The effect of NPD complexity on NPD performance via inter-organizational collaboration and conflict

Abstract

PurposeThis study develops a conceptualization of NPD (new product development) complexity and explores how inter-organizational collaboration and conflict influence NPD performance.Design/methodology/approachAn empirical examination tests the proposed relationships in the context of Korean manufacturing firms, which currently engage in NPD projects with their key partners. Structural equation modeling (SEM) was used to examine the hypotheses.FindingsThe findings suggest that a higher level of NPD complexity simultaneously calls for inter-organizational collaboration and conflict, and these two factors influence NPD performance in a conflicting manner: inter-organizational collaboration serves as a driver, and inter-organizational conflict acts as a barrier against NPD performance.Originality/valueThis study provides answers to the academic and practical calls by providing how NPD complexity should be managed in a way to increase NPD performance. This study provides insight into how manufacturing firms form inter-organizational collaboration practices and why they need to mitigate inter-organizational conflict.

Strategic governance dynamics in manufacturing firms: navigating operational performance through contractual and relational mechanisms in the face of product complexity

“…The presence of high product complexity leads to equivocality, giving rise to multiple and conflicting interpretations about task situations (Koufteros et al ., 2002). Developing complex products requires manufacturing firms to integrate internal and external information and capabilities to meet customer needs (Zhao et al ., 2011; Um, 2023). As product complexity increases, the task environment becomes more uncertain, requiring additional time and effort as firms and their suppliers consider more variables, discuss potential technical problems, and make more decisions (Kang and Um, 2023).…”

“…In the past 2 decades, the governance of supply chain relationships has risen to prominence as a widely explored subject in the domain of manufacturing (Um andOh, 2020, 2021;Chen et al, 2013), as evidenced by extensive academic literature (Chen et al, 2013;Cheng and Sheu, 2012;Kang et al, 2022;Melander and Lakemond, 2015;Um and Kim, 2019;Zhao et al, 2011;Zhou et al, 2023). Leading global enterprises, exemplified by industry giants like P&G and Wal-Mart, have adeptly employed their key supplier relationships to secure and sustain a competitive advantage (Li et al, 2023).…”