Fighting the fire: improvisational behavior during the production launch of new products

Purpose – Short-term problem solving during production launch may result in extended lead times and increased overall costs of new product development, thereby reducing the overall profitability of a new product. While the previous literature suggests formalized procedures and systematic problem solving approaches, empirical analyses indicate improvised, non-systematic, and ad hoc responses actually being used in firms’ real world problem solving processes. The purpose of this paper is to explain the role of such non-systematic approaches for the efficiency and effectiveness of problem solving processes during production launch. Design/methodology/approach – The paper empirically explores the impact of improvisational problem-solving behavior on a firm's production launch efficiency and on the success of new products. Moreover, the paper investigates the moderating role of technology familiarity, project complexity, and the number of occurring problems during production launch. Findings – The paper finds ...

[1]  Francisco J. Molina-Castillo,et al.  Product competence exploitation and exploration strategies: The impact on new product performance through quality and innovativeness , 2011 .

[2]  Wayne D. Hoyer,et al.  Sales, Marketing, and Research-and-Development Cooperation across New Product Development Stages: Implications for Success , 2010 .

[3]  Yi Xu,et al.  The copy-exactly ramp-up strategy: trading-off learning with process change , 2004, IEEE Transactions on Engineering Management.

[4]  Christine Moorman,et al.  The Convergence of Planning and Execution: Improvisation in New Product Development , 1998 .

[5]  David A. Griffith,et al.  An Examination of Exploration and Exploitation Capabilities: Implications for Product Innovation and Market Performance , 2007 .

[6]  C. Herstatt,et al.  Planning and Uncertainty in New Product Development , 2008 .

[7]  David Wilemon,et al.  Sources and assessment of complexity in NPD projects , 2003 .

[8]  Michael X Cohen Individual Learning and Organizational Routine: Emerging Connections , 1991 .

[9]  Eric Fang Customer Participation and the Trade-Off between New Product Innovativeness and Speed to Market , 2008 .

[10]  R. Cooper,et al.  The Impact of Product Innovativeness on Performance , 1991 .

[11]  J. Scott Armstrong,et al.  Estimating nonresponse bias in mail surveys. , 1977 .

[12]  Rebecca J. Slotegraaf,et al.  Product Development Team Stability and New Product Advantage: The Role of Decision-Making Processes , 2011 .

[13]  Günther Schuh,et al.  Holistic Approach for Production Ramp-Up in Automotive Industry , 2005 .

[14]  Gary Lynn,et al.  Effect of Improvisation on Product Cycle Time and Product Success: A Study of New Product Development (NPD) Teams in the United States , 2008 .

[15]  Malte Brettel,et al.  Corporate effectuation: Entrepreneurial action and its impact on R&D project performance , 2012 .

[16]  David Wilemon,et al.  An empirical investigation of complexity and its management in new product development , 2009, Technol. Anal. Strateg. Manag..

[17]  P. Milling,et al.  Manufacturing start-ups in the automobile industry , 2007 .

[18]  B. Pentland,et al.  Organizational Routines as Grammars of Action , 1994 .

[19]  M. Hobday Product complexity, innovation and industrial organisation , 1998 .

[20]  H. Ernst Success Factors of New Product Development: A Review of the Empirical Literature , 2002 .

[21]  J. Rittscher,et al.  Collaborative ramp-up planning and controlling , 2004, 2nd IEEE International Conference on Industrial Informatics, 2004. INDIN '04. 2004.

[22]  Hans Georg Gemünden,et al.  NPD Planning Activities and Innovation Performance: The Mediating Role of Process Management and the Moderating Effect of Product Innovativeness , 2007 .

[23]  Stefan H. Thomke,et al.  Modes of experimentation: an innovation process--and competitive--variable , 1998 .

[24]  Michael Song,et al.  MARKETING-MANUFACTURING JOINT INVOLVEMENT ACROSS STAGES OF NEW PRODUCT DEVELOPMENT: EFFECTS ON THE SUCCESS OF RADICAL VS. INCREMENTAL INNOVATIONS. , 2002 .

[25]  James M. Utterback,et al.  A dynamic model of process and product innovation , 1975 .

[26]  Abbie Griffin,et al.  Exploring Mediating and Moderating Influences on the Links between Cycle Time, Proficiency in Entry Timing and New Product Profitability , 2008 .

[27]  Nan S. Langowitz Managing new product design and factory fit , 1989 .

[28]  John Bessant,et al.  KNOWLEDGE MANAGEMENT ROUTINES FOR INNOVATION PROJECTS: DEVELOPING A HIERARCHICAL PROCESS MODEL , 2003 .

