Effects of marketing–manufacturing integration across stages of new product development on performance

Our understanding on the benefits of marketing–manufacturing integration (MMI) across various stages of new product development (NPD) process is limited. Based on the resource-based view of a firm, this study empirically examines the direct and interactive effects of MMI in four stages of NPD process on three dimensions of new product performance. Survey data from 214 completed NPD projects in Chinese manufacturing firms are employed to test the developed hypotheses using hierarchical regression. The results indicate that greater MMI in each stage is, respectively, associated with faster NPD speed. Stronger MMI in business/market opportunity analysis (BMA), technical development (TD) and product testing (PT) stage is, respectively, associated with higher NPD cost efficiency. Higher MMI in BMA and PT stage is, respectively, associated with better market performance. In addition, the interactions of MMI in BMA and TD stages and MMI in PT and product commercialization (PC) stages have positive effects on NPD speed and NPD cost efficiency, while the interaction of MMI in BMA and PC stages has negative effects on NPD speed and NPD cost efficiency. The interaction of MMI in BMA, TD and PC stages is positively related to market performance; surprisingly, the interactions of MMI in BMA, TD and PT stages and MMI in BMA, PT and PC stages are negatively related to market performance. These findings have important implications for research and practice in both the cross-functional integration and NPD areas.     

Influence of market orientation on performance: the moderating roles of customer participation breadth and depth in new product development

ABSTRACT

With a greater number of B2B firms integrating customers into the new product development (NPD) process, how to utilize customer involvement in NPD is an important decision because it may be a double-edged sword carrying both bright and dark sides. Utilizing a sample of 193 B2B firms across various industries, we validate previous research that suggests market orientation positively influences NPD performance and subsequently examine how this relationship may either be enhanced or diminished contingent upon how customers are utilized in the NPD process. The results show that the market orientation–NPD performance relationship is enhanced by having customers participate in a greater number of activities throughout NPD (customer participation breadth) and diminished when customers are involved at deeper levels (customer participation depth). This research suggests that the exact involvement of customers is a critical decision and has clear implications for the dialogues about customer involvement and management of customer relationships.     

Knowledge Composition and Its Influence on New Product Development Performance in the Big Data Environment

Product innovation is regarded as a primary means for enterprises to maintain their competitive advantage. Knowledge transfer is a major way that enterprises access knowledge from the external environment for new product innovation. Knowledge transfer may face the risk of infringement of the intellectual property rights of other enterprises and the termination of licensing agreements by the knowledge source. Enterprises must develop independent innovation knowledge at the same time they profit from knowledge transfers. Therefore, new product development by an enterprise usually consists of three types of new knowledge: big data knowledge transferred from big data knowledge providers, private knowledge transferred from other enterprises, and new knowledge developed independently by an enterprise in the big data environment. To find what the influences of different types of knowledge are on new product development (NPD) performance, a model is presented that maximizes the expected NPD performance. The results show that the greater the weight of independent innovation knowledge, the greater the performance of NPD. Enterprises tend to transfer knowledge from the external environment when the research and development (R&D) investment is much higher, and enterprises will speed up independent innovation when independent innovation knowledge is expected to bring a larger market share. The model can help enterprises to determine knowledge composition, the scale of R&D investment and predict the performance of NPD.     

An empirical study of firm’s absorptive capacity dimensions,supplier involvement and new product development performance

Firms’ performance in their new product development (NPD) is believed to be positively related with involving suppliers in the process of new product development, and also with the organisation’s capacity and capability to absorb external and internal knowledge, namely absorptive capacity (AC). Addressing a gap in the literature, this study adopts the definition and structure for AC suggested by Tu et al. (2006) to examine relationships between AC’s sub-dimensions with NPD performance, and also their moderating effects on the relationship between supplier involvement and new product development performance, on both financial and nonfinancial aspects. Data from a survey of 161 manufacturing firms are used to test the developed hypotheses using structural equation modelling and hierarchical regression. Direct and contingent effects of supplier involvement and AC on new product development performance are studied. As a result factors determining AC are found of different level of effects on financial and nonfinancial performance of new products, which will have implication for theory and practice.     

