Differentiating aspects of product innovation processes in the food industry : An exploratory study on New Zealand

Abstract

Purpose

The purpose of this paper is to sketch a comparative account of NPD approaches between registered New Zealand food companies that are doing some sort of functional foods (FF) development (Group 1) and those that are not (Group 2); to generate a better understanding of differences and commonalities in their NPD approaches from resource-based view of competitive advantage.

Design/methodology/approach

This paper opted an exploratory approach using a quantitative survey across food manufacturing companies in New Zealand. The primary foci of this empirical investigation were: orientation towards the NPD, innovation processes, collaborative NPD links and routes to commercialisation.

Findings

The results (based on a 22 per cent response rate) show a significant difference (p<0.05) in the aims and mode of NPD between Groups 1 and 2. Further it was observed that food companies in Group 1 have significantly (p<0.05) more diverse external collaborations with broader aims to collaborate, in comparison with food companies in Group 2.

Research limitations/implications

This study was conducted in New Zealand and thus generalisability of the findings may have to be interpreted carefully.

Practical implications

The traditional NPD approach (independent and closed NPD), with loose intellectual property protection practices, dominates the food manufacturing industry in New Zealand. Research-oriented collaborations need to be strengthened in their scope and content to develop the innovative capabilities and capacities of small and medium enterprises (SME's) within future value-added food productions.

Originality/value

This research provides the comparative narration of innovation process of food manufacturing companies with reference to FFs development.

Citation

Sanaullah Khan, R., Vincent Grigor, J., G. Win, A. and Boland, M. (2014), "Differentiating aspects of product innovation processes in the food industry : An exploratory study on New Zealand", British Food Journal, Vol. 116 No. 8, pp. 1346-1368. https://doi.org/10.1108/BFJ-04-2013-0094