New Product Development Research Research Articles

More is less: The dual role of government subsidy in firms’ new product development

This study focuses on “the paradox of government support,” and examines the direct, moderating, and contingent effects of government subsidies on new product development (NPD). Drawing on the resource management perspective, we argue that subsidies lead to both learning effects and inefficiency problems. Different subsidy levels make these two conflicting effects more or less salient. Consequently, subsidies and firms’ NPD have an inverted U-shaped relationship. Moreover, subsidies negatively (positively) moderate the relationship between a firm’s internal (external) R&D investments and NPD, which is further strengthened (weakened) by state ownership. An empirical analysis of panel data on Chinese high-growth firms strongly supports our hypotheses. We discuss the implications for the resource management perspective and NPD research, high-tech industry practitioners, and policymakers in emerging economies.

Agile R&D units' organisation and its relationship with innovation performance

Firms increasingly apply agile approaches in their development processes, and therefore researchers started investigating how agility affects innovation performance. However, previous research on agility often only considers software development or approaches the concept only from an outcome perspective (i.e. increased adaptability to changes) instead of from a capability perspective (i.e. how to organise for adaptability to be successful). Consequently, research failed to investigate how the organisation of agile research and development (R&D) units in physical new product development (NPD) affects innovation performance. We apply structural equation modelling on 162 R&D units in a large industrial firm and analyse the interplay of agile R&D units' organisation, the resulting agility, front‐end success and NPD success. Moreover, we consider contingency factors of environmental turbulence. The study extends research on agility's neglected capability perspective in innovation management, thus providing a better understanding of agility's relationship with innovation performance and showing managers how to increase their unit's NPD success.

The 2022 PDMA Doctoral Consortium: Emerging research priorities in new product development and innovation and insights into community building

AbstractIn July 2022, the University of Tennessee at Knoxville (UTK) hosted the fifth Product Development Management Association (PDMA) Doctoral Consortium. As a critical vehicle to promote doctoral student research and scholarly networking, this consortium featured emerging research topics on new product development (NPD) and innovation by promising doctoral students and leading scholars, provided exposure to cutting‐edge practice in additive manufacturing, and facilitated opportunities for the NPD and innovation research community building. This article summarizes key insights and synthesizes important research topics emerging from the event.

Management accounting and new product development: a systematic literature review and future research directions

This paper systematically reviews the existing literature at the crossroads of management accounting and new product development. At present, the accumulated knowledge on this topic is fragmented. Different research settings, diverse research focuses, and the use of different research methods are amongst the main reasons for the existing fragmentation and lack of an overall, conceptually coherent view of the knowledge gained on the management accounting phenomenon in new product development environments. As a response to the current knowledge fragmentation, the purpose of this paper is to consolidate existing evidence, provide an overview of the literature’s state-of-the-art, and propose paths for its future development. As a result of the systematisation attempt, this paper recognises the threefold identity of management accounting research in new product development and proposes a conceptual framework that collocates existing contributions along a research spectrum that gradually shifts the focus from the more technical-oriented aspects of management accounting to the more sociological-oriented aspects. Accordingly, this paper identifies the following research paths and systematise their relative contributions: (1) management accounting techniques and calculations; (2) management accounting information types and roles; (3) management accountants’ involvement and roles in new product development environments. Besides allowing the systematisation of previous investigations, this paper’s three research avenues provide a ‘lighthouse’ to those who, in future, aim to contribute to the current debate and knowledge creation at the intersection of management accounting and new product development. In this regard, the final part of the paper advances nine research propositions that emanate from the literature review and outlines a research agenda with directions for future research.

Marketing Research and New Product Development in Selected Organizations in Enugu State.

In today’s world, the importance of effective marketing research in new product development (NPD) is now widely accepted wing to rapid advancement in technology, constant changes in consumers’ choices and preferences, and dynamic trends in tastes and fashions. Marketing research has been seen as the very nexus that links customers and firms through information. It provides information that is used to identify product strengths, weaknesses, opportunities, and threats. It is also used to generate, refine, evaluate, and interpret marketing actions, track marketing performance; and understand marketing as a discipline and process. The concept of marketing research is a very important phenomenon in new product development process. It represents the very first step that determines the success of any product. It also acts as the foundation and cornerstone of any product. To obtain the desired and appropriate results from marketing research, an organization must be guided by certain plans to satisfy all or at least most of the company objectives for it to be worthwhile. Therefore, marketing research if well-defined and formulated has an impact on new product development of an organization. The extent to which the firms put marketing research into practice in solving their marketing problems is what this study intends to examine. Marketing research is now widely accepted as one of the most important assets possessed by organization.