Examining the State of Risk Management Research in New Product Development Process

New products are major sources of competitive advantage and success for a manufacturing enterprise. However, not all new product development (NPD) initiatives result in a successful product and are therefore a major cause of wasted resources. Furthermore, NPD processes are becoming increasingly complex and risky due to today’s globalized market and customers’ desire for technologically advanced products. While there has been a significant interest in academia about NPD risks, the existing literature is spread across multiple outlets, making it difficult for any practitioner or researcher to synthesize the current work. This article aims to minimize that gap by providing a comprehensive overview of current research activities in the field of risk management in NPD process in one place. The research design is based on mapping and classification of the existing body of knowledge into the domains of NPD risk analysis and management. The article analyzes the contemporary NPD risk analysis methods on three fronts: risk identification, risk assessment, and risk mitigation. Based on the review, the article then identifies and discusses several key areas for future research significant to engineering management practices. Finally, an integrated framework is presented to provide a holistic approach toward risk management in the NPD process, followed by the practical implications for engineering managers and practitioners.     

The impact of sales and operations planning practices on manufacturing operational performance

There is a lack of rigorous empirical studies directly examining the impact of sales and operations planning (S&OP) practices on manufacturing operational performance. This paper aims to fill this gap by analysing a sample of 725 manufacturers from 34 countries. Hypotheses relate internal S&OP, integration with suppliers (IS) and integration with customers with manufacturing operational performance (delivery, quality and flexibility). The constructs were validated with structural equation modelling and the hypotheses were tested using multiple stepwise regression. Our findings showed a positive and moderate-to-large effect of internal S&OP on manufacturing performance, controlling for firm size, country economic development and market dynamics. There was no significant impact of supply chain integration on manufacturing performance. However, we found that IS positively moderated the relationship between internal S&OP and performance, suggesting that firms with mature IS amplify the effect of internal S&OP on performance. The study is among the first to empirically and rigorously establish the impacts of S&OP practices on manufacturing performance, using a large sample of manufacturers spanning different countries, markets and firm sizes. Results show that S&OP practices have a broad impact across several performance dimensions and are a powerful lever for generating manufacturing performance.     

Sequencing and batching procedures for minimizing earliness and tardiness penalty of order retrievals

External involvement in new product development (NPD) has received increasing attention from both academicians and practitioners in recent years. While external involvement has been studied extensively, the academic understanding on how external involvement influences firm performance and the role of time-to-market of new products is still very limited. Drawing on the literature on innovation search and knowledge-based view, we develop a conceptual framework in which external involvement is linked to time-to-market of new products and firm performance. We tested this model using data collected from 176 manufacturing companies in China. The results indicate that both customer and supplier involvement can contribute to the reduction of time-to-market of new products. We also show that time-to-market of new products completely mediates the relationships between two types of external involvement and two dimensions of firm performance. These findings have important implications for research and practice in both the external involvement and the NPD areas.     

An integrated approach to evaluating conceptual design alternatives in a new product development environment

As many companies have demonstrated over time, a conceptual design for a new product contributes greatly to an improvement in competitiveness, because it permits a reduction of costs, an increase in quality, and, often, a shortening of the time necessary to get the product on the market. That is why the evaluation of conceptual design alternatives created in a new product development (NPD) environment has long been very vital and a critical point for the future success of companies in fast-growing markets. These alternatives can be evaluated using the analytic hierarchy process (AHP), one of the most commonly used multiple criteria decision making (MCDM) techniques. This technique is used to reduce the number of conceptual design alternatives after ranking them using the scores obtained from the process. Furthermore, another technique, simulation analysis integrated with the AHP, is also used to help decision makers (product engineers or managers) perform economic analyses of the AHP's high-score alternatives using data from the generated simulation model of a real-life manufacturing system in which the final alternative is produced. In short, the objectives of this research are: first, to use the AHP technique to evaluate conceptual design alternatives in a NPD environment; second, to use a simulation generator integrated with this technique in order to perform economic analyses for the AHP's high-score alternatives. Finally, the results of both techniques, simulation and AHP, are used in a benefit/cost (B/C) analysis to reach a final decision on the conceptual design alternatives.     

