A Systemic Approach to the Product Life Cycle for the Product Development Process in Agriculture

Abstract

For a long time, a company’s Product Development Process (PDP) was seen as supporting the operations department, although PDP decisions and mistakes have a considerable impact on market performance. This is critical even in agriculture where bad habits and practices in the PDP can lead rural producers to great losses. Therefore, this research investigates the effect of the PDP on the market performance of rural products (bananas) in the southern region of Brazil, based on two analyses: (i) how sustainability practices support the PDP phases and (ii) how the phases of the Product Life Cycle Assessment (LCA) mediate sustainability practices and PDP phases. This study presents a quantitative analysis using Confirmatory Factor Analysis (CFA) and hierarchical ordinary least squares (OLS) regression of data obtained from a survey of 110 rural producers who directly participate in the banana production and planning process in southern Brazil. Our results show that sustainability practices support the PDP, and we confirm that the product development and post-development phase has an effect on market performance. In addition, we identify that in the pre-development phase of the PDP, dealing with rural products (bananas), the maturity stage of the LCA mediates sustainability. In the PDP development phase, we conclude that rural families who develop economic and environmental practices with their products, which are in the market growth phase may have reduced results. As for the post-development phase of the PDP, we conclude that when companies invest in environmental and social practices, there is a complete mediation of the effect, where these practices lose strength if the product is in the introductory and maturity phases in the market. In an original matter, our study contributes to demonstrating the value of the product life cycle for the Product Development Process in agriculture using sustainability practices through a systemic approach, filling the gap in the literature due to a lack of integrated research on these areas seen.