A MODERATION STUDY OF ORGANISATIONAL INTEGRATION AND NPD PROCESS PROFICIENCY IN THE U.S. AND KOREAN HEAVY CONSTRUCTION EQUIPMENT INDUSTRIES

2015 ◽  
Vol 19 (05) ◽  
pp. 1550061 ◽  
Author(s):  
MURRAY R. MILLSON ◽  
JONGBAE KIM
Keyword(s):  
New Product Development ◽  
Process Development ◽  
Product Market ◽  
New Product ◽  
Construction Equipment ◽  
Combined Model ◽  
Research Questions ◽  
Heavy Construction ◽  
The U.S ◽  
Market Success

This study explores the potential differences between the relationships relating the market success of new products, the proficiency with which new product development (NPD) activities are executed during NPD processes, and the degree of organisational integration among various groups during NPD processes in the (U.S.) and Korea. This research addresses three major research questions: (1) Does NPD process proficiency impact new product market success in U.S. and Korean firms? (2) Does organisational integration impact new product market success in U.S. and Korean firms? and (3) Does country moderate the relationships between NPD process proficiency and new product market success, and between organisational integration and new product market success? This study is based on NPD data related to new product projects from the heavy construction equipment industries in the U.S. and Korea. Based on our combined model, it was found that NPD process development proficiency significantly impacts new product market success but organisational integration does not impact new product market success. Additionally, it was found that country moderates the NPD process proficiency-NPD market success and NPD organisational integration-NPD market success relationships. Study implications and recommendations are provided for NPD managers based on this research.

INNOVATION IN HEAVY CONSTRUCTION EQUIPMENT MANUFACTURING: AN EXPLORATORY STUDY

2006 ◽  
Vol 10 (02) ◽  
pp. 127-161 ◽  
Author(s):  
MURRAY R. MILLSON ◽  
DAVID WILEMON
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Support Groups ◽  
New Products ◽  
Product Market ◽  
New Product ◽  
Construction Equipment ◽  
Equipment Industry ◽  
Heavy Construction ◽  
Market Success

This research investigates three major hypotheses important to new product market success in the heavy construction equipment industry which are as follows: the greater the degree of organisational integration during the development of new products, the greater will be the market success of new products; the greater the degree of organisational integration during the development of new products, the greater will be the proficiency with which new product development activities are performed; and the greater the proficiency with which new product development activities are performed, the greater will be the new product's success in the marketplace. Information was obtained concerning the most and least successful new products of U.S. firms in the heavy construction equipment industry. "Organisational integration" is defined as the degree of cooperation and communication between internal and external new product development (NPD) "support" groups and NPD teams. "NPD process proficiency" is defined as how well new product development stages and the NPD process as a whole are performed. "New product market success" is represented by four measures that encompass profit expectations, sales expectations, success entering new markets and entering existing markets with new products successfully. The survey approach was utilised to obtain data. Questionnaires were mailed to recipients such as New Product Development Managers who had already been designated by executives of the sample firms. A number of important findings were uncovered during this research. The integration between an organisation's customers and an NPD team is important to the success of newly developed heavy construction equipment products. However, the integration between organisations that supply material, components, assemblies and fabrications to new heavy construction equipment developers was found to hinder the market success of newly developed heavy construction equipment. These and other findings suggest several important implications for product development managers and scholars.

New Product Market Success for Bio-Tech Industry

2014 ◽  
Vol 543-547 ◽  
pp. 4634-4637
Author(s):  
Chao Yu
Keyword(s):  
New Product Development ◽  
Structural Equation ◽  
Product Market ◽  
New Product ◽  
Product Performance ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Organizational Integration ◽  
Market Success

The role of organizational integration as an antecedent of new product performance has been extensively documented in the literature. A leading corporation must either develop new successful products to sustain its business competence or keep growing in global markets. Organizational integration has attracted ever-increasing interest because of the publication of seminal works and is a strategically valuable resource for successful new product development (NPD). This article focuses on NPD projects in the Taiwanese bio-tech industry. In particular, this study examines the mediate relationship between Organizational integration and new product market success through innovation capability. We propose our research model and then test it by applying structural equation modeling based on the partial least squares (PLS) methodology. The results show that organizational integration not only can achieve new product market success directly but can also increase new product market success through innovation capability.

THE IMPACT OF CHANGING MARKETS AND COMPETITION ON THE NPD SPEED/MARKET SUCCESS RELATIONSHIP

2010 ◽  
Vol 14 (05) ◽  
pp. 841-870 ◽  
Author(s):  
MURRAY R. MILLSON ◽  
DAVID WILEMON
Keyword(s):  
New Product Development ◽  
New Product ◽  
New Markets ◽  
Dynamic Markets ◽  
Line Extensions ◽  
The World ◽  
Research Questions ◽  
Organizational Integration ◽  
The Impact ◽  
Market Success

