Performance of Global New Product Development Programs: A Resource‐Based View

Abstract

Gaining a competitive edge in today's turbulent business environment calls for a commitment by firms to two highly interrelated strategies: globalization and new product development (NPD). Although much research has focused on how companies achieve NPD success, little of this deals with NPD in the global setting. The authors use resource-based theory (RBT)-a model emphasizing the resources and capabilities of the firm as primary determinants of competitive advantage-to explain how companies involved in international NPD realize superior performance. The capabilities RBT model is used to test how firms achieve superior performance by deploying organizational capabilities to take advantage of key organizational resources relevant for developing new products for global markets. Specifically, the study evaluates (1) organizational NPD resources (i.e., the firm's global innovation culture, attitude to resource commitment, top-management involvement, and NPD process formality); (2) NPD process capabilities or routines for identifying and exploiting new product opportunities (i.e., global knowledge integration, NPD homework activities, and launch preparation); and (3) global NPD program performance. Based on data from 387 global NPD programs (North America and Europe, business-to-business), a structural model testing for the hypothesized mediation effects of NPD process capabilities on organizational NPD resources was largely supported. The findings indicate that all four resources considered relevant for effective deployment of global NPD process capabilities play a significant role. Specifically, a positive attitude toward resource commitment as well as NPD process formality is essential for the effective deployment of the three NPD process routines linked to achieving superior global NPD program performance; a strong global innovation culture is needed for ensuring effective global knowledge integration; and top-management involvement plays a key role in deploying both knowledge integration and launch preparation. Of the three NPD process capabilities, global knowledge integration is the most important, whereas homework and launch preparation also play a significant role in bringing about global NPD program success. Tests for partial mediation suggest that too much process formality may be negative and that top-management involvement requires careful focus.

Product Life‐Cycle Management and Distributor Contribution to New Product Development

“…The typology and its analysis ares based on three conceptual themes: organization information processing (OIP), dynamic capabilities ii and task complexity. According to OIP and dynamic capabilities theories, knowledge and information processing are among the key mechanisms by which firms make sense of their environment and adapt their processes accordingly (Kleinschmidt, de Brentani and Salomo, 2007;Teece et al, 1997). This is consistent with the primacy of information in NPD as an element underlying all innovation activity Zahay et al, 2011), and in Product Lifecycle Management and Distributor Contribution to NPD 3 channels as an essential for achieving effective working relationships among channel members (Anderson and Narus, 1990;Coughlan et al, 2006).…”

“…In sum, the potential for distributors to generate product-related information relevant for NPD has been largely neglected in the extant literature on PLM. To expand on the view of distributors as simple ‗problem informers', it is proposed that enhanced contributions to NPD during PLM are made when distributors deploy specific capabilities by which to combine relevant information and to manage inter-organizational relationships (Kleinschmidt et al, 2007;Lorenzoni and Lipparini, 1999). To this end, resource-based/dynamic capabilities theory provides the theoretical foundation to further qualify distributors' information processing activities during PLM.…”

NuServ modelio taikymas inovatyvios paslaugos plėtros procese

“…Atliktų išsamių empirinių tyrimų rezultatai padėjo identifikuoti produkto ar paslaugos inovacijų sėkmę lemiančius veiksnius (Brown, 1998;Heunks, 1998;Holger, 2002;Kleinschmidt, Brentani, Salomo, 2007;Cooper, 2008Cooper, , 2012Zavadskas, 2008;Gammoh, Voss, Skiver, 2011;Strazdas, 2011;ir kt.). Apibendrinus atliktų tyrimų rezultatus, iš esmės galima identifikuoti tuos pačius faktorius, kurie lemia sėkmingą inovatyvios konkurencingos paslaugos ar prekės ekspansiją rinkoje.…”

A methodology for assessing the effect of portfolio management on NPD performance based on Bayesian network scenarios

“…In turbulent and diverse market environments, new product development (NPD) has been playing a primary role in achieving sustainable competitive advantages (Kleinschmidt, De Brentani, & Salomo, 2007).…”