Examining the effects of green supply chain management practices and their mediations on performance improvements

Environmental pressures have caused green supply chain management (GSCM) to emerge as an important corporate environmental strategy for manufacturing enterprises. For manufacturers to fully realise the performance potentials of GSCM, they need to integrate internal GSCM practices emphasising functional coordination with external GSCM practices such as cooperation with suppliers and customers in the implementation. Using coordination theory, this article examines three models used to evaluate the mediation relationships between the external and internal practices of GSCM with respect to environmental, economic, and operational performance. We posit that the strategic stance of manufacturing enterprises in improving their overall performance and competitive position requires a joint coordination of internal and external GSCM practices. Survey data collected from 396 Chinese manufacturing enterprises are used to validate our arguments by testing the mediation effects of two categories of GSCM practices. Our empirical results show support for the mediation effects, which indicates the importance for manufacturers to coordinate between the internal and external aspects of implementing GSCM practices to reap the performance benefits. Coordinating internal and external GSCM practices to seek performance improvements is an important aspect of the manufacturing operations strategy. The dynamics of implementing GSCM practices and the performance contingencies are worthwhile topics to pursue in future research.     

Effectiveness of planning and control systems: An empirical study of US and Japanese firms

Both researchers and practitioners have investigated the effectiveness of manufacturing planning and control systems (MPCS) in an attempt to justify the investment in MPCS. This study uses the Wight's (1981) detailed questionnaire to measure the degree of planning and control implementation in a manufacturing system, which is referred to as MPCS rating. The MPCS rating is then used to study the relationship between the self-assessed manufacturing competitiveness (cost, quality, delivery and flexibility) and the objective performance measures of manufacturing performance such as production cost, productivity change, customer reject percent, manufacturing lead time, etc. The results show that there is a strong relationship between MPCS ratings and objective performance measures as well as self-assessed competitiveness in both Japanese and US firms. The results are important since they indicate that fundamental manufacturing planning and control procedures improve a firm's performance on both its internal operations as well as external competitiveness goals.     

A study on the improvements of new product development procedure performance–an application of design for Six Sigma in a semi-conductor equipment manufacturer

With the pressure of intensive global competition and the trend of shortening product life-cycle, the procedure for new product development (NPD) has become the focus of business concerns and investment of large corporations and the key strategy to upgrade competitiveness of corporations. An effective NPD procedure can meet the demands on quality, time-to-delivery and cost limitations of a corporation. Measuring and analysing the performance of the existing NPD procedure and pinpointing and resolving the problems of the existing NPD procedure is the key to improve the NPD performance to meet a corporation's demands. Six Sigma is a systemic procedure commonly used to improve product quality. This paper proposes a model to evaluate and improve the performance of NPD procedures by following the systemic procedure of Six Sigma and applying criteria defined by application of performance matrix, factor analysis, and theory of constraints. The resulting model is then verified with real life NPD procedures from a certain semi-conductor equipment manufacturer such that corporative competitiveness can be enhanced through the elevating cycle of performance evaluation, problem excavation, causes analysis, and countermeasure determination and execution proposed by this paper.     