Our research examines the relationships among four factors thought to be important to new product developing organizations. Those factors include the speed with which product developers produce new products and bring them to market; the degree of integration among the various groups participating in the New Product Development (NPD) process; the proficiency with which the product developers perform their tasks; and the degree of success attained upon the completion of the NPD process. Market dynamism, or the degree of customer changeability, and market hostility, or the degree of market competitiveness, are thought to moderate the relationships among the four previously noted factors. The research questions driving our investigation include: (1) Does NPD project success vary with NPD process speed?; (2) Does NPD speed vary across innovation types (new-to-the-world products, line extensions, etc.)?; (3) Does the strength of the relationships among NPD speed, organizational integration, NPD proficiency (overall and Fuzzy Front End [FFE]), and success vary with the degree of environmental dynamism (changing customer needs)?; and (4) Does the strength of the relationships among NPD speed, organizational integration, NPD proficiency (overall and FFE), and success vary with the degree of market hostility (competition)? We probed the electrical equipment, medical device, and heavy construction equipment industries to provide the data to address our research questions. Our research suggests that the speed with which projects were completed in our sample did not vary between projects that were more or less successful. We also found that the speed with which projects were completed did not vary across various product categories (new-to-the-world, line extensions, etc.) of newly developed products for the industries studied. Primarily, we found that market dynamism moderates the relationship between NPD speed and NPD proficiency whereas environmental hostility mediates NPD speed and NPD proficiency, NPD speed and organizational integration, and NPD speed and new product market success. Our data indicate that speed is not associated with NPD proficiency, degree of organizational integration, and new product success in less dynamic markets whereas speed has an inverse relationship with successfully entering new markets, the proficiency with which development and launch activities are performed, and the proficiency with which new product marketing strategies were implemented in more dynamic markets. Finally, we found that speed is inversely related to successfully entering new markets, overall NPD proficiency and organizational integration, predevelopment stage proficiency and organizational integration, and development and launch proficiency and organizational integration in non-hostile (competitive) environments whereas we found no significant relationships between these factors and speed in hostile environments. We provide several implications for both scholars and NPD managers.

Decision Making and Decision Support Within New Product Development

2014 ◽  
pp. 258-279 ◽  
Author(s):  
Bart MacCarthy ◽  
Robert Pasley
Keyword(s):  
Decision Making ◽  
Decision Support ◽  
New Product Development ◽  
Process Development ◽  
Early Stage ◽  
New Product ◽  
Group Decision Support Systems ◽  
Extensive Literature ◽  
Decision Attributes ◽  
Product And Process

There is an extensive literature on new product and process development (NPD). However, the analysis of decision making and decision support requirements in this area is less well researched. Here we discuss decision making in the context of NPD and identify decision types and decision attributes relevant to the NPD context. They illustrate the approach by analyzing NPD decisions in three industrial cases with a focus on early stage NPD decisions. They create a set of attributes with reference to the decision making literature. They find these attributes can be used to codify decisions in order to characterize them. They find the design decisions in these case studies to be creative and brainstorming-led with a low level of structure. The results provide insights both on decision making in NPD in practice and on the requirements for group decision support systems (GDSS) in this area. The authors suggest that an argumentation-based GDSS that allows structure to be developed may be suitable for these decisions. The cases are used to illustrate the application of the approach and show an interesting set of example decision types, but do not cover the range of NPD decisions that may be evident in a larger set of companies.

scholarly journals Capital Market Returns to New Product Development Success: Informational Effects on Product Market Advertising

2018 ◽  
Vol 56 (1) ◽  
pp. 37-56 ◽  
Author(s):  
Kyung M. Park ◽  
Pradeep K. Chintagunta ◽  
Inho Suk
Keyword(s):  
Product Development ◽  
Stock Returns ◽  
New Product Development ◽  
Capital Market ◽  
Abnormal Returns ◽  
Product Market ◽  
New Product ◽  
Direct To Consumer ◽  
Direct To Consumer Advertising ◽  
The Capital Market

The authors aim to answer the following question: If the capital market reacts with abnormal stock returns to new product development success events, do these returns influence subsequent marketing decisions? Drawing on informational market feedback and managerial learning theories, the authors posit that when firms are uncertain about how responsive the product market will be to their marketing activities, signals received from the capital market help them update their beliefs about the product market’s responsiveness. In the pharmaceutical context, the authors decompose the abnormal returns at a new drug approval event into components that the firm can and cannot predict (i.e., predicted and unpredicted abnormal returns) and find that the postapproval advertising budget is larger when unpredicted abnormal approval returns are higher. Furthermore, this tendency is more pronounced for spending on detailing than for direct-to-consumer advertising. Consistent with these higher budgets, the authors find that postlaunch advertising is more effective when unpredicted abnormal approval returns are higher, particularly for detailing spending (vs. direct-to-consumer advertising). Overall, this study suggests that information flows from the capital market’s initial perceptions at new product introduction play an important role in subsequent marketing decisions in the product market.

scholarly journals Patent Remedies

2016 ◽  
Vol 106 (5) ◽  
pp. 198-202 ◽  
Author(s):  
Carl Shapiro
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Hybrid System ◽  
New Product ◽  
Patent Holder ◽  
Patent Owner ◽  
Liability Rules ◽  
Patent Remedies ◽  
The U.S

Since the Supreme Court's eBay decision in 2006, the U.S. has employed a hybrid patent remedy system that mixes property and liability rules. When the patent owner and the infringer are competitors, the courts typically issue a permanent injunction requiring the infringer to cease its infringing activities. In contrast, when the patent owner and the infringer are not competitors, the courts often allow the infringer to continue its infringing activities so long as it pays specified ongoing royalties to the patent holder. This article studies the incentives for invention and for new product development in such a hybrid system.

