New product development in turbulent environments: Impact of improvisation and unlearning on new product performance

Team learning is vital for organizations in order to compete in fast-paced environments. However, the ways learning can be effective in such environments warrents research, especially for teams developing new products under rapidly changing technological and market conditions. Interestingly, recent new product development (NPD) literature demonstrates the essential role of improvisation (i.e., planning and executing any action simultaneously) and unlearning (i.e., changes in team beliefs and project routines) for effective learning and performing under turbulent conditions. However, the combined effect of team improvisation and unlearning on new product success (NPS) has largely been ignored. This paper investigates the nomological relations among team improvisation and unlearning, new product success, and environmental turbulence, and contributes to the literature on NPD team learning, and on team flexibility under turbulent conditions. By examining 197 new product-development projects, we found that (1) environmental turbulence positively affects team unlearning, (2) team unlearning concurrently stimulates team improvisation, (3) team improvisation positively impacts new product success by utilizing/implementing new knowledge acquired by unlearning and improvisation. We further discuss the theoretical and managerial implications of our conclusions.     

Joint product assortment,inventory and price optimization to attract loyal and non-loyal customers

In this paper, we analyze the emerging retail practice of carrying a combined product assortment consisting of both regular “standard” products and more fashionable and short-lived “special” products. The purpose of this practice is to increase store traffic by attracting heterogeneous classes of customers, which drives up sales of standard products due to the potential cross-selling effect. Customers who are primarily attracted by special products will also buy some standard products. In this context, we analyze three decisions that are crucial for a retailer׳s commercial success: the product assortment, the inventory levels and the pricing. We propose an optimization model and an iterative heuristic to analyze the trade-offs between the combined product assortment, the inventory level and the price per product when there is limited shelf space. Using numerical experiments, we show that our heuristic can be trusted and that its accuracy improves when the number of products increases. Our findings indicate that to attract more customers for standard products, a retailer may benefit from carrying low priced special products which, if considered in isolation, would be non-profitable. As the cross-selling effect decreases, a retailer should focus more on the standard assortment by increasing its size and decreasing the prices. However, introducing special products and ignoring the cross-selling effect may decrease a retailer׳s profitability. We show that the introduction of special products involves more than just choosing the right specials for non-loyal customers but impacts the global assortment planning, the standard products and the products pricing.     

Organizational emotional capability,product and process innovation,and firm performance: An empirical analysis

The concept of emotional capability is one of the competencies that a firm has which is vital for the daily life of the organization. However, the effect of emotional capability, involving the dynamics of encouragement, displaying freedom, playfulness, experiencing, reconciliation, and identification constructs on the firm innovativeness (i.e., product and process) is interestingly missing in the technology and innovation management (TIM) literature. In this study, by investigating 163 Turkish firms, the dynamics of encouragement and experiencing were found to have a positive association with both firm product and process innovativeness; and the dynamics of displaying freedom have a positive relationship with firm process innovativeness. We also demonstrate that the impact of emotional capability constructs on firm innovativeness is contingent upon environmental uncertainty. Specifically, we find that the influence of the dynamics of encouragement on firm product innovation increases with increased rate of environmental uncertainty. Interestingly, the relationship between the dynamics of experiencing and product innovation across low, medium, and high levels of environmental uncertainty is an ∩-shaped. And, the relationship between the dynamics of displaying freedom and product innovation across low, medium, and high levels of environmental uncertainty is a U-shaped. In addition, we show that a firm's emotional capability influences its financial and market performance via firm innovativeness. We discuss the theoretical and managerial implications of the study's findings.     

Intra-regional sales,product diversity,and the performance of merchandising multinationals

This study examines the relationship between intra-regional sales, product diversity, and performance of 45 merchandising firms using data from 1997 to 2003. The interaction effects between product diversity and intra-regional sales on performance are explored, using a curvilinear relationship. The analysis integrates three main theories, namely the resource-based view, transaction costs, and organization learning theory. The models measuring a firm's performance by return on assets (ROA) and return on sales (ROS) show that at high levels of intra-regional sales, small levels of product diversity can generate greater return to a firm but high levels of product diversity may hurt a firm's performance. Higher levels of intra-regional sales tend to improve a firm's performance and enhance the impact of product diversity on performance.     

