Product Development Activities Research Articles

Conceptualizing a framework for customer integration during new product development of chemical companies

Purpose The purpose of this paper is to gain knowledge on the impact of customer integration on the new product development of chemical companies in growing markets. The literature affirms the value of customer integration in the new product development, but it is relatively silent on the integration of value-adding partners, who are located further down the value chain. Considerable research has shown that organizations are more successful, when they integrate customers and suppliers into the product development and design process. The research described herein juxtaposes two modes of current theory on customer integration and refines and expands the existing theoretical framework. Hence, the purpose is to build theories from cases to provide an answer to the question of how an organization adopts customer integration by refining the understanding of the different roles of value-adding partners in the innovation process. Design/methodology/approach The paper uses an extended case method, including the resource-based view, literature related to the customer integration and four cases as a basis for establishing theoretical framework. Several in-depth interviews were conducted to gather information on the managerial practice to strengthen the grounding of theory. Findings An explorative study provides a value chain-oriented theory for chemical companies to improve the efficiency of the product development process. Therefore, it differentiates between the integration of direct and indirect customers. Each party can bring in complementary resources, which are not available internally. The findings show that integration of indirect customers contributes to more accurate anticipation of market needs. This allows companies to increase their success rate for new product development (NPD) activities. Research limitations/implications The results of this explorative study cannot be generalized, as theory building from case studies stands on its own analytic unit. Therefore, scholars are encouraged to test the proposed propositions using quantitative data and to apply them in other industrial sectors. Practical implications The paper includes implications for the development of a more efficient research and development, as well as launch, process of radical innovation of chemical companies. Originality/value This is one of the first studies using a value chain-oriented approach for customer integration during new product development.

Open Business Models and Closed-Loop Value Chains: Redefining the Firm-Consumer Relationship

Driven by recent socio-economic developments, manufacturing firms increasingly adapt their business models along two dimensions. Apart from vertically integrating the entire product life cycle, traditionally separated tasks are re-allocated into new forms of horizontal stakeholder collaborations. Incorporating these two dimensions, this article develops a framework of nine business model archetypes that holistically capture the increasing openness of business models towards consumers in the emerging closed-loop value chain. Using illustrative examples, it demonstrates their broad applicability in different industries and derives important managerial implications for firm-consumer relationships, the relevance of consumer communities, new product development activities, and the sustainability of business models.

Measuring firms’ imitation activity

Although imitation is more abundant and prevalent than innovation in firms’ product and process development activities, it has been understudied in research on innovation and R&D management. For example, a valid and reliable objective firm‐level measure of the intensity of imitation activity is lacking in the extant literature. This measure is necessary to understand the antecedents and consequences of firms’ imitation activity, which has implications for R&D management. In this paper, we present novel methods that employ patent infringement litigations data to improve on the validity and reliability of measuring firms’ imitation activity. We validate our proposed measure by presenting a first model and test of R&D as a multiple‐output production function with R&D expenditure as the primary input, and innovation and imitation as joint outputs. This is in contrast to current R&D models as a single‐output production function of either innovation or imitation. This study uses a sample of 227 public firms from the computer, semiconductor, and pharmaceutical industries in the United States during 1991–2010.

Production and Innovation Networks, Global

The emergence of global corporate networks that integrate dispersed production, engineering, product development and research activities across geographic borders poses new challenges and opportunities for global studies. The challenge is to trace down and decipher the increasingly complex forms of these networks that have expanded well beyond the traditional centers of the global economy in the US, the EU and Japan. Much of the action now is in Asia, especially in China and India. An equally important challenge for global studies is to identify the drivers and impacts of these global networks that are pushing interdependence among national economies to historically unprecedented levels. Global corporations are at the main drivers, as they seek to increase return-on-investment and penetrate high-growth emerging markets. While governments until recently have been only marginal players, the global economic recession has forced them to redefine and increase their involvement. The study of global production and innovation networks (GPN and GIN) also provides a powerful tool for sharpening the research agenda of global studies and for developing new policy responses. As global networks encompass production as well as research and development (R&D), it is no longer sufficient to focus political debates about globalization on offshore outsourcing of manufacturing and services. Offshoring of R&D through GIN gives rise to a new geography of knowledge which however is not a flatter world. While the US, Europe and Japan retain their dominance in science and technology, new, yet very diverse and intensely competing locations for innovation in emerging economies have entered the stage. Compared to the established leaders, the new players have different needs and institutions, business models and capability sets. Hence, they will seek to adjust the rules of the game. Some of them, especially China, are strong enough to challenge the existing rules of the game, requiring changes in the governance of international trade, investment and finance. The study of GPN and GIN helps to guide necessary adjustments in national policies, economic governance and institutions, both in incumbent leaders and in emerging economies. Part one looks at defining characteristics of GPN and how they developed over time. Part two documents the rapid expansion of GIN and their extension into Asia. Part three presents findings on impacts.