Commercial Product Development and Its Sustainability Impact for Rattan Cluster in Desa Trangsan

Export-based rattan industry manufacturers hold significant roles in national income, especially those in Desa Trangsan, Sukoharjo. However, the rattan industry manufacturers still have limitations in product design development, affecting design innovation. Most rattan industries in Desa Trangsan produce their products to fit their global buyer demands, including design criteria and quality the buyers set. This research focuses on the furniture design analysis for the export market in Desa Trangsan, produced by small and medium rattan manufacturers. This research aims to identify the commercial product development process and the designer’s role in the innovation process. The research uses literature study and field observation methods with a descriptive qualitative approach. The study aims to identify the most impactful commercial product development in the furniture industry in Desa Trangsan. The result shows that furniture manufacturers face challenges in performing research for new product development and need to collaborate with furniture designers or academicians who are more industrial-oriented to deliver better designs and fresh ideas to give added value to the products and companies. The research findings can pave the way for future studies that aid manufacturers in conducting research for product and design development, which is crucial to promote innovation and drive the success of the rattan industry in Desa Trangsan.

The double-edged sword effect of social media usage on new product development performance: evidence from Chinese firms

PurposeResearch on social media frequently analyze social media usage (SMU)'s positive consequences for organizations and individuals; however, recent innovation studies caution that SMU may not always lead to positive new product development (NPD) outcomes. The competing streams of research highlight a fundamental tension that exists in the social media literature exemplified by the question: Is SMU good or bad for NPD? In this manuscript, the authors suggest that a more appropriate question as follows: What are the positive and negative indirect effects of SMU on NPD performance? The purpose of this paper is to discuss the aforementioned points in detail.Design/methodology/approachA literature review provides the model and hypotheses. Using a sample of 168 Chinese firms, the authors conducted an empirical test following multiple regression analysis.FindingsThe results demonstrate that SMU facilitates business analytics (ability) and social legitimacy (opportunity) but impairs entrepreneurial proclivity (motivation). These three constructs in turn mediate the effect of SMU on NPD performance. Moreover, this paper explores how technological turbulence moderates SMU's effects on business analytics, entrepreneurship proclivity and social legitimacy.Research limitations/implicationsThe results may be affected by both the context (solely in China) and type (cross-sectional) of the data set. Future research might take a decompositional approach to study SMU's effect on innovation in different NPD stages. Furthermore, with widely varying purposes (e.g., marketing, information searching, partner collaboration, new product launch, etc.), there is certainly a need for more clarity and understanding of how firms can leverage each of these different social media activities for successful NPD.Practical implicationsFirst, we suggest that managers in China should be explicitly aware of the double-edged sword effect of SMU on NPD performance. Second, this study encourages managers to use social media carefully when technological turbulence becomes intense.Originality/valueDrawing on the ability–motivation–opportunity framework, this is one of the first studies to simultaneously examines the benefits and costs of SMU for NPD. In addition, this paper bridges the separate literatures on social media, business analytics, entrepreneurial proclivity and social legitimacy and contributes to the NPD research.

From collaborative research to new product development: why a central or brokered network position is not enough

PurposeAlthough collaborative research is believed to be an important means of accessing external knowledge, research on whether taking a strategic network position benefits new product development (NPD) is inconclusive. This study aims to unravel the conditions under which taking a strategic position within a collaborative research network is conducive for a firm’s NPD.Design/methodology/approachDrawing on social network theory, absorptive capacity theory and knowledge recombinant studies, this study examines how strategic network positions (i.e. degree centrality and structural holes) and knowledge base cohesion (i.e. local and global cohesion) in tandem affect a firm’s NPD. A panel data set of 366 firms in the Chinese automobile sector (2002–2010) is empirically analyzed, using the panel negative binomial approach with random effects and several alternate estimation approaches.FindingsThis study reveals that, rather than the volume of a firm’s knowledge base, its cohesion determines how it absorbs and uses knowledge accrued from collaborative research for NPD. Specifically, this paper finds that centrally positioned firms have greater NPD when their knowledge bases are locally cohesive, while firms spanning structural holes have more NPD when their knowledge bases are globally cohesive.Originality/valueSuccessfully transferring collaborative research outcomes into product innovation is difficult. This study contributes to the literature on strategic network positions and NPD. The findings advance the understanding of knowledge base cohesion’s moderating role in explaining how firms absorb and exploit external knowledge for internal innovation. The findings also have important implications for managers who wish to promote product innovation by engaging in collaborative research with external partners.