Pro-innovation culture,ambidexterity and new product development performance: Polynomial regression and response surface analysis

This study examines the intervening role of organizational ambidexterity in the relationship between pro-innovation culture and new product development (NPD) performance. The results indicate that organizational ambidexterity positively mediates the relationship between pro-innovation culture and NPD performance. The results show that when both exploration and exploitation are increased simultaneously, after an initial decline, NPD performance shows a rising trend. NPD performance tends to decline generally when there is an imbalance between the two though the plateau is at a point where exploitation is slightly higher than exploration. Additionally, pro-innovation culture can increase the gap between exploration and exploitation for exploration-oriented firms, which can lower their NPD performance. Overall, this study contributes to a deeper understanding of the underlying mechanisms that explain why firms with pro-innovation culture have higher NPD performance. Further, it enhances our understanding of the role of pro-innovation culture as an organizational context for building organizational ambidexterity, and provides new insights that can help reconcile the combined and balanced views of ambidexterity in enhancing NPD performance.     

Global product development projects: measuring performance and monitoring the risks

Abstract

This article investigates the development and application of key performance indicators for global product development. Two in-depth, longitudinal case studies with multinational Danish manufacturing companies were conducted, and highlight how key performance indicators, typically used for collocated, cross-functional product development, do not provide the predictive insight required to avoid the additional risks encountered in the global product development environment. Grounded in the case study results and building on established methodologies in performance measurement literature, a framework was developed and validated in two additional Danish companies to support project managers to develop: preventive indicators, which support the avoidance of identified risks, and outcome indicators, which support the measurement towards the attainment of project objectives. The study is unique as it is one of the very few longitudinal studies of engineering design activities in a global context, providing the in-depth contextual understanding towards key risks and their influence on performance; an important step to support researchers and practitioners with the development of preventive measures.     

Effect of product and geographic diversification on company performance: Evidence during an economic crisis

Based on a novel sample of Spanish listed companies from nonfinancial sectors, we explore the effect of product and geographic diversification on company performance during an economic downturn. The study develops comprehensive models to understand the interaction effect of both strategies on company performance. We find a U-shaped geographic diversification–performance relationship and no evidence of a positive effect from product diversification, unless combined with high levels of geographic diversification. The results show that companies improved their performance by combining these strategies. The results are robust after controlling for the endogeneity of both types of diversification. Our findings highlight that geographic diversification is an effective and valuable strategy in economic downturns. Furthermore, this study confirms the importance of the interaction between product and geographic diversification to determine the total effect of product or geographic diversification on company performance.     

Theory of dogmatism,personality traits and shopping behavior

Drawing on the theory of dogmatism and personality traits, this research examines the consumers' shopping behavior and intentions. We propose a model, which incorporates the precepts of stubbornness and retail purchasing conduct. Data were gathered from 446 shoppers in India and analyzed using partial least squares-structural equation modelling (PLS-SEM). The findings indicate that consumers' personality, purchaser conduct, narrowing conduct, and dependability influence their buying behavior. Moreover, consumers’ purchasing goals are influenced by assurance, customization, brand value, and social appeal. The study has practical implications for marketing managers who are focusing on customers with dogmatic behavior.     

R&D internationalization,product diversification and international performance for emerging market enterprises: An empirical study on Chinese enterprises

One motivation behind R&D internationalization for emerging market multinationals (EM MNEs) is to expand international markets. This paper analyzes whether the R&D internationalization of EM MNEs contributes to an improvement in international performance measured by foreign sales as a percentage of total sales (FSTS). Using panel data on China's listed companies, this paper introduces more scientific and normative indicators for measuring R&D internationalization in terms of geographic distribution (breadth) and overseas investment (depth). The results reveal an inverted U-shape relationship between R&D internationalization and international performance that is initially positive and eventually becomes negative. Product diversification has a significant moderating effect on the relationship between R&D internationalization breadth and international performance.     

Quality management and performance: a comparison between the UK and Turkey

Purpose: The aim of this article is to detail the correlation between quality management, specifically its tools and critical success factors, and performance in terms of primary operational and secondary organisational performances.

