Identifying the moderating influences of external environments on new product development process

Few studies have attempted to investigate the following: (1) whether the firm's core capabilities or resources and routines (e.g., integration among functions) for product development, in the presence of environmental dynamics, become incumbent inertia or core rigidities? and (2) how environmental dynamics affect the influence of a project team's implementation capabilities in the new product development (NPD) process on new product launch performance? This study approaches these questions by addressing the three most indispensable NPD process components (i.e., marketing, technology, and organization) and incorporating new moderators, namely pace of technological change and competitive intensity, within a single study. It specifically examines the extent to which the latter two external environmental variables moderate the impact of NPD practices on new product launch outcome. Data obtained from a survey of NPD projects developed and launched by Korean manufacturers suggest that environmental dynamics would reduce the contribution of functional-specific sources of advantage (resources) and project-specific sources of advantage (e.g., integration among functions) to organizational implementation capabilities (i.e., a project team's proficiency in executing NPD activities). Moreover, the research also shows that market dynamics may increase the contribution of organizational implementation capabilities to NPD project performance.     

An institutional perspective of public policy and network effects in the renewable energy industry: enablers or disablers of entrepreneurial behaviour and innovation?

This study extends theory on the effects of public policies stimulating technology demand and of industry network ties on firm-level entrepreneurial behaviour. We take an institutional perspective to develop a theoretical model examining the mechanisms through which public policies, regulatory uncertainty, and industry network ties affect firm-level entrepreneurial decision-making processes and the ability to introduce highly innovative products and to sustain superior performance. We focus on firm-level effects, which enables the study of the tension between institutional pressures of homogeneity and competitive pressures of heterogeneity for entrepreneurial decision-making processes in environments characterized by policy-induced market demands. To test our hypotheses, we draw on data from a large-scale survey among German renewable energy firms. Our results show that public policies can constrain firm innovativeness and risk-taking behaviour because they steer firms towards a more conservative attitude and discourage the pursuit of high-risk innovation projects. However, firms can counteract these influences and enhance their innovativeness by maintaining close network ties with research associations as we find that innovativeness and a highly innovative product portfolio are key success factors. In summary, these findings provide important implications for the study of public policy effects, industry network ties and entrepreneurial behaviour.     

Improving sourcing decisions in NPD projects: Monetary quantification of points of difference

During new product development (NPD), firms make critical design and sourcing decisions that determine the new product's cost, performance, competitive position, and profitability. The purchase price of materials and components for the new product provides only part of the picture for design and sourcing decisions. All-encompassing analyses of cost and performance, such as total cost of ownership, are extraordinarily difficult to implement because they are demanding in terms of time, data and cooperation. We study monetary quantification of points of difference, which enables an NPD team to base its decisions instead on more focused, strategically-pertinent analyses of costs and performance. We propose a substantive model of its antecedents and consequences. We then test this model with data from matched samples of 144 project leaders and 144 cost analysts who participated in the same NPD projects. Using structural equation modeling, we also test hypothesized differences in perspectives between project leaders and cost analysts. Results demonstrate the pivotal role of monetary quantification of points of difference among the sourcing alternatives being considered, especially for cost analysts. Results also demonstrate that Decision Justification to senior management drives the NPD team's decision-making process. Finally, monetary quantification of points of difference leads to Uncertainty Reduction, which is found to be the primary antecedent of the judged success of applying analysis of cost and performance.     

The role of human capital philosophy in promoting firm innovativeness and performance: test of a causal model

In the present study, we developed and tested a causal model of the relationships between firm strategy, industry environment, human capital philosophy, innovativeness, and firm performance. Our results indicate that a differentiation-oriented strategy influences the relative use of an empowerment-oriented human capital philosophy of the firm, moderated by a firm's industry environment. Moreover, firms' human capital philosophies moderated the relationship between strategy and firm innovativeness. We also found support for the proposition that innovativeness mediated the relationship between human capital philosophy and firm performance. In addition, results also indicate that industry dynamism influences new product sales directly and industry survival difficulty moderates the relationship between firm strategy and new product sales. Survival difficulty also had a negative effect on firm profit. Overall, we found support for the mediating roles of human capital philosophy and innovativeness in the relationships between firm strategy, industry environment and firm performance. Implications are discussed.     

