Exploring New Product Portfolio Management decisions: The role of managers' dispositional traits

Cataloged from PDF version of article.Product strategy links to new product development (NPD) through new product portfolio management (NPPM). This dynamic decision process addresses the strategy implementation questions of identifying which new product ideas to pursue and their relative priorities. Despite the importance of NPPM in implementing product strategy, firms exhibit substantial performance-affecting differences. We investigate one potential source for such differences by examining the impact of managers' dispositional factors as a possible explanation. Using a case study research method, we examine differences in NPPM strategies and managers' revealed dispositional traits across three divisions of a single conglomerate firm operating in different business-to-business markets. Based on our analysis, we offer propositions relating managers' dispositions to NPPM strategy: analytic cognitive style is associated with balance, ambiguity tolerance is associated with strategic fit, and leadership style is associated with the relative weights applied to each dimension. © 2007 Elsevier Inc. All rights reserved

Successful new product development by optimizing development process effectiveness in highly regulated sectors: the case of the Spanish medical devices sector

Rapid development and commercialization of new products is of vital importance for small and medium sized enterprises (SME) in regulated sectors. Due to strict regulations, competitive advantage can hardly be achieved through the effectiveness of product concepts only. If an SME in a highly regulated sector wants to excell in new product development (NPD) performance, the company should focus on the flexibility, speed, and productivity of its NPD function: i.e. the development process effectiveness. Our main research goals are first to explore if SMEs should focus on their their development process effectiveness rather than on their product concept effectiveness to achieve high NPD performance; and second, to explore whether a shared pattern in the organization of the NPD function can be recognized to affect NPD performance positively. The medical devices sector in Spain is used as an example of a\ud highly regulated sector. A structured survey among 11 SMEs, of which 2 were studied also as in in-depth case studies, led to the following results. First of all, indeed the companies in the dataset which focused on the effectiveness of their development process, stood out in NPD performance. Further, the higher performing companies did have a number of commonalities in the organisation of their NPD function: 1) The majority of the higher performing firms had an NPD strategy characterized by a predominantly incremental project portfolio.\ud 2) a) Successful firms with an incremental project portfolio combined this with a functional team structure b) Successful firms with a radical project portfolio combined this with a heavyweight or autonomous team structure.\ud 3) A negative reciprocal relationship exists between formalization of the NPD processes and the climate of the NPD function, in that a formalized NPD process and an innovative climate do not seem to reinforce each other. Innovative climate combined with an informal NPD process does however contribute positively to NPD performance. This effect was stronger in combination with a radical project portfolio. The highest NPD performance was measured for companies focusing mainly on incremental innovation. It is argued that in highly regulated sectors, companies with an incremental product portfolio would benefit from employing a functional structure. Those companies who choose for a more radical project portfolio in highly regulated sectors should be aware\ud that they are likely to excell only in the longer term by focusing on strategic flexibility. In their NPD organization, they might be well advised to combine informal innovation processes with an innovative climate

Theoretical lenses and domain definitions in innovation research

Purpose - This study aims to scrutinize the meaning and domain of "innovation" by providing an extensive theory-driven review of the new product literature in marketing, management and engineering. The overall objective is to classify the recent literature on innovation and to illustrate theoretically derived discourses in the study of innovation. Design/methodology/approach - The paper organizes this literature by providing typologies of discourses, which define innovation. Based on our review of 238 articles from a comprehensive set of journals publishing innovation research, we propose a theoretical divide in the innovation literature. Findings - Theoretical underpinnings, namely adoption/diffusion theory versus the resource-based/contingency theory view, form one dimension of the typology. Jointly considered with the other two dimensions - level of analysis and customer vs firm perspective - a framework is formed of the different discourses and conceptualisations in the innovation literature. Originality/value - Past researchers have always proposed a definition of innovation that was embedded in a typology of innovation types; in contrast, the paper allows the theoretical discourses to unveil meanings of innovation and associated constructs (and hence it starts with theory specification, not construct definition). It argues for starting with theory as the basic division and proposes a theory driven typology. Through its theoretical genesis, the paper wishes to create a shared understanding among academics and practitioners of what constitutes innovation and constructs within the related theoretical net. © Emerald Group Publishing Limited

Effect of exploitation and exploration on the innovative as outcomes in entrepreneurial firms

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Knowledge Base, Exporting Activities, Innovation Openness and Innovation Performance: A SEM Approach Towards a Unifying Framework

In this paper we demonstrate the complexity that regulates the innovation-exports nexus. In particular we argue that innovation and exports should be treated as latent variables in order to account for as many facets possible thus, accounting for multifaceted heterogeneity. In this context, the role of innovation openness ought to be highlighted within a unified framework, as it is considered an additional activity of firms' knowledge creation strategy. In this line, innovation and exporting orientation are ruled by the firms' strategic mix comprised of internal knowledge creation processes and the diversity of innovation openness. Theoretical and empirical links between these major components are identified and measured employing a Structural Equation Modelling (SEM) approach on a sample of Greek R&D-active manufacturing firms. Empirical findings corroborate the complexity of relationships and indicate that the firms' knowledge base and open innovation strategy regulate via complementary and substitution relationships firms' innovation and export performance

Innovation capability and its role in enhancing the relationship between TQM practices and innovation performance

Innovation plays a critical role in predicting the long-term survival of organizations, determining an organization’s success and sustaining its global competitiveness, especially in an environment where technologies, competitive position and customer demands can change almost overnight, and where the life-cycle of products and services are becoming shorter.Therefore, the main purpose of this paper is to extend the existing knowledge as to the relationship between TQM practices and innovation performance by exploring the expected role of innovation capability as mediator to enhance this relationship.At the same time, this study attempted to shed a light on how to improve innovation performance of manufacturing companies in Malaysia.The gained results indicated that innovation capability mediates the relationship between TQM practices and innovation performance. More importantly, this study supports the findings of the past studies that questioned the role of TQM practices in improving innovation performance. Finally, in light of the obtained results, several recommendations were introduced to assist decision makers in manufacturing companies

Capacidade de Inovação: Revisão Sistemática da Literatura

This work contributes to consolidate academic research on innovation capacity. A systematic methodology was applied to review the literature since 1991. The recovered literature was analyzed and synthesized into a multidimensional framework composed of 7 determinants of innovation capability - transformational leadership; strategic intent to innovate; personnel management innovation; customer and market knowledge; strategic management of technology; organicity of the organizational structure; and project management that results in performance innovation in products and processes. Additionally, an inventory of management practices that characterize and underpin the aforementioned factors was conducted and presented. The framework and the list of management practices can be used as a basis for future empirical research or as a guide for improving firms' innovation capabilities