[29]  Frank T. Piller,et al.  Mass Customization: Reflections on the State of the Concept , 2004 .

[30]  Lisa C . Troy,et al.  Cross-Functional Integration and New Product Success: An Empirical Investigation of the Findings , 2008 .

[31]  G. Pisano Knowledge Integration and the Locus of Learning: An Empirical Analysis , 1994 .

[32]  William E. Souder,et al.  Transferring New Technologies From R&D To Manufacturing , 1989 .

[33]  Ross L Chapman,et al.  Complexity and learning behaviors in product innovation , 2004 .

[34]  Michael X Cohen,et al.  Organizational Routines Are Stored as Procedural Memory: Evidence from a Laboratory Study , 1994 .

[35]  Jeffrey Davidson,et al.  Providing Clarity and A Common Language to the “Fuzzy Front End” , 2001 .

[36]  A. Salter,et al.  Open for innovation: the role of openness in explaining innovation performance among U.K. manufacturing firms , 2006 .

[37]  Chris J. Backhouse,et al.  Management of uncertainty through postponement , 2004 .

[38]  D. V. Kunak,et al.  Assessing the development/production transition , 1988 .

[39]  K. Weick,et al.  Introductory Essay : Improvisation As a Mindset for Organizational Analysis , 1998 .

[40]  R. Calantone,et al.  Determinants of New Product Performance: A Review and Meta-Analysis , 1994 .

[41]  Markus C. Becker Organizational routines: a review of the literature , 2004 .

[42]  Dusya Vera,et al.  Time and Organizational Improvisation , 2002 .

[43]  M. Parry,et al.  A Cross-National Comparative Study of New Product Development Processes: Japan and the United States , 1997 .

[44]  Robert G. Cooper,et al.  The new product process: A decision guide for management , 1988 .

[45]  William H. Glick,et al.  Common Methods Bias: Does Common Methods Variance Really Bias Results? , 1998 .

[46]  Anne S. Miner Organizational Evolution and the Social Ecology of Jobs , 1991 .

[47]  Eric von Hippel,et al.  Task Partitioning: An Innovation Process Variable , 2015 .

[48]  Oscar Hauptman,et al.  Effectiveness of Organizational Responses to Technological Change in the Production Process , 1992 .

[49]  Linda Rochford,et al.  How involving more functional areas within a firm affects the new product process , 1992 .

[50]  K. Atuahene–Gima,et al.  Resolving the Capability–Rigidity Paradox in New Product Innovation , 2005 .

[51]  Markus C. Becker A framework for applying organizational routines in empirical research: linking antecedents, characteristics and performance outcomes of recurrent interaction patterns , 2005 .

[52]  Henrik Almgren,et al.  Pilot production and manufacturing start-up: The case of Volvo S80 , 2000 .

[53]  S. Winter Understanding dynamic capabilities , 2003 .

[54]  P. Jonsson An empirical taxonomy of advanced manufacturing technology , 2000 .

[55]  J. Wijngaard,et al.  Postponement: an inter-organizational perspective , 2007 .

[56]  J. M. James,et al.  THE EFFECT OF MONETARY INCENTIVES AND FOLLOW-UP MAILINGS ON THE RESPONSE RATE AND RESPONSE QUALITY IN MAIL SURVEYS , 1990 .

[57]  M. Cunha,et al.  Organizational improvisation: what, when, how, and why , 1999 .

[58]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[59]  Gregory N. Stock,et al.  Building Dynamic Capabilities in New Product Development through Intertemporal Integration , 2003 .

[60]  Teresa M. Amabile,et al.  Assessing the Work Environment for Creativity , 1996 .

[61]  T. Wall,et al.  On the validity of subjective measures of company performance , 2004 .

[62]  Dusya Vera,et al.  Improvisation and Innovative Performance in Teams , 2005, Organ. Sci..

[63]  Henk W. Volberda,et al.  Exploratory Innovation, Exploitative Innovation and Peformance: Effects of Organizational Antecedents and Environmental Moderators , 2006, Manag. Sci..

[64]  R. Cooper,et al.  New Products: What Separates Winners from Losers? , 1987 .

[65]  Anil Gaba,et al.  Coda : Creativity and Improvisation in Jazzand Organizations: Implications Fororganizational Learning , 1998 .

[66]  B. I. Van der Heijden,et al.  Measuring and Enabling Learning Behaviour in Product Innovation Processes , 2004 .