Intangible capital,knowledge and new product development competence in supply chains: process,interaction and contingency effects among SMEs

Leveraging the strengths of a firm’s supply chain partners for new product development (NPD) has become essential to satisfy rapidly changing customer demands and to remain competitive. Firms are, therefore, aiming to further their NPD competence, which we define as the ability of the supply chain to improve and generate new products and services, based on the processes and relationships established with suppliers and customers. This study examines how intangible capital and knowledge further the development of NPD competence within the context of a supply chain. A theoretical model, based upon resource-advantage theory, is tested via structural equation modelling utilising survey data collected from 195 small- and medium-sized enterprises in the manufacturing industry reporting on their primary supply chain. Our findings indicate that more easily transferable capital manifests itself in explicit knowledge and less easily transferable capital manifests itself in tacit knowledge. We further identify complementarities of the two types of intangible capital as influencing knowledge type development. More importantly, we find that the two types of knowledge differ in their ability to influence NPD competence in the supply chain, and that these links are moderated by relationship length. Supply chain management implications for academics and practitioners are presented.     

Learning curve modelling of work assignment in mass customized assembly lines

In customized markets, a large variety of product models is demanded by customers. That requires fast set-up of production resources to comply with specifications of the next model to be produced. Such compliance, however, may cause considerable production and quality losses owing to workers’ poor performance during the initial production runs of a new model. Therefore, modelling workers’ learning upon exposure to each product model may help production managers to define the best assignment scheme for models and workers, such that losses in the initial stages of production are minimized. The current paper presents a method that uses learning curves to guide the best assignment of product models to teams of workers. Product models are first clustered into families based on their similarities, aiming at a smaller data collection to generate the learning curves. Allocation of product families to teams is then carried out, based on the analysis of their corresponding learning curves. Two courses of action are proposed for this, depending on whether the production batch will lead to longer or shorter production runs. The proposed methodology is illustrated in a case study from the shoe manufacturing industry.     

Improving the NPD Process by Applying Lean Principles: A Case Study

Abstract:

This article extends the new product development (NPD) literature by presenting a case study of a lean product development (LPD) transformation framework implemented at a U.S. based manufacturing firm. In a departure from typical LPD methods, in this article the design structure matrix and the cause and effect matrix are integrated into the lean transformation framework, allowing analysis of the underlying complexity of a product development (PD) system, and thus facilitating determination of the root causes of wasteful reworks. Several strategies to transform the current PD process into a lean process are discussed. Besides the two-phase improvement plan, a new organizational structure roadmap and a human resources plan are also suggested to support the recommended changes in the NPD process. The results of the first phase show a 32% reduction in PD cycle time due to the proposed NPD process. The article concludes with lessons learned and implications for engineering managers based on the case study.     

同步工程中产品开发过程的全面质量控制

本文介绍的质量控制方案是用于在同步工程（ＳＥ）中获得开发过程的健壮性。该系统是根据弗朗霍夫生产技术研究所（ＩＰＴ）开发的过程－－结构矩阵，按不同细化程度来控制过程质量。粗控制是用来调整所有内部和外部客户－供应商关系之间在内容方面的利益；而在细控制阶段，则是为及早地识别设计结果中出现的各种冲突和缺陷，并及时通过计算机辅助将它们消除。两个控制层次都从信息系统中得益，该系统提供的用于实现内部和外部客户利     

Product service systems,after-sales service and new product development

After-sales service is a critical element in the successful marketing of many products. Capital goods, for example, manufacturing equipment, require after-sales service such as maintenance and repair in order for customers to get the full value from them. Some manufacturers have started to offer customers an integrated product and service, termed a product-service system in the academic literature. However, in order to deliver such integrated offerings, a different approach to new product development (NPD) is required. This is because the product design influences after-sales service requirements, and so this needs to be considered during NPD. However, researchers have largely ignored the relationship between NPD and service. To address this gap, six in-depth case studies were conducted at leading companies that offer a combined product-service offering, to identify how service requirements are typically evaluated at the design stage. The results show that at companies where after-sales is an important element of the business, service requirements are systematically evaluated during NPD through the involvement of after-sales personnel and the use of field service data to set design goals.     

