Abstract
New product development (NPD) is critical for a firm’s competitive advantage. Since the early 1980s, NPD research has steadily increased and has defined successful practices. However, owing to this research field’s fragmentedness, there is ambiguity about what successful NPD looks like. Evidence of the effective design of management control systems (MCS) concerning NPD performance is inconclusive and calls for comprehensive analysis. Yet, there is no holistic framework that covers promising practices and structures. Drawing on a body of 284 article publications, we inductively develop a framework with nine clusters that, taken together, make up NPD performance. These are grouped addressing firm-external and firm-internal phenomena, for instance, cooperation, expertise, and the NPD process. We populate each cluster with variables that are proposed to drive performance, and derive current research trends and paths for future research on NPD. The review makes two contributions to the literature and one to practice. First, the comprehensive framework of NPD performance drivers supports the adjustment of prior general MCS design implications to specific NPD settings. Second, the inductive approach sets this review apart from prior reviews of NPD performance by proposing a holistic framework that is neither biased in a domain, nor in a pre-defined structure. Third, firms will benefit from the framework, because it helps to customize the MCS such that firms can comprehensively evaluate their NPD activities and can enhance performance.
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Notes
We define new product development (NPD) as the process from a conceptualized idea to market launch of novel or updated goods (see Neely et al. 1995). We delineate NPD from research projects that involve basic research activities that eventually provide input to subsequent NPD (see Chiesa and Frattini 2007). In contrast to NPD, which refers to the development process, innovation also refers to NPD’s output—the commercialized novel or updated good (for taxonomies of innovation, see de Jong and Marsili (2006)). Yet, some studies refer to innovation as a process (see Garcia and Calantone 2002).
The search algorithm reads: (“NPD” OR “New Product Development”) AND (Project* OR Process* OR Performance OR Success OR Efficiency OR Effectiveness OR Productivity OR Evaluati*). The asterisk in the search algorithm allows for flexible endings.
Screening publications’ abstracts for the defined search algorithm generated 6,830 hits.
The ABDC ranking comprises 2,767 journals that are divided into four categories of quality (A*, A, B, and C) based on qualitative and quantitative assessments.
The JQ3 ranking considers 889 journals evaluated along multiple dimensions by the association’s members, who are academic business researchers. The highest reputed journals are ranked A+ and decrease via A, B, C, to D.
For instance, we allocated a conceptual paper that develops a model on personality’s role in NPD teams (see Reilly et al. 2002) to the management of teams and team characteristics. In contrast, a best practice study on general drivers of success in NPD could not be allocated clearly (see Barczak et al. 2009). Thus, we excluded the latter from analysis.
Two articles referred to identically named journals that were not considered in the ranking. One article was included twice in the output with very similar labelling.
Fan et al. (2009) evaluated approaches to operationalize collaboration satisfaction, which is related to cohesiveness.
Procedural justice, distributive justice, and transformational leadership are antecedents of trust (Dayan et al. 2009).
Tighe (1998) developed a framework to gain managerial approval for NPD projects in autonomous settings: defining the project, impacts on the organization, and effects on the organization’s financials.
Market orientation is dichotomized as responsive and proactive. A responsive market orientation serves current customer needs, while a proactive market orientation discovers and satisfies latent and emerging customer needs. (Chen 2015, p. 36).
Process-based rewards are tied to procedures, behaviors, or other means of achieving desired outcomes. Outcomes-based rewards are tied to the actual results. (Chen 2015, p. 39).
For eight propositions of good R&D-marketing cooperation, see Souder (1988).
Team intuition depends on past team member experience, transactive memory systems (knowledge possessed by each member and awareness of who knows what), team empowerment, decision importance, and decision motives (opportunity or crisis; Dayan and Elbanna 2011).
A selection of decision-making support tools are: narrowing down alternatives by applying multiple-criteria decision-making techniques as the analytic hierarchy process (Ayag 2005a, b; Akomode 1999), developing a structuring matrix, for instance uncertainty vs. R&D option value (Lint and Pennings 2001), risk-scenario decision tool (Marmier et al. 2013), applying neural network decision support (Thieme et al. 2000), monetary quantification of differences among alternatives (Wouters et al. 2009), process model for resource scheduling and allocation (Abrantes and Figueiredo 2015), sensitizing for role of internal politics (Jones and Stevens 1999), operationalization to reduce escalation of commitment (Donthu and Unal 2014), grouping actors in collaborative decisions (Jaber et al. 2015), applying portfolio thinking (Kester et al. 2014), and integrative model of the NPD decision process (Calantone and di Benedetto 1988).
Further antecedents to speed-to-market were referred to in other clusters: work experience in the firm (McDonough 1993), perceived stress in combination with management support (Akgün et al. 2007a), technological competence (Acur et al. 2010), telework (Coenen and Kok 2014), and co-location (Lakemond and Berggren 2006).