MAKE-TO-CONCEPT: A "SOLUTION-BASED" APPROACH TO COMPLEX NEW PRODUCT DEVELOPMENT

2011 ◽  
Vol 15 (02) ◽  
pp. 279-301 ◽  
Author(s):  
LIHONG ZHANG ◽  
DAVID BRYDE ◽  
JOANNE MEEHAN
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Product Innovation ◽  
Process Development ◽  
New Product ◽  
Process Optimisation ◽  
System Specification ◽  
Research Findings ◽  
The Uk ◽  
Business Customers

Achieving close and on-going co-ordination between the various stakeholders involved in the product design and process development has been a main issue in complex new product development (CoNPD). Challenges arise in balancing product innovation and process optimisation, particularly when business customers place an order with a requirement featured as open system specification (OSS). This paper examines CoNPD projects in two international engineering companies based in the UK. The aim is to explore the use of specification management, with a particular focus on the project stakeholders that are both internal and external to the companies. Analysis of the data reveals issues associated with how the stakeholders interact to: manage the risks of associated with OSS projects, develop solution-based approaches and deal with the novelty of technology integration. The research findings provide evidence for a make-to-concept specification management process for contracted CoNPD projects. In doing so, the paper makes a contribution towards developing an approach to solution-oriented businesses that is informed by a rich understanding of how project stakeholders work together to manage CoNPD projects.

A Cross-Team Framework of International Knowledge Acquisition on New Product Development Capabilities and New Product Market Performance

2005 ◽  
Vol 13 (3) ◽  
pp. 54-78 ◽  
Author(s):  
Janet Y. Murray ◽  
Mike C.H. Chao
Keyword(s):  
Competitive Advantage ◽  
Knowledge Acquisition ◽  
Multinational Corporations ◽  
New Product Development ◽  
Market Performance ◽  
Product Market ◽  
New Product ◽  
Product Introduction ◽  
Knowledge Resources ◽  
International Knowledge

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.

scholarly journals THE IMPACT OF THE STANDARDIZATION OF THE NPD PROCESS ON ITS EFFICIENCY

2019 ◽  
Vol 20 (1) ◽  
pp. 149-167 ◽  
Author(s):  
Mateja Karničar Šenk ◽  
Matjaž Roblek
Keyword(s):  
New Product Development ◽  
Quantitative Research ◽  
Process Development ◽  
New Product ◽  
Independent Variables ◽  
Quantitative And Qualitative Research ◽  
High Degree ◽  
The Impact ◽  
A Company ◽  
Very High

The purpose of this study is to examine the impact of the standardization of the new product development (NPD) process on its efficiency. A dilemma exists with regard to determining to what extent NPD processes should be standardized, in order to not hinder the operators during the performance of NPD process and consequently, weaken it. The case analysis for this study was carried out at a company whose process development has been standardized for a decade and has undergone several degrees of standardization. Quantitative and qualitative research methods were applied in the study. A regression method was used for quantitative research in order to study the effects of selected dependent and independent variables; using qualitative analysis, we supported the findings of the quantitative analysis. The results of the analysis indicate that the standardization of the NPD process does have an impact on its efficiency. From the obtained results, it may also be concluded that a very high degree of standardization begins to reduce the efficiency of the NPD process.

Scanning and design thinking: organizational roles for innovation

foresight ◽  
2017 ◽  
Vol 19 (4) ◽  
pp. 337-353 ◽  
Author(s):  
Nanami Furue ◽  
Yuichi Washida
Keyword(s):  
New Product Development ◽  
Design Thinking ◽  
Idea Generation ◽  
Product Market ◽  
New Product ◽  
Content Type ◽  
Questionnaire Surveys ◽  
Japanese Companies ◽  
Market Strategies

Purpose The purpose of this paper is to first suggest scanning focal areas in new product development (NPD) by comparing with design thinking and, second, to uncover what people in different occupations expect of NPD based on future scenarios. Design/methodology/approach Authors place scanning and design thinking into a matrix of product-market strategies. In addition, this study adopts several open-end-type questionnaire surveys of employees at Japanese companies who have taken part in idea generation workshops that take a medium- to long-term perspective. Findings Authors found that innovations generated through scanning can cover the most difficult and uncertain areas in practice compared with design thinking. This manuscript also reveals occupational categories can be divided into two groups according to different expectations of NPD: the rapid-fire NPD expectation group and late-bloomer NPD expectation group. The former group which consists of marketing and engineering experts tends to expect that NPD is simply a response to existing needs and that profit will be gained expeditiously through NPD, while the latter, which comprising design and research experts, tends to expect that NPD will realize future innovations. Originality/value This study shows some common and different points between scanning and design thinking by using a theoretical framework of product-market strategies. Also, this study reveals who will lead innovation based on foresight in business.

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