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1 – 10 of over 2000Lingjia Li, Jing Dai, Bin Guo and Yongyi Shou
As the start of a new product development (NPD) process, the front fuzzy end (FFE) is believed to determine new product performance to a large extent. However, its effects on new…
Abstract
Purpose
As the start of a new product development (NPD) process, the front fuzzy end (FFE) is believed to determine new product performance to a large extent. However, its effects on new product performance, particularly in terms of quality and cost, lack empirical evidence in the extant literature. Moreover, the joint performance effects of the FFE and cross-functional interfaces in later NPD stages (i.e. product development and product launch) are largely overlooked and deserve further investigation. Therefore, this study aims to explore the direct effects of the FFE and later stages’ joint moderating effects on new product performance (i.e. quality and cost) from a holistic process view.
Design/methodology/approach
A conceptual model is proposed to hypothesize the FFE–new product performance relationships and the joint performance effects of cross-functional interface management. A sample of 196 firms from an international survey is used and hierarchical linear regression is employed to test the proposed hypotheses.
Findings
This study finds that FFE implementation contributes to both new product quality and cost performance. Moreover, interface management in multiple NPD stages has synergistic performance effects. Specifically, the FFE, customer involvement in product development and manufacturing flexibility in product launch jointly improve new product quality performance, while the FFE, supplier involvement in product development and manufacturing flexibility in product launch jointly improve new product cost performance.
Originality/value
This study extends the NPD literature by deepening the understanding of the key roles of the FFE on new product performance and evidencing the synergistic effects of cross-functional interfaces in multiple NPD stages. Further, this study also highlights the differential joint moderating effects of interface management in later NPD stages on new product quality and cost performance. This study also offers insightful implications to NPD managers.
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Yi Li, Nelson Oly Ndubisi, Jinpeng Xu and Gang Li
From the dedication–constraint perspective, this study aims to complement ongoing discussions on the effects of switching costs on performance and explain the role of customer…
Abstract
Purpose
From the dedication–constraint perspective, this study aims to complement ongoing discussions on the effects of switching costs on performance and explain the role of customer involvement and relationship quality in the relationship between switching costs and performance.
Design/methodology/approach
After collecting data from Chinese manufacturing firms, the authors employed structural equation modeling to test their theoretical model incorporating switching costs, new product development performance, relationship quality and customer involvement.
Findings
The findings show that switching costs negatively affect three dimensions of new product development performance covering new product development market performance, new product development speed, new product development cost. More importantly, relationship quality positively moderates the relationship between switching costs and new product development performance, while customer involvement takes positive moderation effects.
Originality/value
These conclusions contribute to the knowledge of switching costs and supplier–customer relationship, and provide theoretical contributions and managerial insights for both academics and practitioners.
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Serdar S. Durmusoglu and Roger J. Calantone
The purpose of this study is to conduct a meta-analytic review based on a theoretical framework developed for investigating new product development (NPD) teams in the first two…
Abstract
Purpose
The purpose of this study is to conduct a meta-analytic review based on a theoretical framework developed for investigating new product development (NPD) teams in the first two decades of the research stream.
Design/methodology/approach
This study contributes to literature by investigating the presence of publication bias and synthesizing correlation effect sizes of 27 factors influencing three NPD team performance dimensions: overall, market-based (e.g. sales, profitability), process-based (e.g. budget adherence, schedule adherence) outcomes. Further, this study presents a path analytical model that uses the aggregate study effects to identify significant drivers of NPD team performance.
Findings
First, examination of extant literature shows no publication bias. Next, analyses show that three internal team dynamic variables have the most significant positive effect on overall NPD team performance: team member job satisfaction, cross-functional integration and superordinate identity. For market-based performance, three goal-related contextual factors exert the most positive influence, namely, goal stability, goal clarity and goal support, in respective order. Further, for process-based performance, cross-functional integration’s strong positive effect is followed by team and goal stability. Moreover, physical distance, interpersonal and task conflict have significant negative effects on NPD team performance. Finally, both market- and process-based NPD team performance are significantly influenced by NPD team’s cohesion, which acts a mediator between two contextual factors: physical distance and team tenure.
