Decomposing the Effect of Information Technology Tools on New Product Quality and New Product Market Performance: A Phase-Based Analysis

Author(s):  
Serdar S. Durmuşoğlu ◽  
Gloria Barczak ◽  
Fareena Sultan
2020 ◽  
pp. 234094442091630 ◽  
Author(s):  
María Pemartín ◽  
Ana I Rodríguez-Escudero

New product development (NPD) collaborations with external partners involve high coordination costs and run substantial risks. Formalization seems to be an effective mechanism to mitigate said costs and risks, although the issue of whether formalization actually proves productive or counterproductive remains an open question. This study empirically analyses the direct impact of formalization and the interaction effect between formalization and trust between partners in order to gauge their influence on NPD collaboration performance. Findings indicate that formalization directly boosts the quality and novelty of the new product developed in collaboration, but that it does not affect adherence to schedule. In addition, trust reinforces the productive effect of formalization on new product quality and novelty, and makes the impact of formalization on adherence to schedule positive. However, without trust, we find a null impact of formalization on new product quality and a counterproductive impact on adherence to schedule. These results suggest that formalization and trust may complement each other, reinforcing each other’s positive effect on new product quality and novelty and presenting a positive synergistic effect, while helping to overcome the counterproductive effect of formalization on adherence to schedule. JEL CLASSIFICATION: O32


2005 ◽  
Vol 13 (3) ◽  
pp. 54-78 ◽  
Author(s):  
Janet Y. Murray ◽  
Mike C.H. Chao

Rapid new product developments (NPDs) have drastically changed the competitive landscape in the global economy. Because the time-to-market dimension of product introduction has become a crucial determinant of multinational corporations’ (MNCs’) competitive advantage, the ability of MNCs to exploit their knowledge globally across subsidiaries using cross-teams has become an important source of competitive advantage. Recognizing the crucial role of MNCs’ knowledge management in NPD, the authors develop a conceptual framework to investigate the antecedents and outcomes of international knowledge acquisition at the cross-team level. The framework suggests that though it is important to acquire necessary knowledge resources for NPD, managers must nurture an NPD project team's realized absorptive capacity to transform the acquired knowledge resources into NPD capabilities, which in turn affect new product market performance.


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