points from matched respondents. Utilizing moderated path analysis and the Monte Carlo method, our findings reveal that failure normalization primarily fosters product innovativeness by facilitating learning from failure. Importantly, this positive effect is contingent upon the project leader's passion for inventing. A profound passion for inventing significantly enhances NPD leaders' motivation to learn from failures, thereby acting as a pivotal factor that determines whether failure normalization promotes or impedes product innovativeness. This research thus elucidates the previously inconclusive relationship between failure normalization and product innovativeness as presented in the literature. It underscores the dual importance of organizational culture (specifically, failure normalization) and individual motivation (specifically, the passion for inventing) in driving learning and innovation within the NPD process. The practical implications of these findings are significant for high‐tech ventures seeking to enhance their NPD outcomes. Specifically, cultivating an organizational culture that perceives failure as an opportunity for learning, coupled with recognizing and fostering the passion for inventing among NPD project leaders, can boost NPD product innovativeness.

New product development (NPD) in the medical device industry is critical for advancing healthcare technology and improving patient outcomes. Due to high usage of automated processes and applications in healthcare, the medical devices are not limited to products but have expanded to software as medical device. However, the failure rate of NPD projects in this sector remains high due to various challenges. This article explores the complex NPD process, which includes concept development, feasibility studies, design, and development, verification and validation, regulatory approval, and commercialization. Major reasons for project failures are identified, such as regulatory challenges, Change Management issues, market misalignment, communication failures, and insufficient risk management. Addressing these failure points requires a multifaceted approach. Regulatory pathways should be navigated with careful planning and compliance, and market needs must be thoroughly understood through comprehensive research. Resource allocation should be optimized to avoid constraints, and effective communication channels should be established to align all project participants. Finally, implementing rigorous risk management strategies, such as Failure Modes and Effects Analysis (FMEA), can help mitigate potential risks early in the development process. By adopting these strategies, medical device companies can improve their NPD processes, reduce the failure rate of projects, and bring innovative and effective medical devices to market successfully.

Balanced or imbalanced, that is the question: The effect of R&D/marketing power structure on new product development time

How to prevent ruining new product development projects with suppliers? A failure factors’ perspective

Timely new product development (NPD) has always been a top priority in NPD projects. Despite realizing its importance, the empirical examination of specific factors that may improve NPD time performance has remained limited. This study investigated how temporal reflexivity influences NPD time performance based on the time, interaction, and performance (TIP) theory. Using a mixed-methods design, our research findings showed that temporal reflexivity significantly and positively influenced temporal coordination. Contrary to our hypothesis, the temporal coordination was insignificantly related to the NPD time performance. Furthermore, temporal leadership significantly and positively moderated the relationship between temporal reflexivity and temporal coordination.

Coordination cost is a critical management issue in cross-functional automotive new product development (NPD) projects, especially in complex environments. However, the literature has neglected to analyze the specific mechanisms by which coordination costs due to complexity may be reduced. This article examines whether and how two dimensions of temporal leadership reduce the coordination cost caused by complexity. In particular, we argue that two dimensions of temporal leadership, namely relationship-oriented and task-oriented temporal leadership, mitigate the effects of complexity on NPD coordination cost through coordination resistance. Based on survey data from 196 automotive NPD project managers, results show that coordination resistance significantly mediates the relationship between complexity and coordination costs. Relationship- and task-oriented temporal leadership also moderate the relationship between different kinds of project complexity and coordination resistance. When the level of relationship-oriented temporal leadership is high, the effect of organizational complexity on coordination resistance weakens. Contrary to our hypotheses, the effect of technological complexity on coordination resistance is stronger when the level of task-oriented temporal leadership is high, suggesting that the project manager should consider different dimensions of temporal leadership when faced with different complexities.

Unexpected events and new information during a new product development (NPD) project may require responsiveness regarding development efforts and new decisions about the allocation of financial resources. Prior research mainly focused on major decisions about financial resource allocations at predefined milestones; this study zooms in on more frequent and smaller financial resource allocation decisions between formal reviews. This research is based on a case study of a large car company that manages NPD projects with long lead times and large budgets, which are often reviewed and adjusted because of new events that unfold during these projects. We identify an approach for within-project NPD cost compensation at these more frequent and smaller financial resource allocation decisions, which prioritizes the goal of keeping NPD costs in check by requiring teams to compensate NPD cost overruns elsewhere within their project. The study empirically investigates factors associated with the use of this approach, which are based on the need and the feasibility of finding cost compensation. This is particularly relevant for development projects with a high level of uncertainty, which require regular budgetary responsiveness.

PurposeThis paper examines the role of purchasing in facilitating early supplier involvement in new product development (NPD) in contexts of technological uncertainty (TU). Taking a purchasing perspective, it develops a moderate model to explain the effects of supplier involvement on NPD performance and whether and how knowledge orchestration capability (KOC) and TU affect these relationships. Additionally, KOC drivers are defined.Design/methodology/approachA total of 317 usable questionnaires from Chinese high-technology firms were collected. Moderated multiple regression (MMR) was used to test all hypotheses. Resource orchestration theory (ROT) was the adopted theoretical lens.FindingsTwo forms of supplier involvement (as knowledge source and co-creator) were found to distinctly affect NPD performance and have potential substitutive relationships. Purchasing KOC positively moderates the relationships between forms of supplier involvement on NPD performance. TU strengthens the moderating role of purchasing KOC. Furthermore, purchasing status and supply complexity are important antecedents for purchasing KOC.Practical implicationsThese findings serve as a blueprint for involving purchasing in technologically uncertain NPD projects and improve supplier NPD integration. Additionally, management should recognize the purchasing function's role and empower it to identify ideas, knowledge and solutions within supply networks.Originality/valueThis research contributes to the ROT by examining the role of purchasing KOC on supplier involvement in NPD performance, especially under TU. Moreover, it demonstrates significant and positive relations between purchasing department status and external supply complexity on its KOC.