Research limitations/implications
This meta-analysis contributes to literature by providing a comprehensive model of NPD team performance predictors, their definitions, along with their corresponding effects in predicting performance. While team cohesion is found to be a strong predictor of both market- and process-based performance, future research can examine if too much cohesion has a detrimental effect, especially on market-based performance.
Practical implications
The results assist managers in shifting their priorities to ensure optimal support of NPD teams. For example, team leadership competence externally has a larger effect on overall performance compared to team leadership for internal team dynamics. Hence, team leaders should make sure that they manage the team’s relationships with external parties (e.g. other functional units) with more caution.
Originality/value
This study provides a guiding framework for analyzing NPD team performance as well as identifies and then addresses many knowledge gaps on NPD team performance.
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This paper aims to investigate the moderating effects of contextual factors which are environmental uncertainty on the relationship between human resource (HR) exploitation and HR…
Abstract
Purpose
This paper aims to investigate the moderating effects of contextual factors which are environmental uncertainty on the relationship between human resource (HR) exploitation and HR exploration with new product development (NPD) performance and the mediating role of cross-functional integration between them. The main question this study wants to answer is how a firm implements HR practices to gain better performance under different environment factors. This study is the first empirical research which testifies the influence of HR exploitation and HR exploration on NPD performance.
Design/methodology/approach
This study uses regression analysis to examine the moderating effect of environment uncertainty and structural equation modeling to test mediating effect of cross-functional integration.
Findings
The result shows that HR exploitation influences NPD performance to a higher degree when environmental uncertainty is low than high. And HR exploration plays a more important role when environmental uncertainty is high; HR exploitation influences internal integration significantly, and the effect of HR exploration on external integration is significant; and internal integration and external integration mediate the relationship between HR exploitation/exploration and NPD performance, respectively.
Originality/value
These findings not only contribute to the literature but also provide a view for organizations in making the right decision of exploitative or explorative practices under the giving environment factor which organization facing and achieving better performance.
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Pang‐Lo Liu and Chih‐Hung Tsai
High‐tech industries in Taiwan exist in an environment with diverse product requirements and intense cost reduction and information integration stress. They must develop new…
Abstract
High‐tech industries in Taiwan exist in an environment with diverse product requirements and intense cost reduction and information integration stress. They must develop new operational directions to increase industry competitiveness. Therefore, Taiwan’s high‐tech industries must continue R&D and creativity, establish knowledge sharing mechanisms and improve new product development (NPD) performance. This research analyzed and explored the influences of knowledge management (KM) and knowledge sharing mechanisms introduced by Taiwan’s high‐tech industries on new product development performance. The relationship between knowledge management capabilities and NPD performance is studied. This research considers the intervening industry and corporate position variables. Taiwan’s high‐tech industries have gradually entered the era of IT region integration and application with competitive advantage creation based upon core techniques. The in‐depth study of knowledge management and knowledge sharing introduced by the high‐tech industry revealed double meanings in academic and practical applications. The research results showed the following: (1) the stronger the knowledge management capabilities of Taiwan’s high‐tech industries, the more significant the NPD performance. (2) The better the knowledge sharing mechanism in Taiwan’s high‐tech industries, the more significant the NPD performance. (3) Corporate scale is not necessarily the critical factor in NPD success and the influence of corporate scale on NPD performance did not show significant differences. (4) The stronger the degree of leading corporate techniques, the more significant the NPD performance.
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The impact of specific investments to performance has mixed arguments. This paper aims to clarify how and under what conditions specific investments made by manufacturer tailored…
Abstract
Purpose
The impact of specific investments to performance has mixed arguments. This paper aims to clarify how and under what conditions specific investments made by manufacturer tailored to supplier affect the new product development (NPD) performance of the manufacturer itself.
Design/methodology/approach
This study develops a moderated mediation model, testing the roles of supplier involvement and information technology (IT) implementation by regression and bootstrap analyses from 378 NPD projects.
Findings
The results show both physical and human specific investments positively affect NPD performance. IT implementation strengthens the mediated role of supplier involvement, i.e. the mediator role of supplier involvement between specific investments and NPD performance link is significantly weaker while IT implementation is lower.