New Product Development Process Design for Small and Medium Enterprises: A Systematic Literature Review from the Perspective of Open Innovation

New product development (NPD) is essential for large, as well as small and medium, enterprises (SMEs). Despite its importance for the economy, challenges remain in the NPD in SMEs. Product success is related with the NPD process, so it is important for SMEs to be able to design their NPD process. This paper aims to identify SME’s NPD research topics, the characteristics of the NPD process in SMEs, and important aspects to be considered for NPD process design. The literature review is done with the analysis of 99 selected academic articles from Scopus and ScienceDirect. Content analysis, bibliographic analysis, and clustering method (based on Pearson’s correlation coefficient) are used to conduct the identification. Less-formal processes, informal strategic planning, limited resources, need technology support, and lack of capabilities in certain fields are some of the characteristics of SME’s NPD. Collaborative product development, competitive advantage, information and communication technology (ICT), concurrent engineering, quality function deployment, and continuous improvement are important keywords based on previous research in SME’s NPD. Design activities in NPD, collaboration and source of innovation, and process modelling, tools, and techniques appear to be important aspects related with the SME’s NPD process.

Extrinsic Rewards, Intrinsic Motivation, and New Product Development Performance

Reward structures can have a significant impact on the performance of new product development (NPD) teams. However, there are several gaps in our understanding of how different types of extrinsic rewards influence the creative performance of NPD teams. Drawing on key theoretical objectives for advancing rewards‐creativity research in general, and NPD research in particular, this study incorporates a cognitive and behavioral view of rewards use. In so doing, we distinguish between three kinds of extrinsic rewards: financial, recognition, and social (based on their properties). We then draw upon self‐determination theory to hypothesize the differential effects of three types of extrinsic rewards on intrinsic task motivation, and subsequently the creative performance of NPD teams. The proposed framework is tested using two rounds of survey data from 238 members of 64 NPD teams in the high‐tech industry. Results of a multilevel structural equation modeling (MLSEM) analysis show that financial rewards have a negative relationship with intrinsic task motivation, while recognition and social rewards have a positive influence. Complexity of the product being developed not only helps to mitigate the negative effects of financial rewards on intrinsic task motivation, but it also reduces the positive effects of social rewards on intrinsic task motivation. Intrinsic task motivation is found to have a positive effect on NPD creative performance in terms of both the developed product’s degree of innovation and its quality. Theoretical and managerial implications are explored.

Building trust in multi-stakeholder collaborations for new product development in the digital transformation era

PurposeThe study aims to explore the critical approaches adopted by innovative organizations and to build an environment of trust between the multiple stakeholders collaborating for new product development (NPD).Design/methodology/approachA qualitative research approach is adopted in this study. Fifteen semi-structured interviews were conducted with experts from the wood product industry in Quebec, Canada. These organizations have successfully adopted the latest technological developments and have developed a strong collaboration with their stakeholders.FindingsThe study identified eleven strategies for the innovative organizations that included early involvement of the stakeholders in the design process, developing long-term relationships and fostering a transparent environment using Industry 4.0 technologies. A novel framework for using this strategy is presented with three stages of application, namely, planning, enactment and review.Practical implicationsInter-organizational collaborations in NPD are more successful when imbued with trust. The NPD strategies must allow innovative organizations to achieve a balanced ecosystem in which value created through the adaption of new technology can be thoroughly captured through commercialization on time with no field failure.Originality/valueThe study adds to the body of knowledge in stakeholder theory and NPD research and practice.

New product development in coconut-based agro-industry: current research progress and challenges

The new product development of coconut agro-industry is very urgent because of the low innovation in launching new products. New products that are more effective and adaptive are needed to achieve higher market growth and acceptance of end-users to obtain competitive coconut agro-industry in the future. Based on this, this study aims to claim the current development of our research in new coconut-based product development and provide an initial approach to construct new products as a case study. The results show that the development of new products is divided into eight groups and the development of coconut derivatives in agro-industry is around eight percent. The low development of coconut derivatives in agro-industry results in a research challenge framework. Methods for developing new products in the coconut agroindustry include consumer preference to identify product opportunities including data mining techniques, investment feasibility study, and spatial data mining by taking analysis in multi-criteria decisions for compatibility of potential raw materials with products. The results of case studies show that alternative sequences of derivative products that are potentially developed in agro-industries are soap (H), itching medication (O), fungicide (D), sterilizing agent (L).