For NPD process models and their assessment, see: a sphenomorph model for complex settings (Barclay et al. 1995); core characteristics of NPD process (Calantone et al. 1995); an NPD process for financial services (Edgett 1996); a fractal model of the NPD process (Spivey et al. 1997); revamping a NPD process (McDonough and Barczak 1999); NPD process with a focus on design and manufacturing (Bajaj et al. 2004); an NPD process in the toy industry (Sun and Wing 2005); cognitive maps to analyze processes (Carbonara and Scozzi 2006); the technology acquisition process (Cáñez et al. 2007); agile NPD process design (Fekri et al. 2009); fuzzy linear programming to maximize customer satisfaction (Chen and Ko 2010); NPD proficiency (Sandvik et al. 2011).
A selection of success factors encompasses formalized planning and coordination (Malhotra et al. 1996); the project evaluation process; the existence of new product managers (Reidenbach and Moak 1986); a strategic market focus in the NPD process (Balbontin et al. 1999); resource and skills availability (Huang et al. 2002); a lead user process to generate ideas (Lilien et al. 2002); actor networks during idea generation (Simon and Tellier 2011); a value proposition process to assess ideas (Hughes and Chafin 1996); customer support process during product design (Goffin 1998); compatibility and customer interface standards (Sahay and Riley 2003); proficiency in idea development, market opportunity analysis, technological development, product testing, and commercialization (Song and Perry 1997). For NPD process best practice studies, see Barclay (1992a, b).
For a description of a promising NPD process for discontinuous innovations, see Veryzer (1998).
A selection of tools, methods, and techniques covers: output controls, non-technical outside assistance (LaBahn et al. 1996), target costing (Afonso et al. 2008), portfolio assessment tied to program profitability and impact (Cooper and Kleinschmidt 1995), a Lagrangian decomposition heuristic (Varma et al. 2007), predictive models (Watkins 1984), risk management practices (Oehmen et al. 2014), design for excellence, failure mode and effects analysis, conjoint analysis (Yeh et al. 2010), focus groups, partnering customers and lead users, prototyping for highly innovative projects, and cross-functional development teams (Tidd and Bodley 2002). For compilations of management tools for NPD projects, see Maylor (2001, p. 95) and González and Palacios (2002, p. 263).
A selection of performance management systems covers: total cost analysis (Chen et al. 2006), dynamic multi-project management (de Maio et al. 1994), Six Sigma quality improvement (Jou et al. 2010), governance stage-gate controls (Baker and Bourne 2014), a risk management framework (Mu et al. 2009), and procedural guidelines to a performance management system (Rogers et al. 2005).
A successful cooperation depends on variables such as communication management, commitment to the collaboration (Lam and Chin 2005), the intensity and media richness of communication (Badir et al. 2008, 2009; Oke and Idiagbon-Oke 2010; Thomas 2013), openness to change, willingness to cooperate, high trust level (Tomes et al. 1996; Jassawalla and Sashittal 1998; Schleimer and Shulman 2011), individual-level innovative work behavior and expertise and team-level innovation norms, cohesion, and decision-making autonomy (Stock 2014), informal social systems (Cui et al. 2013), comprehensiveness in contractual governance (Parker and Brey 2015), an alliance governance structure, partner technological capability, the competitiveness of market environments (Fang et al. 2015), lifecycle stage (Eng and Wong 2006; Pujari 2006), explorative vs. exploitative strategy (Lambe et al. 2009), shared problem-solving, psychological safety, management direction (Bstieler and Hemmert 2010), goal congruence, complementary capabilities, and inter-firm coordination efforts (Yan and Dooley 2014). For a framework for successful collaborative NPD, see Zolghadri et al. (2011b).
Classification patterns of coordination: (1) innovation intermediaries as brokers, mediators, collectors, and connectors (Colombo et al. 2015), (2) buyer as mediator, buyer-designer partnership, designer as integrator, and team design activities (Ateş et al. 2015), (3) single participation vs. dual participation, separate work vs. integrated work, project manager vs. team consensus (Gerwin and Ferris 2004).
Sicotte and Bourgault (2008) illustrate four uncertainty types: technical and project uncertainty, market uncertainty, fuzziness and complexity. Kim and Wilemon (2003) break complexity down further, i.e. technological, market, development, marketing, organizational, and intra-organizational complexity. Siu et al. (2006) add governmental intervention.
More recently, Racela (2015) found that combining strategic orientations (i.e. customer, entrepreneurial, and IT orientations) is the most promising regarding performance. Pujari et al. (2003) propose that an additional ecological orientation can result in partial synergies of being simultaneously ecologically friendly and economically competitive.
Innovation culture is “involving entrepreneurship, risk taking, and openness to new ideas for new product development” (de Brentani and Kleinschmidt 2004, p. 312).
Globalization culture is an “international mindset and a global readiness [...] to deal effectively with the complexities and opportunities that result from different national cultures, geographic dispersion of markets and participants, building trust and cooperation among dispersed affliates, and cross-locational/-cultural idea generation and resource utilization” (de Brentani and Kleinschmidt 2004, p. 313).
References
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Acknowledgements
We thank the editor and the anonymous reviewers for their helpful comments. Further, we thank Florian Müller for his strong support during data collection. This research is part of the first author’s dissertation.
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Müller-Stewens, B., Möller, K. Performance in new product development: a comprehensive framework, current trends, and research directions. J Manag Control 28, 157–201 (2017). https://doi.org/10.1007/s00187-016-0243-4
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DOI: https://doi.org/10.1007/s00187-016-0243-4