The impact of technological learning on NPD outcomes: The moderating effect of project complexity

The innovative status of an emerging market is largely attributed to the technological learning maturity of its finest multinational companies (MNCs). This study uses the information processing perspective to investigate the impact of inter-/intra-functional technological learning (knowledge acquisition, information distribution, information interpretation and organizational memory) of 105 project teams on new product development (NPD) outcomes (project success, development speed and product entry timeliness) across nine MNCs. Of the four technological learning dimensions, only organizational memory did not possess a direct relationship with any NPD outcome dimensions. This study further contrasts the above impact across varying levels of project complexity. Information interpretation and organizational memory contribute to project success for low complexity projects. Conversely, for high complexity projects, development speed is contingent on organizational memory.     

Analysis of the effect of risk management practices on the performance of new product development programs

Risk management is receiving much attention, as it is seen as a method to improve cost, schedule, and technical performance of new product development programs. However, there is a lack of empirical research that investigates the effective integration of specific risk management practices proposed by various standards with new product development programs and their association with various dimensions of risk management success. Based on a survey of 291 product development programs, this paper investigates the association of risk management practices with five categories of product development program performance: (A) Quality Decision Making; (B) High Program Stability; (C) Open, problem solving organization; (D) Overall new product development project success; and (E) overall product success. The results show that six categories of risk management practices are most effective: (1) Develop risk management skills and resources; (2) Tailor risk management to and integrate it with new product development; (3) Quantify impacts of risks on your main objectives; (4) Support all critical decisions with risk management results; (5) Monitor and review your risks, risk mitigation actions, and risk management process; and (6) Create transparency regarding new product development risks. The data shows that the risk management practices are directly associated with outcome measures in the first three categories (improved decision making, program stability and problem solving). There is also evidence that the risk management practices indirectly associate with the remaining two categories of outcome measures (project and product success). Additional research is needed to describe the exact mechanisms through which risk management practices influence NPD program success.     

The impact of government financial support on the performance of new firms: the role of competitive advantage as an intermediate outcome

This research examines the influence of government financial support on new firms' performance. Extant empirical research on the topic has found mixed results, which warrants an exploration of the theoretical basis for the impact of support policies on new firms' performance. Grounding the theoretical model in the resource-based view and institutional theories, this study contends that performance outcomes – e.g. revenues or profits – should not be the first outcomes of public policies to be examined. Instead, competitive advantage formation is suggested as a link between support policies and new firms' performance. Using new firms from the USA, we examine the impact of government financial support measures – government loans, guarantees and government equity – on firms' overall competitive advantage and more specific types of competitive advantage based on innovation, licensing-in, marketing and human capital. Controlling for family funding, bank financing, equity of business angels and venture capitalists, industry, size as well as entrepreneur's characteristics, the results reveal that government guarantees and government equity have a direct effect on new firms' competitive advantage and only an indirect impact on performance. Our results suggest to policy-makers to focus on helping new firms build the necessary capabilities to compete successfully in the marketplace.     

On the R&D/marketing interface in knowledge intensive entrepreneurial firms

In this paper we focus on the performance impact associated with whether R&D or marketing takes the lead in product innovations and/or product development. We examine empirically the performance of a sample of entrepreneurial firms across 10 European Union countries for which we can identify alternative regimes in which R&D, or in which marketing, is viewed as being relatively more important in creating and sustaining the firm’s competitive advantage. We find that when R&D is the dominant strategy, firms realize greater growth in sales, other factors held constant.     

Does intellectual capital matter? Assessing the profitability and marketability of IC design companies

Under a highly competitive market and a dynamic industrial environment, how to evaluate and enhance an integrated circuit (IC) design company??s good performance is important. This paper develops a two-stage data envelopment analysis (DEA) combined intellectual capital theory through financial and non-financial data to evaluate a performance process on the IC design company. It adopts a new slacks-based measure (SBM) to obtain a more accurate performance estimation and rank between companies. This paper further uses the Simar and Wilson procedure with a truncated regression to explore the impact of intellectual capital variables on performance and competitive advantage. From the study we suggest to the company in how to enhance precisely its performance to create company value and success.     

The generality/specificity issue in consumer innovativeness research

The purpose of the present study was to explore the role of personality in shaping consumer innovativeness by testing a model of the hierarchical relationships between a global (broad or abstract) personality trait, its domain-specific manifestation in a consumer context, and overt consumer behavior. A survey of 465 adult consumers measured global innovativeness, domain-specific innovativeness for two product categories (clothing and electronics) and self-reported purchase of new clothing and electronic items. Three hypotheses were tested. First, global innovativeness is more highly correlated with domain-specific innovativeness than it is with the purchase of new items. Second, domain-specific innovativeness is more highly correlated with the purchase of new items than is global innovativeness. Finally, the association between global innovativeness and new product purchase is mediated by domain-specific innovativeness. All three hypotheses were supported for both product categories.     

