Information Technology Tools in New Product Development: The Impact of Complementary Resources*,†

Emergent research has examined the antecedents to using information technology (IT) in the new product development (NPD) process and the impact of IT on NPD performance. Based on the resource‐based view (RBV) of the firm, this study hypothesizes that particular resources create IT capabilities that significantly enhance NPD outcomes. More specifically, this research extends previous work by investigating whether three complementary resources, namely an executive champion for IT, global engagement, and organizational innovativeness, influence IT capabilities (IT use frequency and IT replacement frequency), which in turn affect NPD outcomes (NPD task proficiency and NPD performance). To test the conceptual model, survey data were collected from 220 NPD and IT managers in a variety of large Japanese firms. The results show that an executive champion for IT and global engagement are predictors of both IT tool use and replacement frequency while organizational innovativeness contributes only to IT tool replacement frequency. The results also indicate that both IT tool use and replacement frequency have a positive effect on NPD task proficiency, which improves NPD performance. This research contributes to the literature by adding understanding of the role of IT in NPD at the firm level in four ways. First, it examines particular organizational complementary resources and their relationship to IT capabilities. Second, it examines the RBV and IT in the context of NPD, an important business process. Third, it measures IT usage in a more granular fashion (i.e., IT tool use frequency and IT replacement frequency) rather than simply IT usage as a dichotomy. Finally, through testing the proposed model with data collected from Japanese firms, this study provides empirical evidence from an Asian country to answer the call for more NPD research to be conducted in countries other than North American and Western European contexts. The findings of the study also provide implications for managers. Importantly, they indicate that an executive level champion for IT is a key influencer in facilitating IT usage and replacement, and likely can help generate awareness of and support for greater IT investments so the firm can create IT capabilities for effective NPD.     

A Cross‐National Comparative Study of Senior Management Policy,Marketing–Manufacturing Involvement,and Innovation Performance

The marketing–manufacturing interface is important to the success of product development. This research investigates the effect of senior management policies on the effectiveness of the marketing–manufacturing interface. Based on existing literature, a conceptual framework is developed that relates senior management policies, marketing–manufacturing involvement, and new product performance. The proposed framework is contingent on the national culture of the country in which product development occurs. Structural equation modeling is used to test the framework with data from a sample of 146 U.S. marketing managers and 185 Japanese marketing managers. The results suggest that a number of senior management policies are effective in promoting joint involvement between the marketing and manufacturing functions during the innovation process. While the use of formal cross‐functional integration policies was found to promote marketing–manufacturing involvement both in the United States and Japan, team leader autonomy, team rewards, and job rotation were found to promote marketing involvement in the United States but not in Japan. On the other hand, promoting marketing–manufacturing involvement via goal clarity and promotion of teamwork proved to be effective in Japan. The results have a number of implications for product development practice. Foremost among these is the finding that, despite the fundamental ideological differences separating the marketing and manufacturing functions, senior management policies can enhance the level of marketing–manufacturing involvement, and consequently can improve the likelihood of new product success. The second implication is that the effectiveness of specific senior management policies depends on national culture. Thus, managers wishing to improve the marketing–manufacturing interface should select the policies that match the culture in which the product development project is located.     

Market competition,differences in technology,and productivity improvement: An empirical analysis based on Japanese manufacturing firm data

In this paper we examine empirically the effect of market competition on firm productivity improvements using data drawn from the Japanese manufacturing sector. We find that a non-linear relationship between competition and productivity growth induced by R&D activity as suggested by Aghion et al. (2005) holds for Japanese manufacturing firms. We also show that greater market competition widens technology differences across firms, and firms facing more intense competition are more productive than other firms. Our empirical results imply that productivity improvement through R&D activity depends on not only a competitive environment but also technological differences between firms.     

Why Nations Become Wealthy: The Effects of Adult Longevity on Saving

We analyze steady state and out-of-steady-state effects of the transition in adult longevity on the national saving rate using historical data and international panel data. The rise in adult life expectancy has a large and statistically significant effect on aggregate saving. The effects have been especially pronounced in East Asia because its mortality transition was very rapid. Gains in life expectancy are much more important than declines in child dependency. Population aging may not lead to lower saving rates in the future if life expectancy and the duration of retirement continue to increase.     

