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Product Development Drivers: An Explorative Study in Finland and China

Author

Listed:
  • Jukka Majava

    (University of Oulu, Finland)

  • Kris M. Y. Law

    (Hong Kong Polytechnic University, Hong Kong)

  • Harri Haapasalo

    (University of Oulu, Finland)

  • Y. C. Chau

    (City University of Hong Kong, Hong Kong)

  • Osmo Kauppila

    (University of Oulu, Finland)

Abstract

New Product Development (NPD) is vital for companies that operate in international markets. Yet, NPD has become increasingly challenging to manage; products are becoming ever more complex and various customers and multiple stakeholders’ needs must be satisfied. Additionally, NPD is often conducted in multiple locations around the world. Product development drivers can be defined as reasons for a company to initiate a product development project. These drivers affect decision-making, project outcome, and product strategy implementation. This study explores how product development drivers are perceived at the managerial level in technology companies based in Finland and China. The results indicate that managers’ views on these drivers differ in short-, medium-, and long-term development projects. Marketing and customers related drivers are considered the most important in the short term; financial goals related drivers in the medium term, and strategy and business environment related drivers in the long term. Furthermore, differences are found between Finnish and Chinese managers’ views. Finnish practitioners tend to be more focused on financial goals related drivers, whereas Chinese managers consider various factors important.

Suggested Citation

  • Jukka Majava & Kris M. Y. Law & Harri Haapasalo & Y. C. Chau & Osmo Kauppila, 2018. "Product Development Drivers: An Explorative Study in Finland and China," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 7(1), pages 35-53.
    • Handle: RePEc:isv:jouijm:v:7:y:2018:i:1:p:35-53
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    References listed on IDEAS

    as
    1. V. Krishnan & Karl T. Ulrich, 2001. "Product Development Decisions: A Review of the Literature," Management Science, INFORMS, vol. 47(1), pages 1-21, January.
    2. Tolonen, Arto & Shahmarichatghieh, Marzieh & Harkonen, Janne & Haapasalo, Harri, 2015. "Product portfolio management – Targets and key performance indicators for product portfolio renewal over life cycle," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 468-477.
    3. Bossink, Bart A.G., 2004. "Managing drivers of innovation in construction networks," Serie Research Memoranda 0015, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    4. Jukka Majava & Harri Haapasalo & Pekka Belt & Matti Mottonen, 2013. "Product development drivers in literature and practice," International Journal of Product Development, Inderscience Enterprises Ltd, vol. 18(6), pages 512-530.
    5. Steffen Kinkel & Oliver Som, 2010. "Internal and external R&D collaboration as drivers of the product innovativeness of the German mechanical engineering industry," International Journal of Product Development, Inderscience Enterprises Ltd, vol. 12(1), pages 6-20.
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