In union lies strength: Collaborative competence in new product development and its performance effects

Abstract

It is widely recognized that new product development (NPD) is a highly interdependent process, yet efforts to empirically model the interdependence and examine its effect on firm performance are scarce. Our study addresses this research gap. We model firms’ abilities to collectively collaborate with suppliers, customers, and internal employee teams in NPD as collaborative competence and examine its impact on project and market performance. Using responses collected from 189 NPD managers, we find empirical evidence for collaborative competence and its differential impact on project and market performance. Specifically, we find that collaborative competence has a direct impact on project performance, but its impact on market performance is indirect, mediated through project performance. The results have significant managerial implications; achieving superior market performance from inter‐ and intra‐organizational involvement is contingent on achieving superior project performance, and companies that fail to achieve desired project performance outcomes will also fail in achieving market performance goals.

Performance of supply chain collaboration – A simulation study

“…Raghunathan, (2001); Lee et al (2000) Mathematical model Inventory reduction and cost reduction can be achieved with efficient use of information sharing (Lee et al, 2000) and there is no need to invest in interorganizational systems for information sharing if order history is available ). Mishra and Shah (2009) Structural equation model…”

Supply chain of innovation and new product development

“…Conversely, customer integration has been found to be related to customer satisfaction, both directly (Homburg and Stock, 2004) and indirectly, through its relationship to product development and innovation (Koufteros et al, 2005;Song and Benedetto 2008). The positive effect of collaboration practices, as well as collaborative competences, on the NPD process has thus been largely demonstrated in the supply chain management literature on NPD (Mishra and Shah, 2009) and has been justified in terms of the value creation and knowledge sharing arising from the relational nature of these bilateral agreements (Menguc et al, 2014).…”

Classification of competencies in design management: Individual, collective and organizational levels

“…The collective competencies evidenced in the studies analyzed are: structuring, communication, and integration of individuals and work teams (Jevnaker, 1993;Mishra and Shah, 2009), collaboration between team members (Olson et al, 2001;Riel et al, 2010;Robin et al, 2007), construction of networks (Bertola and Teixeira, 2003;Brown, 2006;Capaldo, 2007;Dell'era and Verganti, 2009), combination of internal and external resources (Bertola and Teixeira, 2003;Bruce et al, 1999), sharing of information and knowledge of these teams (Bonjour and Micaelli, 2010;Riel et al, 2010;Robin et al, 2007;Capaldo, 2007;Osterlund and Loven, 2005), and the construction of the project team focused on competency management (Belkadi et al, 2007).…”

“…Common reference Structuring, communication, and integration of individuals and work teams (Jevnaker, 1993;Mishra and Shah, 2009). …”