A New Geography of Knowledge in the Electronics Industry? Asia's Role in Global Innovation Networks

Political debates about globalization are focused on offshore outsourcing of manufacturing and services. But these debates neglect an important change in the geography of knowledge -- the emergence of global innovation networks (GINs) that integrate dispersed engineering, product development, and research activities across geographic borders. This new form of global corporate networking poses new challenges and opportunities for policy-relevant research on globalization. The challenge is to trace and decipher the increasingly complex forms of these networks, which have expanded well beyond the traditional centers of the global economy in the United States, the EU, and Japan.An equally important challenge is to identify the drivers and impacts of these global networks, which are pushing interdependence among national economies and their innovation systems to historically unprecedented levels. Global corporations construct GINs as they seek to increase their return on investment and penetrate high-growth emerging markets. Although governments until recently have been only marginal players, the global economic recession has forced them to redefine and increase their involvement.At the same time, the study of GINs provides a powerful tool for sharpening the research agenda of international economics, economic geography, and international relations (and its most recent offspring, global studies) and for developing new policy responses.The spread of GINs has intensified technology-based global competition, brutally exposing structural deficiencies of current learning and innovation strategies at the firm level and technology policy at the industry level. However, many of these debates are focused on the leading large economies, and the main concern is how to foster breakthrough innovations that can support technology leadership. This monograph draws on a unique database of GINs in the electronics industry to explore the GINs’ drivers and impacts. It specifically highlights Asia’s role and discusses how integration of Asian firms into these networks affects learning, capability formation, and innovation.The argument of this study can be summarized as follows:First, the emergence of GINs is currently taking place, and is not merely something that can be expected to occur in the future. In fact, we are now in the middle of a rapid expansion of these networks. The main driver of these networks is outsourcing, which draws on the relentless slicing and dicing (“modularization”) of engineering, development, and research. This process is complex, involving multiple actors and firms of different size, and has resulted in a diversity of networking strategies and network architectures. This study highlights the systemic nature of the forces that are driving and enabling the geographical dispersion of innovation networks. Second, GINs have expanded well beyond the traditional high-tech regions in the United States, the EU, and Japan. There are now multiple locations for innovation, and even lower-order or less developed centers can still be sources of innovation. Asia’s role in these networks, formerly quite minor, is increasing. The resurgence of China and India as important markets and production sites plays an important role in that increase. The speed of learning in some of the new Asian innovation offshoring hubs is impressive, giving rise to increasingly broad-based portfolios of innovative capabilities. However, the new geography of knowledge is not a flatter world. Instead, the offshoring of research and development (RD 2) Asian firms now must increase RD and 3) integration into diverse networks of production and innovation provide new opportunities for “technology diversification” as a complementary alternative to “technology leadership” strategies that is within the reach of Asian emerging economies.Future research needs to address the potentially game-changing impact of the current breakdown of the financial system and the resultant collapse of international trade and investment. There are now clear signs that Asia’s prospects for investment and employment are grim and that demand and GDP growth will slow down significantly. It is unclear at this stage, however, how this will affect Asia’s innovative capacity and its response to the emerging new geography of knowledge. Future research thus needs to explore whether the crisis will facilitate or disrupt Asia’s integration into global networks of production and innovation.