New direction for NPD

New direction for NPD

Four decades of new product development research: an integrative review

Changes in global market conditions and regulatory policies have led to a greater focus on new product development (NPD). To survive and compete in the market, organisations need to develop a comprehensive understanding of NPD, including the past and present trends in NPD research. This study attempts to address this need by analysing scholarly literature on NPD published in last four decades, i.e. 1976-2017. Unlike previous literature reviews that focused on specific NPD aspects such as performance measurement or model selection/evaluation, this study adopts a holistic perspective. By analysing 381 articles on NPD, we shed light on the underlying research trends, common research characteristics as well the gaps in research and potential directions for future NPD research.

Performance in new product development: a comprehensive framework, current trends, and research directions

New product development (NPD) is critical for a firm’s competitive advantage. Since the early 1980s, NPD research has steadily increased and has defined successful practices. However, owing to this research field’s fragmentedness, there is ambiguity about what successful NPD looks like. Evidence of the effective design of management control systems (MCS) concerning NPD performance is inconclusive and calls for comprehensive analysis. Yet, there is no holistic framework that covers promising practices and structures. Drawing on a body of 284 article publications, we inductively develop a framework with nine clusters that, taken together, make up NPD performance. These are grouped addressing firm-external and firm-internal phenomena, for instance, cooperation, expertise, and the NPD process. We populate each cluster with variables that are proposed to drive performance, and derive current research trends and paths for future research on NPD. The review makes two contributions to the literature and one to practice. First, the comprehensive framework of NPD performance drivers supports the adjustment of prior general MCS design implications to specific NPD settings. Second, the inductive approach sets this review apart from prior reviews of NPD performance by proposing a holistic framework that is neither biased in a domain, nor in a pre-defined structure. Third, firms will benefit from the framework, because it helps to customize the MCS such that firms can comprehensively evaluate their NPD activities and can enhance performance.

New product development in an entrepreneurial company

Entrepreneurial orientation is positively related to new product development (NPD). Through in-depth case studies of two entrepreneurial companies in the consumer packaged goods sector, this study arrives at a set of findings regarding new product development. These include aspects of new product process, role market research in NPD, consumer in-sighting and evaluation of NPD. The findings can be used for future theory building in the area of new product development.

New product development in an entrepreneurial company

Entrepreneurial orientation is positively related to new product development (NPD). Through in-depth case studies of two entrepreneurial companies in the consumer packaged goods sector, this study arrives at a set of findings regarding new product development. These include aspects of new product process, role market research in NPD, consumer in-sighting and evaluation of NPD. The findings can be used for future theory building in the area of new product development.

Sustainability, Social Media Driven Open Innovation, and New Product Development Performance*

Sustainability and social media use in open innovation play important roles in a firm's new product development (NPD) process. This research examines, in conjunction, the roles of sustainability and social media driven inbound open innovation (SMOI) for a firm's NPD performance, and further, takes a more refined approach by differentiating between different types of SMOI activities. To this end, this research develops and tests a conceptual framework, which predicts that (1) a firm's sustainability orientation (SO) is positively associated with its NPD performance, (2) customer focus (CF) partially mediates the SO–NPD performance link, and (3) particular SMOI activities moderate the CF–NPD performance link. The empirical results, using data from the Product Development and Management Association (PDMA)'s comparative performance assessment study, provide support for most of the framework. Notably, this research documents a positive link between SO and NPD performance, as well as a partial mediating role of CF. The results further suggest that social media driven open innovation activities focused on gathering market insights enhance CF directly, while social media driven open innovation activities that garner technical expertise enhance the link between CF and NPD performance. This paper bridges the separate literatures on sustainability and open innovation, and contributes to the NPD research. The findings suggest that managers should take a strategic approach to sustainability and embed it in the NPD process. Furthermore, managers should manage social media based open innovation carefully to fully benefit the firm during the front end and back end of NPD.

Consumer’s research for new functional bakery product development

Consumer’s research for new functional bakery product development

Intellectual property protection mechanisms in collaborative new product development

Intellectual property (IP) is widely recognized to be a critical issue for implementing open innovation and collaborative research in new product development (NPD). Several intellectual property protection mechanisms (IPPMs) can be employed by companies to protect their critical technology and know‐how (patents, designs, trade secrets, trademarks, copyrights). However, how they should be used in the different phases of collaborativeNPDprocesses is still debatable, and few empirical studies regarding the issue are available at the moment. This paper, which is based upon the case of anItalianNPDservice company namedMR&D, focuses on one main question: how can companies protect ideas, technology, and know‐how in collaborations concerning different phases of theNPDprocess? It proposes an initial tentative framework to answer this question by way of an analysis of pertaining literature and a case study.