Foreign and domestic R&D investment

A considerable share of R&D investment is due to multinational firms that simultaneously operate R&D bases at home and abroad. We develop a simple model of foreign and domestic R&D investment and test the model's predictions on a sample of 146 Japanese multinational firms’ R&D investments in Japan and the United States in 1996. The empirical results confirm that the foreign to domestic R&D ratio depends on relative technological opportunities and relative demand conditions, with foreign research expenditures responding to technological opportunity and foreign development expenditures responding to demand.     

Part-time workers doing full-time work in Japan

This paper is concerned with the phenomenon of part-time workers performing similar types of jobs to full-time workers in the same workplace. We use data from Japan's Survey on Diversified Types of Employment to answer two questions. First, why are firms increasingly employing part-time workers in jobs traditionally offered to full-time workers? Second, what are the characteristics of the workers taking these jobs? As for the former, it is primarily service sector firms using this new work relationship. Interestingly, there is evidence that manufacturing firms are outsourcing in lieu of hiring domestic part-time workers. On a positive note, we find evidence that part-time workers are screened by firms for full-time jobs. As to the second question, the workers are primarily professionals working long hours. As an aside, based on our data we find no evidence that part-time workers are more likely to be involuntarily employed in full-time jobs than in non full-time jobs. J. Japanese Int. Economies 21 (4) (2007) 435–454.     

Personal Word of Mouth,Virtual Word of Mouth,and Innovation Use

The authors examine the impact of word‐of‐mouth communication on innovation use. Hypotheses are developed linking both personal and virtual word of mouth (vWOM) directly to innovation use. The authors also examine the mediating role of two additional variables that link word of mouth and innovation use. Existing research suggests that personal word of mouth (pWOM) indirectly influences intensity of innovation use through its impact on consumer perceptions of the size of local adopter population. In addition, both personal and virtual word‐of‐mouth influence should be positively associated with consumer perceptions of the availability of complementary products, which prior studies have linked to variety of innovation use. The authors test these hypotheses using data collected from 247 Japanese adopters of new‐generation portable gaming devices. Findings indicate that both personal and virtual word of mouth are directly related with variety of innovation use, which is in turn related with intensity of use. In addition, pWOM is positively related with both intensity of use and variety of use through its impact on consumer perceptions of (1) the perceived size of the local adopter population and (2) the availability of complementary products. In contrast, through these same two paths, vWOM is negatively related with both intensity of use and variety of use.     

Modes of Commuting in Mumbai: A Discrete Choice Analysis

Using a nested multinomial logit model (NMNL), this paper estimates the choice probabilities and demand elasticities of various modal alternatives for Mumbai using 1990 trip origination and destination data. The results indicate that with an increase in the cost of private transit system, market share is reduced. The result of this experiment is highly elastic private commuting mode demand. In addition, reduction in the market share of own vehicles is larger than that of hired vehicles. The increase in the cost of mass transit system reduces its share but is inelastic. Decrease in the market share of one mode is accompanied by increase in the market share of others. Income has a positive effect on the market share of private transit modes, particularly on the own vehicles' share. Other explanatory variables such as distance have a negative effect on mass transit system and duration has a negative elasticity for all modes of transportation.     

Virtual Word of Mouth and Willingness to Pay for Consumer Electronic Innovations

The authors examine the impact of virtual word‐of‐mouth (vWOM) communication on willingness to pay (WTP) for an innovation. A series of hypotheses are developed that link vWOM to the credibility of innovation information, perceived utilitarian value, and the perceived hedonic value of an innovation, which are in turn hypothesized to influence WTP. The authors test these hypotheses using data collected in Japan from 658 potential adopters of e‐readers and from 565 potential adopters of smartphones. Findings indicate that, in both samples, vWOM is positively correlated with the perceived credibility of innovation information, which in turn is positively correlated with both perceived utilitarian value and perceived hedonic value. WTP is also positively correlated with an innovation's perceived utilitarian and perceived hedonic value. In addition, the path between vWOM and perceived hedonic value is positive and significant in both samples. However, the path between vWOM and perceived utilitarian value is positive and significant in the smartphone sample, but not in the e‐reader sample. The empirical findings provide support for theoretical arguments that link WTP for complex consumer electronic products to consumer perceptions of utilitarian and hedonic value. The results also have important implications for the creation of vWOM strategies designed to reduce the price sensitivity of potential adopters.