Water accessibility impact on girl and women’s participation in education and other development activities: the case of Wuchale and Jidda Woreda, Ethiopia

Ethiopia has huge water resource potential. However, it contributed little to access to clean and safe drinking water supply and socio-economic development. The objective of this study was to assess water accessibility, its source and impact on females participation in education and other development activities at Wuchale and Jidda Woreda. To achieve this, multiple stage sampling system was used and in the first stage two kebele were purposively selected from each Woreda based on water accessibility problems. Accordingly, a total of 197 households were selected systematically and data collection were made using questionnaire, interview, and focus group discussion. Data analysis were made using statistical package for social science (SPSS version 20.0) and Microsoft excel. Descriptive statistics, Chi-square, cross tabulation and regression analysis were used as analysis tools. The result of the study identified river (49.24 %) as major source of drinking water followed by unprotected spring, pond, hand dung boreholes and improved water supply point which account about 41.11, 7.11, 2.03 and 0.51 % respectively. Access to safe drinking water is the major strange, as reiterated by 95 % of the respondent. The finding also showed that the average per capita per day per person was about 14 litter which is less than WHO standard (20 litter) and GTP of Ethiopia (15 litter). An individual get water by going an average distance of 2.78 ± 0.81 km from their residential area which was greater than the maximum distance standard (1 km) set by WHO and UNICEF; and 1.5 km by Ministry of Water and Energy in universal access plan and gross and transformation document of Ethiopia. The study also showed that about 5.23 ± 2.82 h per day were spent by girls and females for fetching water. Even after going long distance and spending a lots hours per day, the water they got lack sanitation and hygiene since they use in common with livestock and other living thing. Poor access to safe drinking water coupled with illiteracy (73.1 %) and water borne disease prevalence, greatly influenced the participation of girls and female in education, agricultural production and other development activities at study area. Hence, urgent response with regard to providing access to safe drinking water should be given to the community by concerned body.

A job demands-resources perspective on salespersons’ market intelligence activities in new product development

Research shows that R&D's use of sales’ market intelligence positively influences innovation performance. However, little is known about whether this effect hinges on salespersons’ engagement towards and perceptions of market intelligence activities (MIA). Moreover, research remains incomplete regarding the drivers of salespersons’ MIA engagement. Using dyadic data from 359 salespersons and 239 R&D managers in a multi-level model based on the job demands-resources theory, we demonstrate that the positive effect of R&D's use of sales’ market intelligence on innovation performance is especially pronounced when salespersons’ market intelligence generation is high and role ambiguity is low. We also show that although salespersons’ self-set MIA goals are a strong driver of their MIA engagement, not assigning salespersons MIA goals may be a double-edged sword: in the short run, salespersons might engage in MIA voluntarily. However, in the long run, they could incur psychological costs in terms of role ambiguity and conflict, preventing them from engaging in MIA.

Product development activities over technology life-cycles in different generations

This study aims to capture changes and priorities in product development activities over technology life-cycles. The product development activities are observed through the targets of performance maximising, cost reduction and customisation. Seven models of technology life-cycles are considered to keep track of technology changes over time by following patterns for product development activities. The empirical part of the study is based on analysing a high-tech infrastructure provider on four technology generations. This study depicts different trends of product development activities over technology life-cycles. Different technology generations can have positive and negative interactions which can be strategically beneficial. The managerial implications of this study include comprehensive insights of concurrent technology generations in the context of technology life-cycles which can be beneficial for companies product development planning.

Effect of virtual community involvement on new product development: case studies on Indonesian online commerce companies

This research aims to examine the effect of virtual community involvement during a new product development, focusing on parameters speed to market, product quality, customer needs fulfilment, and product differentiation. This study also observes the utilisation and effectiveness of social media Facebook and Twitter by companies in assisting new product development activities. The methodologies used in this research are qualitative methods specifically interviews and online observations, quantitative method using PLS-SEM data analysis technique to analyse data of 210 respondents, and case study on Indonesian online commerce companies of Gantibaju.com and Thinkcookcook.com. The result shows that there is a positive influence on product quality, customer needs fulfilment, and product differentiation at Gantibaju.com and Thinkcookcook.com. There is also a positive influence on speed to market in Thinkcookcook.com, however this is not the case with Gantibaju.com. For Thinkcookcook.com, Facebook is the most effective social media for new product development activities, while Twitter is the most effective social media used by Gantibaju.com.

