Optimising NPD in SMEs: a best practice approach

2016 ◽  
Vol 23 (1) ◽  
pp. 262-284 ◽  
Author(s):  
Nick Leithold ◽  
Tino Woschke ◽  
Heiko Haase ◽  
Jan Kratzer

Purpose – This study analyses new product development (NPD) processes of small- and medium-sized enterprises (SMEs). The purpose of this paper is to find successful innovation processes of SMEs on the one hand, and to reveal starting points to further improve these processes on the other. Design/methodology/approach – Data were gathered from 49 semi-structured, face-to-face interviews with German firms. From the total of 49 cases, the authors identified three manufacturing SMEs with high-performing innovation processes, whose NPD processes the authors took as best practice examples. The authors then used the design structure matrix to map these three NPD processes, and optimised the sequence by applying an optimisation algorithm. Findings – The authors determined which activities could be done sequentially, in parallel, or overlapping. The authors also scrutinised the position of dynamic milestones and demonstrated that the best-performing SMEs had flexible NPD processes, which allowed for an accelerated innovation process. Research limitations/implications – Due to the qualitative design of the investigation, the research presented was not specifically designed to draw statistical generalisations. For this reason, the results may not be applicable to all SMEs. Practical implications – The authors recommend that SMEs uncouple activities as much as possible. In this regard, the findings revealed that that especially technical and economic activities may be conducted in parallel due to their low dependence. Originality/value – The paper offers an SME-specific NPD process to optimise the innovation performance. Moreover, the findings deliver new knowledge on how the best-performing SMEs innovate.

2016 ◽  
Vol 35 (1) ◽  
pp. 88-103 ◽  
Author(s):  
Peter Robbins ◽  
Colm O’Gorman

AbstractSmall- and medium-sized enterprises (SMEs) make a considerable contribution to the development and diffusion of innovation as well as accounting for the bulk of economic activity and employment in Ireland. A formal process for managing the stages of innovation projects is generally cited as a key component of best practice in new product development (NPD). Successfully managing innovation is an important business objective for SMEs, and yet, relatively little is known about how innovation-active firms approach innovation and, specifically, whether firms use formal processes to manage their NPD activities. This study of innovation-active Irish SMEs finds that three quarters of firms report that they do not operate a formal innovation process, yet this is not associated with poorer performance in terms of revenues from new products and services; and there are few differences between firms with formal innovation processes and firms with informal innovation process across each stage of the Innovation Value Chain. Having a more formal innovation process is, however, associated with success at bringing novel products to market. This study contributes to our understanding of the management of innovation in SMEs and to the emerging literature on SMEs that has emphasised both the prevalence and the effectiveness of informal management processes.


2017 ◽  
Vol 23 (3) ◽  
pp. 518-536 ◽  
Author(s):  
Yuanzhu Zhan ◽  
Kim Hua Tan ◽  
Guojun Ji ◽  
Leanne Chung ◽  
Minglang Tseng

Purpose The purpose of this paper is to suggest how firms could use big data to facilitate product innovation processes, by shortening the time to market, improving customers’ product adoption and reducing costs. Design/methodology/approach The research is based on a two-step approach. First, this research identifies four potential key success factors for organisations to integrate big data in accelerating their product innovation processes. The proposed factors are further examined and developed by conducting interviews with different organisation experts and academic researchers. Then a framework is developed based on the interview outputs. The framework sets out the key success factors involved in leveraging big data to reduce lead times and costs in product innovation processes. Findings The three determined key success factors are: accelerated innovation process; customer connection; and an ecosystem of innovation. The authors believe that the developed framework based on big data represents a paradigm shift. It can help firms to make new product development dramatically faster and less costly. Research limitations/implications The proposed accelerated innovation processes demand a shift in traditional organisational culture and practices. It is, though, meaningful only for products and services with short life cycles. Moreover, the framework has not yet been widely tested. Practical implications This paper points to the vital role of big data in helping firms to accelerate product innovation processes. First of all, it allows organisations to launch new products to market as quickly as possible. Second, it helps organisations to determine the weaknesses of the product earlier in the development cycle. Third, it allows functionalities to be added to a product that customers are willing to pay a premium for, while eliminating features they do not want. Last, but not least, it identifies and then prioritises customer needs for specific markets. Originality/value The research shows that firms could harvest external knowledge and import ideas across organisational boundaries. An accelerated innovation process based on big data is characterised by a multidimensional process involving intelligence efforts, relentless data collection and flexible working relationships with team members.