[67]  Daniel A. Levinthal,et al.  Demand Heterogeneity and Technology Evolution: Implications for Product and Process Innovation , 2001, Manag. Sci..

[68]  Michael X Cohen,et al.  Routines and Other Recurring Action Patterns of Organizations: Contemporary Research Issues , 1996 .

[69]  Subin Im,et al.  Spurring Cross‐Functional Integration for Higher New Product Performance: A Group Effectiveness Perspective* , 2010 .

[70]  Bernd Scholz-Reiter,et al.  Technical product change teams: an organizational concept for increasing the efficiency and effectiveness of technical product changes during ramp-up phases , 2007 .

[71]  Gary P. Pisano,et al.  Learning-before-doing in the development of new process technology , 1996 .

[72]  R. Hensley A review of operations management studies using scale development techniques , 1999 .

[73]  D. Leonard-Barton CORE CAPABILITIES AND CORE RIGIDITIES: A PARADOX IN MANAGING NEW PRODUCT DEVELOPMENT , 1992 .

[74]  A. Griffin,et al.  PDMA Success Measurement Project: Recommended Measures for Product Development Success and Failure , 1996 .

[75]  Steven Postrel,et al.  Shared knowledge, “glitches,” and product development performance , 1999 .

[76]  Bernard J. Jaworski,et al.  Market orientation: Antecedents and consequences , 1993 .

[77]  C. Fornell,et al.  Customer Satisfaction, Market Share, and Profitability: Findings from Sweden , 1994 .

[78]  E. Johnsen Richard M. Cyert & James G. March, A Behavioral Theory of The Firm, Prentice-Hall, Inc., Englewood Cliffs, New Jersey, 1963, 332 s. , 1964 .

[79]  David G. Hoopes Why are there glitches in product development , 2001 .

[80]  Dieter Spath,et al.  Quality Simulation for Fast Ramp Up , 2003 .

[81]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[82]  Peter Nyhuis,et al.  A controlling system based on cause–effect relationships for the ramp-up of production systems , 2007, Prod. Eng..

[83]  Kristen Olson,et al.  Survey Participation, Nonresponse Bias, Measurement Error Bias, and Total Bias , 2006 .

[84]  N. Lazaric The role of routines, rules and habits in collective learning: some epistemological and ontological considerations , 2000 .

[85]  R. Bagozzi,et al.  On the evaluation of structural equation models , 1988 .

[86]  Anne S. Miner,et al.  Organizational Improvisation and Learning: A Field Study , 2001 .

[87]  Morgan Swink,et al.  Design-manufacturing integration as a mediator of antecedents to new product design quality , 2004, IEEE Transactions on Engineering Management.

[88]  Robert W. Palmatier,et al.  Influence of customer participation on creating and sharing of new product value , 2008 .

[89]  Erwin Danneels,et al.  Product innovativeness from the firm's perspective: Its dimensions and their relation with project selection and performance , 2001 .

[90]  S. Winter,et al.  An evolutionary theory of economic change , 1983 .

[91]  Eric M. Olson,et al.  Organizing for effective new product development: The moderating role of product innovativeness. , 1995 .

[92]  Aruna Lakshmanan,et al.  The Aha! Experience: Insight and Discontinuous Learning in Product Usage , 2011 .

[93]  Nikos Tsikriktsis,et al.  Adoption of e‐Processes by Service Firms: An Empirical Study of Antecedents , 2004 .

[94]  Daniel Z. Levin,et al.  Technology management routines that matter to technology managers , 2008, Int. J. Technol. Manag..

[95]  C. Terwiesch,et al.  Learning and process improvement during production ramp-up , 1998 .

[96]  Anne S. Miner,et al.  Organizational Improvisation and Organizational Memory , 1998 .

[97]  K. Weick,et al.  Organizational change and development. , 1999, Annual review of psychology.

[98]  G Frizelle,et al.  A framework for manufacturing ramp-up , 2003 .

[99]  N. Langowitz An exploration of production problems in the initial commercial manufacture of products , 1988 .

[100]  Brian T. Pentland,et al.  Comparing Organizational Routines as Recurrent Patterns of Action , 2010 .

[101]  Teresa M. Amabile,et al.  Creativity, Improvisation, and Organizations , 2008 .

[102]  Stephen A. Leybourne Managing improvisation within change management: Lessons from UK financial services , 2006 .

[103]  L. Dwyer,et al.  Organizational Environment, New Product Process Activities, and Project Outcomes , 1991 .

[104]  Martin Wetzels,et al.  Response Rate and Response Quality of Internet-Based Surveys: An Experimental Study , 2004 .