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Business Process Digitalization and New Product Development: An Empirical Study of Small and Medium-Sized Manufacturers

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  • Jun Li

    (University of New Hampshire, USA)

  • Michael Merenda

    (University of New Hampshire, USA)

  • A.R. Venkatachalam

    (University of New Hampshire, USA)

Abstract

Previous research has largely ignored how business process digitalization across the value chain enhances firm innovation. This article examines the relationship between the extensiveness of business process digitalization (BPD) and new product development (NPD) in a sample of 85 small U.S. manufacturers. Scores of extensiveness was derived from the number of adopted e-business practices regarding inter and intra-firm activities such as: customer and supplier services (computer-aided design and manufacturing), employee services (education/training), and industry scanning (technology sourcing). We found that (1) NPD is positively related to the extensive use of BPD, and (2) the relationship between NPD and the extensiveness of BPD is stronger in more mature firms than that in younger firms. We conclude that small and medium-sized enterprise (SME) production innovation strategies are positively associated with the strategic use of BPD and span spatial, temporal, organizational, and industry boundaries thus aiding SME global competitiveness.

Suggested Citation

  • Jun Li & Michael Merenda & A.R. Venkatachalam, 2009. "Business Process Digitalization and New Product Development: An Empirical Study of Small and Medium-Sized Manufacturers," International Journal of E-Business Research (IJEBR), IGI Global, vol. 5(1), pages 49-64, January.
    • Handle: RePEc:igg:jebr00:v:5:y:2009:i:1:p:49-64
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    Cited by:

    1. Andrey S. Vaulin, 2023. "Economic effect from digital integration: The case of a mechanical engineering enterprise," Journal of New Economy, Ural State University of Economics, vol. 24(3), pages 136-154, October.
    2. Gavriluţă Turtă Ioana Marinela & Nepotu Grigore & Ciochină Alexandru Bogdan & Cuciureanu Maria-Simona, 2022. "Development of digitization services in the context of the COVID-19 pandemic a solution for Smart City. Case study: Romania," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 16(1), pages 1087-1100, August.

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