New product quality: intended and unintended consequences of new product development speed

2004 ◽  
Vol 57 (11) ◽  
pp. 1258-1264 ◽  
Author(s):  
Bryan A. Lukas ◽  
Ajay Menon
Keyword(s):  
Product Development ◽  
Product Quality ◽  
New Product Development ◽  
New Product ◽  
Unintended Consequences ◽  
New Product Quality

The Differential Impact of New Product Development “Make/Buy” Choices on Immediate and Future Product Quality: Insights from the Automobile Industry

2017 ◽  
Vol 81 (6) ◽  
pp. 1-23 ◽  
Author(s):  
Kartik Kalaignanam ◽  
Tarun Kushwaha ◽  
Tracey A. Swartz
Keyword(s):  
Product Development ◽  
Product Quality ◽  
New Product Development ◽  
Automobile Industry ◽  
Positive Impact ◽  
New Product ◽  
The United States ◽  
Trade Offs ◽  
Using Data ◽  
The Impact

This article examines the impact of new product development (NPD) “make/buy” choices on product quality using data from the automobile industry. Although the business press has lamented that NPD outsourcing compromises product quality, there is no systematic evidence to support or refute this assertion. Against this backdrop, this study tests a contingency model of the impact of NPD make/buy decisions on immediate and future product quality. The hypotheses are tested using data on NPD make/buy choices of 173 models of 12 automobile firms in the United States between 2007 and 2014. The authors find that whereas NPD buy has a more positive impact on immediate product quality, NPD make has a more positive impact on future product quality. Furthermore, the immediate product quality impact of NPD buy is stronger when (1) technologies are more complex and (2) firm NPD capability is higher. In contrast, the future product quality impact of NPD make is stronger when (1) there is postlaunch adverse feedback and (2) firm NPD capability is higher. The study highlights the complex trade-offs associated with NPD make/buy decisions and offers valuable insights on how firms could manage these decisions.

scholarly journals Is the formalization of NPD collaboration productive or counterproductive? Contingent effects of trust between partners

2020 ◽  
pp. 234094442091630 ◽  
Author(s):  
María Pemartín ◽  
Ana I Rodríguez-Escudero
Keyword(s):  
Product Quality ◽  
New Product Development ◽  
New Product ◽  
Jel Classification ◽  
Coordination Costs ◽  
Open Question ◽  
The Impact ◽  
Positive Effect ◽  
High Coordination ◽  
New Product Quality

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

NEW PRODUCT DEVELOPMENT WITHIN SMALL AND MEDIUM-SIZED ENTERPRISES: ANALYSIS THROUGH TECHNOLOGY MANAGEMENT MAPS

2006 ◽  
Vol 03 (03) ◽  
pp. 283-302 ◽  
Author(s):  
HUW MILLWARD ◽  
CHRIS BYRNE ◽  
ANDREW WALTERS ◽  
ALAN LEWIS
Keyword(s):  
Product Development ◽  
Technology Management ◽  
Product Quality ◽  
New Product Development ◽  
New Product ◽  
Knowledge Resources ◽  
A Company

Technology management maps have been developed to evaluate new product development (NPD) within small and medium-sized enterprises (SMEs). These maps provide a graphical 'footprint' of a company in terms of knowledge, resources, quality, and innovation & change. A series of 15 case-study companies highlight that the shape and extent of the technology management maps correlate well with the overall impact of the NPD activities. Implementation of an effective NPD process is the main distinguishing factor between the best- and worst-performing companies. The inherent benefits of design-led technology are also encapsulated, specifically in the areas of resource savings and improved product quality.

New Product Quality and Product Development Teams

2000 ◽  
Vol 64 (2) ◽  
pp. 1-14 ◽  
Author(s):  
Rajesh Sethi
Keyword(s):  
Product Development ◽  
Product Quality ◽  
Functional Diversity ◽  
Information Integration ◽  
Development Process ◽  
Time Pressure ◽  
New Product ◽  
Product Development Process ◽  
Major Influence ◽  
New Product Quality

New product quality has been found to have a major influence on the market success and profitability of a new product. Firms are increasingly using cross-functional teams for product development in hopes of improving product quality, yet researchers know little about how such teams affect quality. The author proposes and tests a series of hypotheses regarding how new product quality is affected by team characteristics (functional diversity and information integration) and contextual influences (time pressure, product innovativeness from the firm's perspective, customers’ influence on the product development process, and quality orientation in the firm). The findings reveal that quality is positively related to information integration in the team, customers’ influence on the product development process, and quality orientation in the firm. New product quality is negatively influenced by the innovativeness of the new product from the firm's perspective. However, information integration mitigates the negative effect of innovativeness on quality. Quality orientation weakens the relationship between information integration and quality. Time pressure and functional diversity do not have any effect on product quality.

scholarly journals Supply Chain Contracts under New Product Development Uncertainty

2019 ◽  
Vol 11 (23) ◽  
pp. 6858
Author(s):  
Hong ◽  
Lee
Keyword(s):  
Supply Chain ◽  
Product Development ◽  
Product Quality ◽  
New Product Development ◽  
New Product ◽  
Revenue Sharing ◽  
Supply Chain Contracts ◽  
Revenue Sharing Contract ◽  
Cooperative Relationship ◽  
Development Capability

New product development has been serving as a growth engine for companies; given this background, the innovation of suppliers that possess new technologies for new products has been a significant subject for manufacturers, particularly in high-tech industries. However, the technology uncertainty associated with the supplier’s development capability may become a considerable obstacle to new product development projects. In this paper, we further develop an analytical model that has been widely applied in the economics literature and examine two representative supply chain contracts, a revenue-sharing contract and a cost-sharing contract, for new product development through upstream innovation under technology uncertainty. We confirm that the supplier’s development capability has a significant impact on contract feasibility. The revenue-sharing contract helps to attain a higher new product quality level and profit for the supply chain. Furthermore, we explore the relationship between a manufacturer and a supplier concerning the performance of the new product development project. Adopting a Nash bargaining model, we analyze the two supply chain contracts under a cooperative relationship in which the manufacturer and supplier cooperatively determine the sharing portion of the revenue or cost. For both contracts, compared with the unilateral relationship, the cooperative relationship leads to a lower manufacturer profit, but a higher new product quality and a higher supply chain profit.

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