2014 ◽  
Vol 18 (1) ◽  
pp. 35-44 ◽  
Author(s):  
Roberto Palmieri ◽  
Carlo Giglio

Purpose – The paper focuses on the management of the innovation process. It provides a more comprehensive approach for the analysis of the mutual relationships among creativity, knowledge and innovation (CKI), thus going beyond the one-to-one basis of analysis prevailing in literature. Given the varied set of stakeholders concerned with innovation process outcomes, the need for adopting different perspectives emerges (i.e. macroeconomic, institutional, socio-cultural and corporate). A framework, including a set of indicators grouped by perspective is proposed in order to help capture several outputs of innovation processes. Design/methodology/approach – This is a qualitative research paper based on the literature review and the development of theoretical remarks. The multiple-case study approach corroborates the theoretical analysis. Findings – The model aims to provide an operating tool for the management of innovation processes. It helps to assess the impact of innovation plans and operating actions at any level. The model may support decision making and control tasks in operating contexts, providing a strategic tool for governments and managers. This paper may encourage academicians to refine the CKI perspective and improve the model's capacity to predict and assess the impacts of innovation processes. Originality/value – The framework may help when analyzing a CKI interaction system. It allows understanding of the dynamics between creativity vs knowledge resource policies (creativity-based approach vs knowledge-based approach) and innovation goals. The model also serves to deepen the circular nature of CKI interactions and their outcomes.


2016 ◽  
Vol 45 (6) ◽  
pp. 1240-1258 ◽  
Author(s):  
Ashlea Kellner ◽  
Keith Townsend ◽  
Adrian Wilkinson ◽  
David Greenfield ◽  
Sandra Lawrence

Purpose The purpose of this paper is to develop understanding of the “HRM process” as defined by Bowen and Ostroff (2004). The authors clarify the construct of “HRM philosophy” and suggest it is communicated to employees through “HRM messages”. Interrelationships between these concepts and other elements of the HRM-performance relationship are explored. The study identifies commonalities in the HRM philosophy and messages underscoring high-performing HRM systems, and highlights the function of a “messenger” in delivering messages to staff. Design/methodology/approach Case study of eight Australian hospitals with top performing HRM systems. Combines primary interview data with independent healthcare accreditor reports. Findings All cases share an HRM philosophy of achieving high-performance outcomes through the HRM system and employees are provided with messages about continuous improvement, best practice and innovation. The philosophy was instilled primarily by executive-level managers, whereby distinctiveness, consensus and consistency of communications were important characteristics. Research limitations/implications The research is limited by: omission of low or average performers; a single industry and country design; and exclusion of employee perspectives. Practical implications The findings reinforce the importance of identifying the HRM philosophy and its key communicators within the organisation, and ensuring it is aligned with strategy, climate and the HRM system, particularly during periods of organisational change. Originality/value The authors expand Bowen and Ostroff’s seminal work and develop the concepts of HRM philosophy and messages, offering the model to clarify key relationships. The findings underscore problems associated with a best practice approach that disregards HRM process elements essential for optimising performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Viktor Prokop ◽  
Jan Stejskal ◽  
Beata Mikusova Merickova ◽  
Samuel Amponsah Odei