Learning in Product Development: Proposed Industry Experiment Using Reflective Prototyping

This article discusses the aspect of learning activities in product development by leveraging a strategy for capturing and transferring tacit knowledge through the extensive use of reflective prototyping. With the overall aim of finding new ways for organizations to learn faster, the theory from knowledge transfer is converted into a framework for using reflective and affirmative prototypes. Rooted in this framework, an automotive industry in-situ experimental setup for studying learning, continuous evaluation and knowledge generation in product development is proposed and discussed.

減衰比を指標としたヘルムホルツ共鳴器の設計法

Helmholtz resonators are used in many industrial products as devices for reducing low-frequency noise. An advantage of the Helmholtz resonator is that the structure is simple and applicable to low-frequency noise for its size. Further, an important feature is that the development costs and product costs are relatively low in actual product development. The optimum combination of the natural frequency and modal damping ratio of a Helmholtz resonator is dependent on the characteristic of the noise source. It is selected so as to minimize the sound pressure levels when the noise is stationary. In the case of a transient noise problem, the natural frequency and modal damping ratio is tuned for maximizing the modal damping ratios of the system consisting of the main system and a Helmholtz resonator. Noise reduction effects of Helmholtz resonators are generally predicted by 3D acoustic analysis. Recently, the effects are estimated by CFD at higher sound pressure levels exceeding 100dB, because they are greatly affected by eddies generated in the neck portion of resonators. However, there is no suitable method to predict the noise reduction effects of Helmholtz resonators that engineers can use easily in the early stages of design. This paper describes a simple method for estimating the optimum value of modal damping ratios of the acoustic system having a Helmholtz resonator. Here, two-degrees-of-freedom models similar to the mass-spring-damper models used in the design of tuned mass dampers are used. In addition, the differences between the optimum conditions of tuned mass dampers and Helmholtz resonators are described.

自由振動と強制振動におけるヘルムホルツ共鳴器の最適減衰比の検討

Helmholtz resonators are used in many industrial products as devices for reducing low-frequency noise. An advantage of the Helmholtz resonator is that the structure is simple and applicable to low-frequency noise for its size. Further, an important feature is that the development costs and product costs are relatively low in actual product development. The optimum combination of the natural frequency and modal damping ratio of a Helmholtz resonator is dependent on the characteristic of the noise source. It is selected so as to minimize the sound pressure levels when the noise is stationary. In the case of a transient noise problem, the natural frequency and modal damping ratio is tuned for maximizing the modal damping ratios of the system consisting of the main system and a Helmholtz resonator. Noise reduction effects of Helmholtz resonators are generally predicted by 3D acoustic analysis. Recently, the effects are estimated by CFD at higher sound pressure levels exceeding 100dB, because they are greatly affected by eddies generated in the neck portion of resonators. However, there is no suitable method to predict the noise reduction effects of Helmholtz resonators that engineers can use easily in the early stages of design. This paper describes a simple method for estimating the optimum value of modal damping ratios of the acoustic system having a Helmholtz resonator. Here, two-degrees-of-freedom models similar to the mass-spring-damper models used in the design of tuned mass dampers are used. In addition, the difference between the optimum condition of the maximization problem of modal damping ratios and the minimization problem of sound pressure levels are described.

A Contradiction-Based Approach for Innovative Product Design

Without creativity in design there is no potential for innovation. This paper investigates the role of contradictions in enhancing creativity in product design. Based on the inventive principles of TRIZ, this paper presents a novel design method by integrating technical and physical contradiction analysis methods into the conceptual design activities of new product development (NPD). Despite the recognized importance of innovative design, there is a lack of the systematic and effective design-thinking process that can covers all conceptual design activities. To address this gap, a sharper and fundamental model of the problem-solving is created for innovative product design based on the contradiction-oriented concept. Eventually, one case study is employed to illustrate the method and the result validates that it can help designers produce more creative outcomes in product design.