Design/methodology/approach: Survey data from the UK and Turkey were analysed using exploratory factor analyses, structural equation modelling and regression analysis.

Findings: The results show that quality management has a significant and positive impact on both primary and secondary performances; that Turkish and UK attitudes to quality management are similar; and that quality management is widely practised in manufacturing and service industries but has more statistical emphasis in the manufacturing sector. The main challenge for making quality management practice more effective lies in an appropriate balanced use of the different sorts of the tools and critical success factors.

Originality/value: This study takes a novel approach by: (i) exploring the relationship between primary operational and secondary organisational performances, (ii) using service and manufacturing data and (iii) making a cross-country comparison between the UK (a developed economy) and Turkey (a developing economy).

Limitations: Detailed contrast provided between only two countries.     

科学-技术-经济的联结与创新绩效的国际比较研究

提出了创新过程三阶段概念模型,用于描述国家层次的科学、技术与经济之间的联结关系.运用数据包络分析(DEA)及其改进方法对21个国家的创新活动效率进行评价,目的是比较中国和20个OECD主要国家在创新各阶段的效率差距.通过效率值比较发现,在研发效率上中国正在赶超OECD国家;但近年来中国在研发阶段的投入产出已经达到平衡.研究发现,中国的技术向经济转化的效率远远低于OECD国家的平均效率;影响中国技术向经济转化效率的关键因素是本国人在世界知识产权局申请的专利数与高技术产业增加值,而我国最具有提高潜力的创新产出指标为高技术产业增加值占GDP的比例.与国际上主要创新型国家相比较,当前我国创新活动中存在的主要问题是创新效率相对较低.因此,目前对中国而言,建设创新型国家的关键是要提高我国创新系统资源配置的效率.     

The impact of leader personality on new product development teamwork and performance: The moderating role of uncertainty

We examined the affect of leader personality on new product development (NPD) project performance under differing conditions of uncertainty. Our model posits teamwork as a mediating variable between leader personality and NPD performance. We hypothesized that the personality variable of openness would have a stronger influence on teamwork and NPD performance when uncertainty was high, and that the personality variables of extraversion, conscientiousness and stability would have a stronger indirect influence on NPD performance through teamwork when uncertainty was low. We used structural equation modeling to test two models of the influence of personality. In our study of 143 development projects, we support the importance of teamwork as a process variable linking leader personality to NPD performance and confirm that the effects of leader personality on these criteria depend on the level of uncertainty operating in NPD projects, thus substantiating all our hypotheses. Recommendations to re-consider hiring criteria and training for NPD project leaders are provided.     

Environmental practices and firm performance in emerging markets: the mediating role of product quality

Environmental practices have not received as much research attention in emerging market contexts as traditional topics like quality. However, the importance of environmental practices for a firm’s production strategy has been increasing at an unprecedented level across the globe. Our research objective is, therefore, to investigate the interplay between environmental practices and quality in the pursuit of firm performance. Relying on 492 responses from Turkish manufacturers to test our hypotheses, we show that environmental practices directly improve the quality of products over and above the effect of quality management practices in emerging markets. Product quality, in turn, is important for increasing firm performance, acting as a mediator for the positive effects of environmental practices on performance. Thus, we reveal that product quality functions as an instrumental conduit between environmental practices and firm performance in emerging markets like Turkey where stakeholder pressures are weak, and regulations are often not properly enforced.     

Workplace flexibility and new product development performance: The role of telework and flexible work schedules

This paper investigates the effects of telework and flexible work schedules on the performance of teams in new product development projects. Organizations increasingly introduce workplace flexibility practices that provide flexibility with regard to where or when the employee works. The findings of NPD teams in five cases, situated in two telecommunication firms, show that telework has a positive effect on NPD performance through enabling knowledge sharing, cross-functional cooperation and inter-organizational involvement. This improves the speed and quality of product development, provided that face-to-face contact is not completely replaced by virtual contact. A basic level of face-to face contact is necessary to offset the negative effects of telework on the quality of the shared knowledge, which are larger when the knowledge is sticky. Flexible work schedules and unexpectedly hot-desking were found to increase telework usage. This implies for managers that workplace flexibility needs enablers and cannot do without a sufficient level of face-to-face contact.     