PurposeThe purpose of this study is to introduce innovative ideas into the treatment of the radical and incremental innovations and to fill the research gap by using: (1) methods that can perform complicated tasks and solve complex problems leading in creation of radical and incremental innovation and (2) a broad sample of firms across countries. The authors’ ambition is to contribute to the scientific knowledge by producing evidence about the novel usage of artificial neural network techniques for measuring European firms' innovation activities appearing in black boxes of innovation processes.Design/methodology/approachIn this study, the authors incorporate an international context into Chesbrough's open innovation (OI) theory and, on the one hand, support the hypothesis that European radical innovators benefit more from foreign cooperation than incremental innovators. On the other hand, the results of the analyses show that European incremental innovators rely on domestic cooperation supported by cooperation with foreign public research institutes. Moreover, the use of decision trees (DT) allows the authors to reveal specific patterns of successful innovators emerging within the hidden layers of neural networks.FindingsThe authors prove that radical European innovators using either internal or external R&D strategies, while the combinations of these strategies do not bring successful innovation outputs. In contrast, European incremental innovators benefit from various internal R&D processes in which engagement in design activities plays a crucial role.Originality/valueThe authors introduce innovative ideas into the treatment of hidden innovation processes and measuring the innovation performance (affected by domestic or international cooperation) of European firms. The approach places emphasis on the novelty of innovation and the issue of international cooperation in the era of OI by designing the framework using a combination of artificial neural networks and DT.


2014 ◽  
Vol 22 (3) ◽  
pp. 7-10

Purpose – The purpose of this paper is to observe how telecommunication giant BT has used e-learning to prepare more than 6,000 information technology (IT) and technical staff over the past 2 years to support a move into new markets. Design/methodology/approach – Reveals how the company met the challenges of rapidly improving the skills of IT and technical staff, standardized a best-practice approach to IT training across key lines of business and increased levels of staff engagement. Findings – Charts the creation of flexible learning and development programs known as accredited-learning pathways (ALPs), which have since been developed to cover wider areas of employee training at BT. Practical implications – Explains that ALPs now form a key part of BT’s strategic workforce improvement initiatives and are instrumental in embedding continuous learning and accreditation for IT skills. More than 6,000 people have completed ALP content since the program inception in 2011. Social implications – Reveals that the success of the program resulted in BT being awarded the Best IT Training accolade at the training company Skillsoft’s annual user conference in 2013, by a panel of independent industry experts. Originality/value – Provides the inside story of a key development initiative at a major international telecommunications company.


2020 ◽  
Vol 24 (6) ◽  
pp. 1343-1367 ◽  
Author(s):  
Xi Zhang ◽  
Jiaxin Tang ◽  
Xin Wei ◽  
Minghui Yi ◽  
Patricia Ordóñez

Purpose The purpose of this paper is to explore the impact of mobile social media functions on explicit and implicit knowledge sharing under the “Guanxi” system based on the framework of stimulus–organism–response (SOR). Design/methodology/approach Combined with Guanxi theory, this paper designs an experiment to collect data from the new product development (NPD) teams. Findings Interestingly, the results show that the effect of social media communication function on employees is greater than the impact of collaboration on employees. Specifically, on the one hand, the more employees communicate in social media, the better their feelings will be, the less they will share knowledge. On the other hand, the collaboration function has a significantly negative impact on the psychological factors of employees. Excessively close cooperation and contact may instead create a contradiction between the employees, which is not conducive to the occurrence of knowledge sharing. Originality/value This paper extends SOR framework by combining Guanxi theory to examine the relationship between social media functions and knowledge sharing behavior (KSB). In practical, companies should pay attention to the frequency of employee using social media when it is introduced for NPD teams to control the negative influence of social media functions on employee KSB.


2019 ◽  
Vol 23 (2) ◽  
pp. 214-229 ◽  
Author(s):  
Sophie Raedersdorf Bollinger

Purpose Innovation processes are inherently uncertain. They account for a high proportion of risks taken by companies and cause tensions. The purpose of this paper is to consider whether some management tools facilitate the smooth implementation of an innovation process. Does the relevance of these tools depend on the size of the company, its activity sector, the type of innovation expected or the viewpoint of the manager in charge? Design/methodology/approach The author answers these questions using a quantitative questionnaire survey of 169 companies. This survey allows the author to describe the tools and practices of management control of innovation processes and to highlight the specific needs of different sets of companies. Findings The collected data show a convergence of tools and practices used, which the literature on managerial control and creativity helps us to understand. Originality/value The paper also contributes to reconciling management control and innovation activities. In particular, it investigates how the use of management tools varies depending on managers’ viewpoints. A distinction is made between formal, information system-based tools and more informal, human relationship-based tools.