New product development, R&D and culture: results from a multiple case study of German and Chinese innovation processes

Recent developments in the global economy indicate that new product development (NPD) activities are not limited to any single country; rather, they have spread across nations and cultures. This study aims to increase the understanding of NPD through an intercultural analysis by comparing innovation processes in Germany and China. Our study relates NPD and Hofstede's cultural dimensions by identifying culture-based patterns of similarities and differences between German and Chinese practices related to strategic, organisational, and operational factors. The research subjects are five international companies with research and development sites of the same business section in Germany and China. The findings reveal both culture-dependent and culture-independent factors. Most of the strategic and organisational factors in the two countries are relatively similar because of site-spanning corporate cultures, but there are differences between the countries with regard to idea generation and management.

The Quick-Fix Effect: Understanding the Role of Mean Time between Failures on the Related Reliability of Subsequent New Products

Much evidence documents the high failure rates of new product introductions. Some of these product failures can provide opportunities for learning and improvement of subsequent products. In this study, we examine the role of mean time between product failures and their influence on subsequent product introductions and their related reliability. Our panel data analysis of 136 firms from 1998 to 2012 in the medical devices industry provides evidence of myopia in learning from failures that happen too close-in-time. There are two parts to what we call the quick-fix effect in new product development. First, firms have a greater probability of introducing a new product when they experience a low mean time between product failures (MTBF) than a high MTBF. However, there is also a greater probability of introducing a new product when the MTBF reaches a certain inflection point. Second, the related reliability of future new product development activities is contingent on this past MTBF. We believe the findings suggest that fast innovation and short-cycle times in product development can lead to chronic quality and operational problems if firms do not afford enough time to fix the underlying causes to the failures.

The Emergence of the Lean Global Startup as a New Type of Firm

This article contributes to the interplay between international entrepreneurship, innovation networks, and early internationalization research by emphasizing the need to conceptualize and introduce a new type of firm: the lean global startup. It discussed two different paths in linking the lean startup and born-global internationalization strategies. The first path refers to generic lean startups that have undertaken a rapid internationalization strategy (i.e., lean-to-global startups). The second path refers to startups that have started operating on global scale since their inception and adopted the lean startup approach by seamlessly synergizing their global and lean product development activities. The article emphasizes several aspects that could be used as part of the theoretical foundation for conceptualizing lean global startups as a special new type of firm: i) the emergent nature of their business models, including the challenges of partnership development on a global scale; ii) the inherently relational nature of the global resource allocation processes; iii) the integration of the entrepreneurial, effectuation, and global marketing perspectives; iv) the need to deal with a high degree of uncertainty, including the uncertainty associated with cross-border business operations; and v) linking the ex-ante characteristics of lean startups with the ex-post characteristics of born-global firms in order to develop a technology adoption marketing perspective that considers the “crossing the chasm” process as a successful entry into a global market niche. A scalable startup typically requires a local population >100 million people. If your country doesn’t have that, you need to be born global. Your country/industry needs a ‘go global’ playbook.

Innovation through developing consumers’ community. Part I: Innovation in action

Technological changes and need for innovation represents the main concerns for organizational growth and profitability. However the main priority is still about achieving high performance through product development and consumers' engagement activities. As implementation of open innovation applications increased and value co — creation became well known and major process, companies were engaged into value co — innovation activities. From this point of view the need for joint efforts with consumers in product development arose. Thus the primary condition for an organization to be consumer centric is to define clear the vision and mission which reflects the common efforts for co — creation and diffusion of innovation. As Research & Development processes evolved and interest for innovative concepts and products arose, companies started to implement the specific instruments for consumers' attraction and engagement into design and product development. The digitalized innovation became the main source for establishing the direct communication with the consumers. In order to achieve organization growth, profitability and recognition, the companies should be aware of the innovation importance and the need for internal change. From this point of view, there is necessary to assess the organizational structures, to implement new policies and to establish strategic targets. Basically it is justified the need for platform occurrence and development. Based on case study of BMW Group, recognised leader in automotive industry for innovative concepts, there will be analysed main features within organizational context which promotes the innovation implementation. There will be provided the review of the BMW Group experience of innovation activities, main consumers' engagement strategies, the values which promote the consumer — centric product development, new opportunities assessment, major policies and concerns. The foreseen result is to understand how companies are adapting to the technical and innovation changes as the main criteria for future product development and consumers' engagement motivation through the platform — based communication.

