Configurations Driving NPD Performance Fit with Market Demands and Time Constraints

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Weerd-Nederhof, Petra C. de and Visscher, Klaasjan and Song, Michael and Parry, Mark (2008) Configurations Driving NPD Performance Fit with Market Demands and Time Constraints. In: 15th EIASM International Product Development Management Conference, 2008, 30 June - 1 July 2008, Hamburg, Germany.

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Abstract:The research reported in this paper is aimed at developing knowledge on organizing NPD systems to optimize their contribution to performance. To this end, a systems approach to fit is used to explain the context-structure-performance relationships for NPD performance, specifically in terms of fit with market demands of the product concept and fit with time constraints of the development process. From a sample of 164 US firms, the top 15 % performers in terms of both fit with market demands and fit with time constraints have been identified. An optimized ‘Ideal Profile’ for the organization of NPD systems, formed by a consistent pattern of: NPD Process, NPD Project Structure and Management, Innovation Climate, and NPD Goal Setting and Portfolio Management, followed from the analysis of the NPD configuration of these top performers. For the calibration sample (the other 85%) significant deviation from the ideal profile on all elements of the configuration was found, the correlations between NPD Performance Fit with Market Demands and Fit with Time Constraints and total Euclidean distance are also significant. Overall, these results provide evidence for the proposition that (1) new product success is a function of a set of NPD development system decisions and (2) to truly understand the impact of those decisions, they must be considered as a holistic system.
The contribution of this research is in the empirical validation of the internal consistency of an ideal organizational profile for NPD systems achieving both a high NPD performance in terms of market acceptance of their new products as well in terms of the satisfactory level of the development times of those products. By also examining ideal profiles for each of these NPD performance dimensions separately, the conflicting demands created by multiple performance metrics are highlighted as well as the organizational trade-offs necessary for optimal performance. In terms of managerial implications, this also gives direction for organizational redesign to firms either wanting to maximize their product concept (Fit with Market Demands) or development process (Fit with Time Constraints) performance.
Item Type:Conference or Workshop Item
Faculty:
Management and Governance (SMG)
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Link to this item:http://purl.utwente.nl/publications/59865
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