一价法则、地区价格差异与面板单位根检验

采用1995—2005年中国城市间33类生产资料价格数据来分析中国的产品市场一体化.根据Levin-Lin-Chu面板单位根方法来检验城市间产品价格差异的长期收敛性,得出如下结论:(1)十年间,大多数生产资料在地区间的价格差异越来越小,且各类生产资料在城市间的价格差异程度有所不同;(2)在设定的三类面板模型中,大多数检验都拒绝了面板单位根的假设,即城市间各类产品的价格差异大都是收敛的,且收敛的速度非常快.这说明中国地区间的市场一体化已具备较高水平.     

The comparison between trade-in and leasing of a product with technology innovations

Companies can adopt trade-in and/or leasing to shorten consumers׳ upgrade cycle and gain control over secondary markets. In this paper, we consider a monopolistic manufacturer who offers a technology product to a market consisting of heterogeneous consumers. We focus on an exogenous, stochastic innovation process that determines the availability of new technology and consequently, residual value of the current product. We derive the optimal pricing strategy of trade-in and leasing, respectively, examine its impact on the manufacturer׳s expected profit, and compare the performance of the two strategies. Trade-in protects the manufacturer against residual value risk and allows the flexibility of offering the option at different innovation states separately. Leasing, on the other hand, provides the manufacturer an opportunity to circumvent low new product prices and thus increases expected profit when product reuse profitability is high. The interplay between the two forces, product reuse profitability and new product price, determines the preference between trade-in and leasing. Our findings provide monopolistic manufacturers guidance on how to optimally employ the trade-in and leasing strategies.     

The Big Five personality factors and team performance: implications for selecting successful product design teams

In the pursuit of faster product development, product design teams are a growing phenomenon in many organizations. In order to be successful, these teams must be composed of people who work well together. However, despite the benefit of selecting the optimal combination of team members, this topic has received little attention. Personality has been identified as a potentially helpful selection variable in the determination of optimal team composition. This study examines the relationships between the ‘Big Five’ personality factors (Conscientiousness, Extraversion, Neuroticism, Agreeableness, and Openness to Experience) and objective team performance for three-member product design teams. In addition to this, the potential incremental contribution of personality to the variance in team performance over that accounted for by established selection measures such as general cognitive ability was investigated. In the short duration of the study, it became apparent that some teams were capable of success, and some were not. Successful teams were characterized by higher levels of general cognitive ability, higher extraversion, higher agreeableness, and lower neuroticism than their unsuccessful counterparts. In successful teams, the heterogeneity of conscientiousness was negatively related to increments in product performance. Implications for the selection of product design teams and future directions for research are discussed.     

How market entry order mediates the influence of firm resources on new product performance

Building from the resource-based view of the firm and the first-mover advantage literature, this paper asserts that the entry order in a new product-market affects how the firm's resources and capabilities influence the product's performance. This proposition is tested on a sample of 136 product launches by Spanish manufacturing firms. The empirical analysis reveals that firms with superior managerial and R&D resources achieve superior new product performance when an early-entry strategy is adopted. Manufacturing resources also contribute positively to the success of new products, but this effect is weakened by the difficulties and inconveniences that firms with advantages in operations face when they attempt to pioneer a new market. The results regarding the influence of marketing resources on new product performance are not conclusive.     

The impact and management of cognitive gap in high performance product development organizations

The close alignment of applied research and development units with manufacturing operational structures can provide excellent opportunities for maintaining robust product pipelines and reducing product development cycle times. Within such an integrated organizational model (IOM), however, lies a potentially disruptive psychological mechanism that can lead to the dissolution of this delicate partnership if it is not handled properly. This mechanism is cognitive gap, which can take several basic forms: first, as differences between the nature and difficulty of the problem at hand and the cognitive resources of the problem solvers tasked with its solution; and second, as differences between the cognitive abilities and approaches of the problem solvers themselves. In this paper, we define and discuss cognitive gap within the context of Kirton's Adaption-Innovation theory, a useful framework for understanding problem solving (and problem solvers) in general. Specific implications (both favourable and potentially destructive) of cognitive gaps for high performance product development organizations are discussed, and suggestions for their effective management are offered.