2019 ◽  
Vol 25 (1) ◽  
pp. 144-163 ◽  
Author(s):  
Giustina Secundo ◽  
Antonio Toma ◽  
Giovanni Schiuma ◽  
Giuseppina Passiante

PurposeDespite the abundance of research in open innovation, few contributions explore it at inter-organizational level, and particularly with a focus on healthcare ecosystem, characterized by a dense network of relationships among public and private organizations (hospitals, companies and universities) as well as other actors that can be labeled as “untraditional” player, i.e. doctors, nurses and patients. The purpose of this paper is to cover this gap and explore how knowledge is transferred and flows among all the healthcare ecosystems’ players in order to support open innovation processes.Design/methodology/approachThe paper is conceptual in nature and adopts a narrative literature review approach. In particular, insights gathered from open innovation literature at the inter-organizational network level, with a particular attention to healthcare ecosystems, and from the knowledge transfer processes, are analyzed in order to propose an interpretative framework for the understanding of knowledge transfer in open innovation with a focus on healthcare ecosystem.FindingsThe paper proposes an original interpretative framework for knowledge transfer to support open innovation in healthcare ecosystems, composed of four main components: healthcare ecosystem’s players’ categories; knowledge flows among different categories of players along the exploration and exploitation stages of innovation development; players’ motivations for open innovation; and players’ positions in the innovation process. In addition, assuming the intermediary network as the suitable organizational model for healthcare ecosystem, four classification scenarios are identified on the basis of the main players’ influence degree and motivations for open innovation.Practical implicationsThe paper offers interpretative lenses for managers and policy makers in understanding the most suitable organizational models able to encourage open innovation in healthcare ecosystems, taking into consideration the players’ motivation and the knowledge transfer processes on the basis of the innovation results.Originality/valueThe paper introduces a novel framework that fills a gap in the innovation management literature, by pointing out the key role of external not R&D players, like patients, involved in knowledge transfer for open innovation processes in healthcare ecosystems.


2015 ◽  
Vol 57 (3) ◽  
pp. 262-278 ◽  
Author(s):  
Arabella Volkov ◽  
Michael Volkov

Purpose – The purpose of this paper is to contribute to the understanding of the development of students’ skills in the context of team-based learning. Academics have heeded the call to incorporate team learning activities into the curricula, yet little is known of student perception of teamwork and whether they view it as beneficial to them and their future professional career. Further, this study presents an instructional framework to guide best practice in higher education practitioners with regard to the design of teamwork assessment. Design/methodology/approach – The paper adopts a qualitative approach utilising 190 students’ reflections to examine their perception of the benefits of teamwork and whether it will contribute to their future professional work. Findings – Results indicate students perceive team-based assessment tasks require them to adopt a deep approach to learning together with a deep approach to study, as well as improving their skills in the areas of collaboration, team unity and cultural diversity. Further, the study identified a best practice approach that higher education practitioners should adopt in teamwork assessment design giving this study both national and international significance and aids fellow educators in their practices. Research limitations/implications – Because of the chosen research approach, the results may lack generalisability. Therefore, researchers are encouraged to test the proposed propositions further. Practical implications – The paper presents important implications for those involved in the development of assessment items where objectives include the development of team skills and quality learning outcomes. The findings are vital for unit and course planning and design generally, and assessment planning, design and processes, specifically, both nationally and internationally. Originality/value – This paper fulfils an identified need to study students’ perceptions of teamwork, whether they view it as beneficial to them and their future professional career, and presents a best practice approach for teamwork assessment design.


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