Connecting product development and supply chain sub-processes to improve new product introductions: the impact of connection intensity and timing

ABSTRACT

This study examines the intersections between Product Development (PD) and the Supply Chain (SC) and their impact on the performance of New Product Introductions (NPI). We employ a PD/SC interface that consists of multiple viable sub-process connections and explore conjectures from past research that (a) only a selected number of such connections may be necessary and (b) that some may be more valuable than others. We use survey data of new product introduction projects from a wide range of industries to test the conjectures. Based on a comparative analysis of PD/SC sub-process connection intensities, we detect five dyads and two polyads (multiway connections) with high connection intensity. We empirically test the performance impact of the high-intensity connections and find that increases in the intensity of the polyads, coupled with the right timing does improve NPI effectiveness. To provide the theoretical foundation that explains why selected sub-process connections should be implemented with high intensity, we map our findings onto the tenets of resource dependency theory (RDT) and information processing theory (IPT). We capture our findings in three propositions and discuss implications for future research and practice.

KEYWORDS:

• New product introduction
• product development
• supply chain
• sub-process connections

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. Members of the Technology Council included engineers, project managers, marketing and quality management people from the business segments Food and Beverage, Biopharmaceuticals, Petrochemical, Water Purification, Medical Devices and Defense Industry. The main purpose of the Technology Council was to oversee the NPI process across all lines of business and to improve effectiveness and freshness of the product line.

2. We refer to sourcing of prototype components during development as PD sourcing to distinguish it from the SC oriented process of Procurement (see Figure 2) which begins once the product has launched.

3. http://www.apics.org/apics-for-business/products-and-services/apics-scc-frameworks/scor.

4. Interestingly, contact frequency has been considered as a dimension of intensity, but it has been reported to be less effective than collaboration, at least in a PD setting (Brown and Eisenhardt 1995). Put in the context of our study, it matters much more ‘how’ the people with specific process expertise connect rather than ‘how often’. That is why we focus on distance and not frequency on our study.

5. Based on OECD criteria for firm size classification.

6. The change in odds of NPI being effective from an increase of one unit is e^1.3° – 1 = 2.66; The change in probability of the NPI being effective is (2.66/(2.66 + 1)) x 100% = 73%.

7. The change in odds of NPI being effective from an increase of one unit is e^{5.652 –} 1 = 283.86; The change in probability of success is (283.86/(283.86 + 1)) x 100% = 99.6%.

Additional information

Notes on contributors

Dirk J Primus

Dirk J Primus is an Assistant Professor of Management at Bryant University in Smithfield, RI. His teaching and research draws from extensive experience (15 years) gained in various leadership positions in the Life Sciences Industry. In his Industry career, he worked for Johnson and Johnson, Fresenius Pro-Serve, Life Sciences International Suisse and most recently for Pall Life Sciences. His research is featured in Technovation, the Creativity Research Journal, the International Journal of Logistics Management , Journal of International Business and Economy and in the Journal of Marketing and Management Research. Dirk is an active member of the International Society of Professional Innovation Management (ISPIM), he is certified as a Lego Serious Play Facilitator, in Storytelling for Influence, as well as in Insights for Innovation.

Euthemia Stavrulaki

Professor Stavrulaki is an Associate Professor of Operations Management at Bentley University.  In her research Dr. Stavrulaki aims to understand the strategic and operational implications of optimizing the supply chain as well as integrating the supply chain with other important functional areas such as marketing and new product development.  Her work spans both manufacturing and service organizations.  She has published her work in many peer reviewed journals, such as Management Science, Manufacturing and Service Operations Management and the European Journal of Operational Research, has served as an area editor of IIE Transactions and has presented her work in many national and international conferences.  Prior to joining the faculty at Bentley University, she held a tenure track faculty position at the Smeal College of Business at Penn State University.  Professor Stavrulaki holds a Ph.D. Degree in Management Science from the Simon School of Business at the University of Rochester.