A MODERATION STUDY OF ORGANISATIONAL INTEGRATION AND NPD PROCESS PROFICIENCY IN THE U.S. AND KOREAN HEAVY CONSTRUCTION EQUIPMENT INDUSTRIES

This study explores the potential differences between the relationships relating the market success of new products, the proficiency with which new product development (NPD) activities are executed during NPD processes, and the degree of organisational integration among various groups during NPD processes in the (U.S.) and Korea. This research addresses three major research questions: (1) Does NPD process proficiency impact new product market success in U.S. and Korean firms? (2) Does organisational integration impact new product market success in U.S. and Korean firms? and (3) Does country moderate the relationships between NPD process proficiency and new product market success, and between organisational integration and new product market success? This study is based on NPD data related to new product projects from the heavy construction equipment industries in the U.S. and Korea. Based on our combined model, it was found that NPD process development proficiency significantly impacts new product market success but organisational integration does not impact new product market success. Additionally, it was found that country moderates the NPD process proficiency-NPD market success and NPD organisational integration-NPD market success relationships. Study implications and recommendations are provided for NPD managers based on this research.

Development of Consumer Acceptable Products using CUB Analysis: An Example with burgers from Dairy Cattle

ABSTRACTIn this work, Combination of Uniform and shifted Binomial random variables (CUB) models were used to understand the role played by liking/disliking toward the sensory meat characteristics and the uncertainty of the respondents. The detection of significant similarities and differences among sensory evaluations was proposed by comparing the parameters estimated by CUB models with the aid of multidimensional scaling (MDS). The MDS approach was also proposed to confirm the presence of the two latent variables – feeling and uncertainty – estimated by CUB models. In particular, the sensory characteristics of a conventional hamburger and a new one produced from dairy cattle at the end of their milk production, properly mixed with chicken and turkey meat were evaluated and compared. This approach resulted useful to understand which hamburger was preferred and why. In particular, the results showed a good level of acceptance for both hamburgers, with a slight preference toward the new product in terms of feeling and uncertainty. The outcomes of the analysis also provided indications to meat producers oriented to exploiting dairy cattle for slaughter and could give suggestions for bottom‐up sustainable food policy implications.PRACTICAL APPLICATIONSIn this study, an integrated approach based on CUB models is proposed to evaluate and compare the sensory characteristics of a conventional hamburger and a new one produced from dairy cattle. The conclusions achieved suggested that this approach can be seen as a successful attempt to evaluate consumer acceptability toward a new food product. The results also confirm the importance of consumer‐insight in the innovation process. In particular, the proposed approach allowed integrating the sensory evaluation with marketing processes and efficiently targeting product development activities. Finally, the experimental findings of the current study can be considered an opportunity to valorize livestock production and reduce the environmental impact.

Governing product co-development projects: The role of minimal structures

In this paper we study the governance of product development projects in which multiple parties with diverse technical knowledge together co-develop new products and bring them to market. We use a minimal structures framework which consists of economic, institutional, social and technical structures. We investigate how these structures provide the firmness and flexibility needed to stimulate creativity and, at the same time, coordinate the various parties who are contributing to the product co-development project. In addition, we use the concepts of temporal embeddedness and a-temporality drawn from the literature on temporary organisations. In a case study of product co-development we observe that, while the social and technical structures govern the day-to-day product development activities, the economic and institutional structures provide the context for the project and also govern the relationships between the collaborating organisations. Although management accounting and management accountants are not directly involved in the day-to-day management of the product development process, accounting-based information is used to set the boundaries for the project. We discuss how these boundaries can provide both the firmness and the flexibility needed to promote the creativity and innovation which are needed in new product co-development projects. We suggest that these boundaries can be either broad or narrow and either permeable or impermeable, thereby creating different forms of flexibility.