Exhibiting Leadership and Facilitation Behaviors in NPD Project-Based Work: Does Team Personal Style Composition Matter?

Abstract:

Teams are increasingly becoming primary in the way employees in organizations conduct work. Understanding what makes teams effective is especially important for new product development (NPD) teams, whose members often have diverse backgrounds and competencies. The effects of similarities and differences among team members in NPD project-based work influence every aspect of that work. We explored the relationship between project team composition attributes and project team members' team leadership and facilitation behaviors, drawing from the literature on similarity-attraction effect.

Data from two time points that were 12-weeks apart were collected from 144 professional employees working in 48 project teams to test the study's hypotheses. Using HLM 6.0 (Raudenbush & Bryk, 2002), findings show that when it comes to project team composition, members of a team, who are similar on affective personal style traits, demonstrate greater team leadership and facilitation behaviors. We identify implications for generating productive team leadership and facilitation behaviors in NPD project-based work.     

Developing environmental and social performance: the role of suppliers’ sustainability and buyer–supplier trust

We explore how environmental and social performance of manufacturing firms can be improved as sustainable supply chain management (SSCM) develops and evolves within a firm from internal to external practices. Importantly, this study considers how key suppliers’ sustainability performance and buyer–supplier trust mediate and moderate such a development. A conceptual framework is developed which relies on resource-based theories and emerging empirical evidence. Then, partial least square methodology is applied on survey data from a sample of Italian manufacturing firms. Results show that manufacturing firms’ sustainability performance improves as SSCM develops; however, while internal practices have a direct impact on performance, the effect of external practices on a manufacturing firm’s sustainability performance is fully mediated by key suppliers’ sustainability performance. Yet, buyer–supplier trust significantly influences the scope of such gains. Since evidence suggests that manufacturing firms are still struggling with how to leverage supply chain innovation potential for sustainable development, this study provides a timely and valuable contribution.     

Empirical relationships between some manufacturing practices and performance

Intense global competition, rapid technological changes, advances in manufacturing and information technology and discerning customers are forcing manufacturers to adopt manufacturing practices and competitive priorities that enable them to deliver high quality products in a short period of time. Identifying manufacturers’ competitive priorities and effective manufacturing practices has long been considered one of the key elements in manufacturing strategy research. This paper presents the results of a study conducted to identify some of the effective manufacturing practices that have a significant influence on manufacturing performance. This study also identifies the main competitive objectives of manufacturing industries that participated in the study. The results reported in this paper are based on data collected from a survey using a standard questionnaire administered to 1000 manufacturers in Australia. Evidence indicates that product quality and reliability are the main competitive factors for manufacturers and price has become surprisingly a relatively less important factor. Results show that simultaneous pursuit of advanced quality practices can neutralize the potential negative impacts of manufacturing difficulties and significantly improve product quality and manufacturing performance. Failure mode and effect analysis (FMEA) is shown to be an important tool for improving product quality and on time delivery performance. FMEA practice driven by the intention to improve customer satisfaction is more effective than that practised to fulfil customer requirements. Effective supplier relationships are shown to contribute positively to the manufacturing performance. The results also suggest that maintaining a supplier rating system and product data management and regularly updating them with field failure and warranty data are important manufacturing practices.     

When does the diverse partnership of R&D alliances promote new product development? The contingent effect of the knowledge base

Diverse R&D alliance partnerships not only provide access to broad external knowledge but also bring considerable expenses caused by transaction costs and absorption problems. The effective utilization of external knowledge in developing new products is closely related to the internal knowledge base. This study examines how firms' knowledge base properties influence the relationship between diverse R&D alliance partnerships and NPD performance. We empirically find that increases in firms' knowledge complementarity reinforce the positive impact of diverse alliance partners on NPD performance, but increases in firms’ knowledge substitutability attenuate. These findings offer valuable managerial implications that firms should commit more seriously to their internal knowledge base so that they can achieve higher NPD performance when establishing R&D alliances with external actors.