Team leader experience in improvement teams: A social networks perspective

In this research, we disentangle the relationship between several key aspects of a team leader's experience and the likelihood of improvement project success. Using the lens of socio-technical systems, we argue that the effect of team leader experience derives from the social system as well as the technical system. The aspects of team leader experience we examine include team leader social capital (a part of the social system) and team leader experience leading projects of the same type (a part of the technical system).We examine four different, yet related, dimensions of a team leader's social capital, which we motivate based on the social networks literature. One dimension, team leader familiarity, suggests that social capital is created when team leaders have experience working with current team members on prior improvement projects, and that such social capital increases the likelihood of improvement project success. We develop three additional dimensions, using social network analysis (SNA), to capture the idea that the improvement team leader's social capital extends beyond the current team to include everyone the leader has previously worked with on improvement projects. Contrasting our SNA-based dimensions with team leader familiarity enables us to better understand the impact of a team leader's social capital both inside and beyond the team. We also examine the effect of a team leader's experience leading prior projects of the same type, and consider the extent to which organizational experience may moderate the impact of both team leader social capital and same-type project experience.Based on analysis of archival data of six sigma projects spanning six years from a Fortune 500 consumer products manufacturer, we find that two of our SNA-based dimensions of team leader social capital, as well as experience leading projects of the same type, increase the likelihood of project success. In addition, we show that organizational experience moderates the relationship between team leader same-type project experience and project success. However, this is not the case for the relationship between the dimensions of team leader social capital and project success. These results provide insights regarding how dimensions of team leader experience and organizational experience collectively impact the operational performance of improvement teams.     

Time-based Experience and International Expansion: The Case of an Emerging Economy

Building on the organizational learning theory and international expansion process model, this paper examines the effect of time-based experience on multidimensional performance including return on equity, sales growth, competitive position, and asset efficiency of foreign-invested enterprises (FIEs) in an emerging economy (the People's Republic of China). The analysis, based on a recent survey of FIEs in China, demonstrates that time-based experience has a significantly positive effect on overall and individual dimensions of performance of FIEs. The underlying link between time-based experience and multidimensional performance is, however, moderated by the cultural distance between the host and home countries. Moreover, time-based experience moderates the positive impact of resource contributions, market commitment, and strategic innovativeness on venture performance.     

IDENTIFYING FACTORS WHICH INFLUENCE PRODUCT INNOVATION: A CASE STUDY APPROACH

This article provides an analysis of factors affecting the level of product innovation in a small enterprise setting. The perspective chosen considers the interaction of management and environmental factors and its impact on product innovation and explores how these factors interrelate to influence small business success (growth). A causal multi-site model is developed which will assist in identifying product innovation determinants for high-growth and low-growth firms. Moreover, direct and secondary explanations of product innovations will be isolated. Twelve case studies will be examined. The conclusions are that, for high-growth firms, determinants of product innovation that influenced small-business success (growth) were technology, competitive edge, research and development, product life-cycle, market change, product/market mix and customer base. For low-growth firms, customer base was a major determinant of product innovation which influenced small-business success (growth).     

New product development projects: The effects of organizational culture

Despite the increasing use of project management within organizations, an attendant poor rate of success among these projects has been observed (Clancy & Stone, 2005; Ives, 2005). Seventy‐five percent of all business transformation projects fail (Collyer, 2000) and only 16% of U.S. IT projects are completed on time and on budget (Peled, 2000). In an attempt to overcome such a high project failure rate, this paper investigates the effects of organizational culture on the performance of particular types of projects: new product development (NPD) projects. Using data from 95 U.S. organizations, the study provides evidence of the significant effects of organizational culture on NPD projects.     

Radical innovations in new product development and their financial performance implications: An event study of US manufacturing firms

At the dawn of the 21st century, global competition continues to increase at an accelerating rate and radical innovation is recognized as a potent weapon for firms to achieve sustainable competitive advantages. Academics, practitioners and consultants share the view that radical innovation is important to the long-term financial success of firms. Nevertheless, empirical studies on the relationship between radical innovation and firm performance have been dominated by survey research, which provided little concrete evidence on the financial impact of radical innovation. In this study we traced the financial performance of publicly traded manufacturing firms in the United States that introduced radical innovations over the period 1986-2000 and examined whether radical innovation could lead to superior financial performance in these firms. We employed the event-study method, matching each sample firm with a control group of firms in the same industry with similar pre-event performance and firm size. Our results show that while radical innovation helps firms maintain sales growth and return on sales (ROS), firm profitability in terms of return on assets (ROA) is not significantly improved. In fact, manufacturers suffer from a decline in profitability upon the introduction of radical innovations in new product development.     