Originality/value
The findings contribute to identify IT implementation and supplier involvement as two important constructs, together demonstrating how and when specific investments affect NPD performance.
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Todd A. Boyle, Vinod Kumar and Uma Kumar
This is the second paper in a two‐part discussion of the determinants and performance consequences of concurrent engineering (CE) team usage. In this paper, a model is developed…
Abstract
Purpose
This is the second paper in a two‐part discussion of the determinants and performance consequences of concurrent engineering (CE) team usage. In this paper, a model is developed outlining the relationship between the extent of CE team usage and three measures of performance, specifically NPD financial performance, NPD development performance, and communication quality.
Design/methodology/approach
To test the model, 2,500 questionnaires were mailed to NPD managers from the machinery, computer product, electrical equipment, and transportation equipment manufacturing industries. Of the 2,500 questionnaires mailed, 189 usable questionnaires were retuned for a usable response rate of 7.5 percent.
Findings
Results of performing partial least squares analysis indicate that the frequency of use of CE teams and functional involvement on CE teams influences communication quality, which in turn, influences both NPD financial and development performance.
Research limitations/implications
To researchers of NPD, the major implication of this study is that it highlights possible reasons (e.g. not considering the extent of usage or not including functional involvement or communication quality in their models) why they are obtaining such inconsistent results when examining the relationship between NPD practices and performance. The major limitation of this study is that only CE teams have been selected for investigation or risk the problems associated with developing a very long questionnaire.
Originality/value
To practicing NPD managers, the value of this research is that it highlights that CE teams which do little to improve communication quality will not lead to improvements in NPD performance.
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Kalluri Vinayak and Rambabu Kodali
The purpose of the study is to study the relation between new product development (NPD) innovation and NPD best practices in an organization with respect to NPD performance in the…
Abstract
Purpose
The purpose of the study is to study the relation between new product development (NPD) innovation and NPD best practices in an organization with respect to NPD performance in the backdrop of Indian manufacturing industry.
Design/methodology/approach
Performance indices are developed based on NPD innovation and NPD best practices in an organization. Based on the developed performance indices, a cluster typology or classification of surveyed organizations is conducted. Different hypotheses are generated and tested to chet1ck the relation between NPD best practices and NPD innovation in an organization with respect to NPD performance in the Indian manufacturing industry.
Findings
The following results were obtained: there is a positive effect on NPD performance for those organizations that strongly implement NPD best practices; the stronger the NPD innovation, the higher the NPD performance; and stronger organizations' ability for NPD innovation has positive relationship with NPD best practices. Hence, it is proven that, “the stronger the NPD innovation in an organization, with defined NPD best practices, the better the NPD performance”.
Originality/value
According to the author’s knowledge, no study is reported in literature which addresses the effect of NPD best practices and NPD innovation in an organization with respect to performance in the Indian manufacturing industry.
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Abdulkareem Awwad and Dr. Mamoun N. Akroush
– The purpose of this paper is to identify the NPD performance success measures that manufacturing organisations use to assess the success of their new products.
Abstract
Purpose
The purpose of this paper is to identify the NPD performance success measures that manufacturing organisations use to assess the success of their new products.
Design/methodology/approach
Based on relevant literature review and in-depth interviews, a structured questionnaire was developed as a primary data collection method. Questionnaires were distributed to a sample of 558 manufacturing organisations in Jordan, out of which 355 were returned and valid for the analysis. Exploratory and confirmatory factor analyses were applied to reveal NPD performance success measures dimensions.
Findings
This study empirically showed that manufacturing organisations in Jordan use a multidimensional construct for NPD performance success measures to assess the success of their new products. The multidimensional construct consists of NPD financial performance, NPD internal learning, NPD capabilities improvement, NPD knowledge sharing and NPD marketing performance. The findings indicate that NPD financial performance is still the dominant dimension amongst the manufacturing organisations while measuring NDP performance. Also, the study has developed an inductive model of NPD performance success measures which shows the construct’s dimensions complexity.
