The effect of integrated product development on efficiency and innovation

This study tested the effect of integrated product development (IPD) on the efficiency and innovation displayed in new product development (NPD) projects. IPD refers to the overlap, parallel execution, and concurrent workflow of activities. More than 600 employees from 62 R&D projects in one large hi-tech electronics organisation participated in the study. The degree to which the projects had actual IPD, innovated and worked efficiently were measured using the organisation's data collection system and questionnaires. Analysis was conducted at the project level. Seven regression models, as well as multiple comparison tests, were applied. The findings suggest that IPD is positively associated with efficiency and negatively with innovation. However, the trade-off between efficiency and innovation in NPD projects can be balanced, if the IPD level of implementation is tailored to the NPD project stages. Specifically, to successfully complete an NPD project, the emphasis in early stages must be on innovation so...

[1]  Jennifer A. Chatman,et al.  PEOPLE AND ORGANIZATIONAL CULTURE: A PROFILE COMPARISON APPROACH TO ASSESSING PERSON-ORGANIZATION FIT , 1991 .

[2]  J. M. Cortina,et al.  What Is Coefficient Alpha? An Examination of Theory and Applications , 1993 .

[3]  C. Prahalad,et al.  The new meaning of quality in the information age. , 1999, Harvard business review.

[4]  F. Damanpour Organizational Innovation: A Meta-Analysis Of Effects Of Determinants and Moderators , 1991 .

[5]  S. Scott,et al.  DETERMINANTS OF INNOVATIVE BEHAVIOR: A PATH MODEL OF INDIVIDUAL INNOVATION IN THE WORKPLACE , 1994 .

[6]  P. Adler,et al.  Flexibility Versus Efficiency? a Case Study of Model Changeovers in the Toyota Production System , 1999 .

[7]  R. Schroeder,et al.  The impact of human resource management practices on operational performance: recognizing country and industry differences , 2003 .

[8]  Daniel A. Levinthal,et al.  The myopia of learning , 1993 .

[9]  R. Gulati Is Slack Good or Bad for Innovation ? , 2007 .

[10]  Douglas Polley,et al.  Learning While Innovating , 1992 .

[11]  K. Eisenhardt,et al.  The Art of Continuous Change : Linking Complexity Theory and Time-Paced Evolution in Relentlessly Shifting Organizations , 1997 .

[12]  D. Pugh,et al.  Dimensions of Organization Structure , 1968 .

[13]  Daniel A. Levinthal,et al.  ABSORPTIVE CAPACITY: A NEW PERSPECTIVE ON LEARNING AND INNOVATION , 1990 .

[14]  B. Schneider,et al.  Climate strength: a new direction for climate research. , 2002, The Journal of applied psychology.

[15]  Michael N. Kennedy Product Development for the Lean Enterprise: Why Toyota''''s System Is Four Times More Productive an , 2003 .

[16]  Wendy K. Smith,et al.  A Structural Approach to Assessing Innovation: Construct Development of Innovation Locus, Type, and Characteristics , 2002, Manag. Sci..

[17]  Mary J. Benner,et al.  Process Management and Technological Innovation: A Longitudinal Study of the Photography and Paint Industries , 2002 .

[18]  Luk N. Van Wassenhove,et al.  Knowledge Driven Quality Improvement , 1998 .

[19]  Ming Ding,et al.  Structuring the New Product Development Pipeline , 2002, Manag. Sci..

[20]  Milton Harris,et al.  Organization Design , 2000, Manag. Sci..

[21]  Mohan V. Tatikonda,et al.  Successful execution of product development projects: Balancing firmness and flexibility in the innovation process , 2000 .

[22]  Mark A. Vonderembse,et al.  Integrated product development practices and competitive capabilities: the effects of uncertainty, equivocality, and platform strategy , 2002 .

[23]  Donald Gerwin,et al.  An Evaluation of Research on Integrated Product Development , 2002, Manag. Sci..

[24]  Mary Ann Glynn,et al.  Innovative genius: A framework for relating individual intelligences to innovation. , 1996 .

[25]  K. Klein,et al.  The Challenge of Innovation Implementation , 1996 .

[26]  R. Katz The Effects of Group Longevity on Project Communication and Performance. , 1982 .

[27]  E. Naveh,et al.  Do personal characteristics and cultural values that promote innovation, quality, and efficiency compete or complement each other? , 2004 .

[28]  L. James,et al.  rwg: An assessment of within-group interrater agreement. , 1993 .

[29]  K. Eisenhardt,et al.  Accelerating Adaptive Processes: Product Innovation in the Global Computer Industry , 1995 .

[30]  Paul C. Nutt,et al.  Tactics of Implementation , 1986 .

[31]  Harald Dyckhoff,et al.  A flexible concept for decision support: Evaluation and selection of suitable product development activities , 1997, Eur. J. Oper. Res..

[32]  Teresa M. Amabile,et al.  Creativity under the gun. , 2002, Harvard business review.

[33]  S. Sitkin,et al.  DISTINGUISHING CONTROL FROM LEARNING IN TOTAL QUALITY MANAGEMENT: A CONTINGENCY PERSPECTIVE , 1994 .

[34]  M. Glynn Innovative Genius: A Framework for Relating Individual and Organizational Intelligences to Innovation , 1996 .

[35]  Michael Song,et al.  The Effect of Perceived Technological Uncertainty on Japanese New Product Development , 2001 .

[36]  Alfred A. Marcus,et al.  Implementing Externally Induced Innovations: A Comparison of Rule-Bound and Autonomous Approaches , 1988 .

[37]  Marianne W. Lewis,et al.  PRODUCT DEVELOPMENT TENSIONS: EXPLORING CONTRASTING STYLES OF PROJECT MANAGEMENT , 2002 .

[38]  J. Hackman,et al.  Total Quality Management: Empirical, Conceptual, and Practical Issues , 1995 .

[39]  Roger G. Schroeder,et al.  A FRAMEWORK FOR QUALITY MANAGEMENT RESEARCH AND AN ASSOCIATED MEASUREMENT INSTRUMENT , 1994 .

[40]  A. Griffin PDMA Research on New Product Development Practices: Updating Trends and Benchmarking Best Practices , 1997 .

[41]  Paul S. Adler,et al.  Interdepartmental Interdependence and Coordination: The Case of the Design/Manufacturing Interface , 1995 .