基于协同理论的电子政务及其绩效评价研究

我国的电子政务建设正进入一个高速发展的时期,其协同发展与相应的绩效评价问题也引起政府部门和学者的重视。但是现有电子政务系统及其评价存在种种问题,实施电子政务项目的目标应做到各主体间相互协同,且整个建设过程也是各主体对电子政务信息资源共建共享的过程。因此,从电子政务建设项目协同分析出发能够对整个项目进行全面评价。本论文以基于协同理论的电子政务及其绩效评价研究为题,着重分析了电子政务协同的理论基础,电子政务协同的各模式以及基于整合型电子政务的绩效评价,并总结出了相关的政策意义。     

Efficiency meets accountability: Performance implications of supply chain configuration, control, and capabilities

The public increasingly holds firms accountable for social and environmental outcomes, such as product toxicity problems and human rights violations, throughout their global supply chains. How can companies improve the social and environmental performance within their supply chains, particularly as other competitive pressures, such as cost and quality, continue to escalate? Starting from an efficient versus responsive supply chain framework, we develop an integrative model that blends together elements of supply chain configuration, stakeholder management, and capability development. Specifically, we spotlight the dimensions of control and accountability that collectively determine stakeholder exposure, and show how this new construct affects the linkages between supply chain capabilities, configuration, and performance. In particular, this analysis reveals that the nature of stakeholder exposure determines how social/environmental technical and relational capabilities impact social and environmental outcomes. We conclude with implications for research and practice, discussing how current supply chain theories must be extended to incorporate external stakeholders, to clarify strategies and identify potential pitfalls, and to better predict performance outcomes.     

Management practices and strategies to accelerate the innovation cycle in the biotechnology industry

This paper examines management practices and strategies that are critical to successful commercialisation in the biomedical sector and how these practices and strategies impact upon performance innovation. The paper also details emerging issues and challenges for the biotechnology industry including human resource issues, access to venture capital, the development of basic business capabilities, and efficient and stable supply chain linkages.The research findings are based on data obtained from an action research methodology where 14 representatives of the biomedical sector were active participants. The qualitative data was analysed using a multiple cross-case analysis technique that explores the underpinning determinants of performance innovation in the industry. The research study identifies high-performance work practices and critical success factors to accelerate the ‘Innovation Cycle’ from idea to market. The paper concludes that managers in the biomedical industry need to acquire new business acumen skills to maintain a competitive advantage in a fiercely competitive global market. Organisations are recognising that knowledge workers with the requisite skills and expertise are critical to improving innovation performance.     

Environmental performance and competitive advantage in Canada's paper industry

A new environmental performance model is developed, explained and subsequently applied to a study of the Canadian recycled paper industry. The strategic position of the industry is explored as it takes the progressive steps needed to improve its environmental performance and competitive advantage in response to this rising regulatory agenda. Three policy options facing the Canadian pulp and paper industry are examined: the status quo, process technology innovation and product development. The strategic position of the industry is also examined using measurement of stance, attitude, government response, values, planning horizon and environmental integration. The supplier-consumer relationship, capital-technology and locational factors are also used to further discuss the links between competitive advantage and environmental performance. From this discussion, conclusions are drawn on competitive environmentalism: ethics and profit are compatible; newsprint mills must improve their locational, technology and market actions; the industry must proactively seek out environmental market and stakeholder opportunities and; further management research is needed to demonstrate the links between environmental performance, innovation and competitiveness.     

Innovativeness and organizational innovation in total quality oriented firms: The moderating role of market turbulence

This paper analyses the contribution of TQM implementation to the firms’ innovative culture and their overall innovation effort in the technical and administrative organizational domains. The research seeks to contribute to a further understanding, under different market turbulence conditions, of the TQM–innovation relationship and the interactions between the organization's innovativeness and the intensity and newness of the innovations adopted. The findings indicate that TQM strongly influences firm's innovative culture and higher administrative innovation levels with a greater degree of incorporated novelty, whereas the mediating role of innovativeness is required for TQM to achieve this impact on technical innovation. These relationships significantly vary under different levels of market turbulence, but results reinforce the consideration of TQM as an appropriate resource to foster innovativeness and organizational innovation. The study provides an unexpected result as innovativeness does not influence administrative innovations, which seem to be ultimately determined by TQM. Finally, the findings provide empirical support regarding the coordinated development in practice of technical and administrative innovations.