Research limitations/implications
The fact that the paper is a single country study focusing on the manufacturing industry limits its generalisation to other industries/contexts. The paper’s focus on manufacturing organisations limits its contribution to the manufacturing sector. The services sector is a rich field for NPD performance success measures, in addition to being an important contributor to the economy of most, if not all, countries. Further, the paper focuses on only five dimensions of NPD performance success measures, other dimensions of NPD performance success measures might add more insights to their effect on NPD performance success measures.
Practical implications
Utilising the findings of this study can help managers make sense of NPD success and failure and plan the NPD strategy and activities across a range of differing situations. The major contribution of this study is increasing the ability of managers to improve their skills and capabilities and focus on the dimensions of NPD success in the best way that enables them to respond effectively to uncertainty caused by changes in the product life cycle which in turn might affect the performance of NPD. The findings urge managers to deal with NPD as a complex process that should be integrated within corporate, business and functional strategies of the firm.
Originality/value
The originality of this paper stems from its multidimensional construct of NPD performance success measures as well as in developing an inductive model that shows the complexity of NPD performance dimensions that can be used for assessing the success of new products. The study also has its originality since it is the first empirical work conducted on the manufacturing sector in an emerging market business environment, Jordan.
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Mamoun N. Akroush and Abdulkareem Salameh Awwad
The purpose of this paper is to examine new product development (NPD) financial performance enablers through examining the roles of NPD capabilities improvement, NPD knowledge…
Abstract
Purpose
The purpose of this paper is to examine new product development (NPD) financial performance enablers through examining the roles of NPD capabilities improvement, NPD knowledge sharing and NPD internal learning in manufacturing organisations in Jordan.
Design/methodology/approach
Based on relevant literature review on NPD performance, a structured questionnaire was developed to collect data related to NPD performance measures. Questionnaires were distributed to a sample of 558 manufacturing organisations in Jordan, out of which 355 were returned and valid for the analysis. Exploratory and confirmatory factor analyses were applied to reveal NPD performance success dimensions that manufacturing organisations use to assess NPD performance success. Then, path analysis was employed to examine the research model and test its hypotheses.
Findings
The study’s findings reveal that manufacturing organisations use a multidimensional construct for assessing NPD performance success, which consists of NPD financial performance, NPD internal learning, NPD capabilities improvement, NPD knowledge sharing, and NPD marketing performance. NPD capabilities improvement exerted a positive and significant effect on each of NPD internal learning, NPD knowledge sharing, and NPD marketing performance, respectively. NPD knowledge sharing exerted a positive and significant effect on each of NPD internal learning NPD marketing performance. Each of NPD internal learning and NPD marketing performance exerted a positive and significant effect on NPD financial performance. The structural findings also indicate that 38.1 per cent (R2 is 0.381) of NPD financial performance is explained by the path of NPD capabilities improvement, NPD knowledge sharing and NPD marketing performance, which is the strongest path in the empirical model.
Research limitations/implications
The paper’s focus on manufacturing organisations limits its contribution to the manufacturing sector only. The services sector is a rich field for understanding NPD financial performance enablers in various service industries. Further, the paper focusses on only five dimensions of NPD performance success, other dimensions of NPD performance success might add more insights to their effect on NPD performance success measures especially their effect on organisational performance.
Practical implications
The findings of this study provide managers of manufacturing organisations with empirical insights related to the multidimensionality of NPD and their complex relationships to enhance NPD financial performance. The empirical findings assist managers to assess their NPD strategies, processes and implementation based on a results-oriented approach. The major contribution of the study is identifying the strongest paths of NPD financial performance enablers which reveals the complexity and criticality of NPD capabilities improvement, NPD knowledge sharing and NPD marketing performance on NPD financial performance. The rationale is NPD financial performance is still the most important NPD performance success dimension amongst manufacturing organisations.
Originality/value
The originality of this paper stems from developing and testing a multidimensional model of NPD financial performance enablers for the first time in emerging markets, Jordan. NPD financial performance is a function of other areas of NPD performance dimensions, namely; NPD capabilities improvement, NPD knowledge sharing and NPD marketing performance. This empirical evidence is provided to managers for the first time by this study.
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