Professional Documents
Culture Documents
Submitted By
Ajay pokhrel
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Introduction:
New product introduction and development is a hard task to most of the companies,
especially in the heterogeneous market and costumers where there is rapidly
changing technologies. New product development requires great effort and proper
coordination among firms marketing and manufacturing functions. External supply
chain partners and their coordination with the company are most important now
days. Supply-chain relationships are being restructured in order to peruse higher
goals like discover new product opportunities and to understand new market
dynamics. And second major development to radically alter new product
development process is increasing importance of the firms information system.
Therefore development of new product is dependent on the effective transformation
of information received via the coordination process into forms of organizational
intelligence that can be easily shared. Also importance of cross-functional
coordination is discovered for the success of new product development. The factors
that help in success of new product development must be synergistically integrated
instead of that performed in isolation. Empirically specific forms of organizational
intelligence are crucial mediating construction in the causal chain from coordination
processes to NPD performance. But all firms may not be successful in generating
both forms of organizational intelligence. The study is performed to examine how
the forces of market dynamism impact the separate effects of market and supply
chain intelligence on new product development performance.
The theoretical model presented in the study presents data collected from 169
manufacturing firms. The result supports the hypothesis about the importance of
both moderating (market dynamism and information system) and market mediating
(market intelligence and supply chain intelligence) in introduction of new products
on market.
Research model and hypothesis:
The goal of the study is to develop a model of NDP performance defined as the
revenues that accrue to a firm through the introduction of new product to the
market. These market intelligence and supply chain intelligence serve as critical
mediating constructions in the path to NPD performance.
COORDINATION AND IS CAPABILITY IMPACTS ON INTELIGENCE QUALITY
The capability of an organization to process, interpret, manipulate and access in a
purposeful, goal directed mannerism called intelligence quality of a firm. It is
reflected in accuracy, validity, relevance's and timeliness of information that it
obtains about activities that are critical to its performance.
Market intelligence quality: it is the quality of an organization that reflects the
extent to which the information obtained is accurate, valid, relevant, timely and
novel.
In the large firms the manufacturing and marketing functional groups are ikely to
be dispersed globally creating cultural, geographical, and time zone boundaries.
With respect to manufacturing supply chain it has been shown that firms with
widest area are of integration that firm integrates both suppliers and customers into
the activities of the firm, and receive large benefits. it is suggested that effects of
manufacturing and marketing interaction as well as boundary spanning
collaborations with supply chain partners are sufficiently amplified through the
effective use of IS, leading to improves market as well as supply chain intelligence.
Hence the effect of marketing-manufacturing coordination on the market
intelligence quality is moderated by IS capability such that firms are more
pronounced for firms with higher capabilities.
The effect of manufacturing supply chain intelligence quality is moderated by IS
capability such that effects are more pronounced for firms with more pronounced
for firms with higher IS capability.
Growth is major challenge for firms. Managers need to maintain open mind
regarding the knowledge generating potential of routine cross-functional
coordination activities. Managers also should take care to appreciate the knowledge
generate potential of all operational activities, not just those of R and D
departments, and hoe such potential can be supported and encouraged via IS
investments.
LIMITATIONS:
There are such limitations which are to be noted. First is , despite strong theoretical
arguments utilized in forming the model, the non significant results for the direct
mediating role supply chain intelligence quality require further explanation. Second
this study is confronted with some more commons and generalized data issues.
Since independent and dependent variables were collected from the same source
and use a similar method, the results of the present study could be affected by
common method bias.
And finally much of the primary data were collected using self reported scales.
While several researchers attest that the use of such scales do not necessarily
compromise the validity and may in fact be necessary to ensure interpretability of
accounts and response rates that lend to statistical power in analysis-secondary
data measures from alternate source could have enhanced the robustness of the
results.
CONCLUSIONS:
This study finds that the internal and external coordination of both synergistically
complemented by IS capabilities in their impact on the creation of high quality
actionable intelligence a crucial mediating factor for the enhancement of NDP
performance. Market dynamics appear to be more relevant as far as the
applicability of this intelligence toward NDP performances is concerned, with many
of their effects accentuate in more dynamic market environments.