IDEAS home Printed from https://ideas.repec.org/a/wsi/ijimxx/v23y2019i06ns1363919619500506.html
   My bibliography  Save this article

Npd Tools, Thoroughness And Performance In Small Firms

Author

Listed:
  • GERRIT ANTON DE WAAL

    (RMIT University, GPO Box 2476, Melbourne VIC 3001, Australia)

  • PAUL KNOTT

    (University of Canterbury, Private Bag 4800, Christchurch 8140, New Zealand)

Abstract

This paper draws on survey data to clarify whether small high-technology firms benefit most from adopting greater numbers of new product development (NPD) tools to support NPD projects, or from using tools more thoroughly. This is an important issue given that small firms adopt NPD tools despite facing acute resource limitations and using informal processes. Prior studies of the performance impact of NPD tools have focused on large firms, and very few have assessed the performance impact of using NPD tools to higher levels of thoroughness.The paper covers tools across functional/technical and management/marketing aspects of NPD, and measures performance in process, product and market. We found that increasing the number of tools adopted did not measurably improve performance, in contrast to prior findings in larger firms. Instead, we found that firms obtained meaningfully improved NPD performance from using tools at higher average levels of thoroughness. Higher average thoroughness produced statistically significant performance benefits across seven of our nine performance measures. Our findings imply that small firms should emphasize selective but thorough and well-designed implementation of NPD tools.

Suggested Citation

  • Gerrit Anton De Waal & Paul Knott, 2019. "Npd Tools, Thoroughness And Performance In Small Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(06), pages 1-26, August.
    • Handle: RePEc:wsi:ijimxx:v:23:y:2019:i:06:n:s1363919619500506
    DOI: 10.1142/S1363919619500506
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1363919619500506
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1363919619500506?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Milé Terziovski, 2010. "Innovation practice and its performance implications in small and medium enterprises (SMEs) in the manufacturing sector: a resource‐based view," Strategic Management Journal, Wiley Blackwell, vol. 31(8), pages 892-902, August.
    2. Ammar Al Shalabi & Jonas Rundquist, 2009. "Use Of Processes And Methods In Npd — A Survey Of Malaysian Industry," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 6(04), pages 379-400.
    3. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    4. Paula Jarzabkowski & Sarah Kaplan, 2015. "Strategy tools-in-use: A framework for understanding “technologies of rationality” in practice," Strategic Management Journal, Wiley Blackwell, vol. 36(4), pages 537-558, April.
    5. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 178-184, February.
    6. Grando, Alberto & Belvedere, Valeria, 2006. "District's manufacturing performances: A comparison among large, small-to-medium-sized and district enterprises," International Journal of Production Economics, Elsevier, vol. 104(1), pages 85-99, November.
    7. Andreas Schwab & Eric Abrahamson & William H. Starbuck & Fiona Fidler, 2011. "PERSPECTIVE---Researchers Should Make Thoughtful Assessments Instead of Null-Hypothesis Significance Tests," Organization Science, INFORMS, vol. 22(4), pages 1105-1120, August.
    8. Gerrit A. De Waal & Paul Knott, 2012. "Product Innovation Tool Adoption Behaviour In Technology-Based New Ventures," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 1-26.
    9. Gerrit A. De Waal & Paul Knott, 2013. "Innovation Tool Adoption And Adaptation In Small Technology-Based Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 17(03), pages 1-19.
    10. Robert P. Wright & Sotirios E. Paroutis & Daniela P. Blettner, 2013. "How Useful Are the Strategic Tools We Teach in Business Schools?," Journal of Management Studies, Wiley Blackwell, vol. 50(1), pages 92-125, January.
    11. Maylor, Harvey, 2001. "Assessing the relationship between practice changes and process improvement in new product development," Omega, Elsevier, vol. 29(1), pages 85-96, February.
    12. Jarzabkowski, Paula & Wilson, David C., 2006. "Actionable Strategy Knowledge:: A Practice Perspective," European Management Journal, Elsevier, vol. 24(5), pages 348-367, October.
    13. Jos Benders & Patrick Vermeulen, 2002. "Too Many Tools? On Problem Solving In Npd Projects," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 6(02), pages 163-185.
    14. Rosenbusch, Nina & Brinckmann, Jan & Bausch, Andreas, 2011. "Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs," Journal of Business Venturing, Elsevier, vol. 26(4), pages 441-457, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adomako, Samuel & Ahsan, Mujtaba, 2022. "Entrepreneurial passion and SMEs’ performance: Moderating effects of financial resource availability and resource flexibility," Journal of Business Research, Elsevier, vol. 144(C), pages 122-135.
    2. Partanen, Jukka & Kohtamäki, Marko & Patel, Pankaj C. & Parida, Vinit, 2020. "Supply chain ambidexterity and manufacturing SME performance: The moderating roles of network capability and strategic information flow," International Journal of Production Economics, Elsevier, vol. 221(C).
    3. Seo, Ribin & Park, Ji-Hoon, 2022. "When is interorganizational learning beneficial for inbound open innovation of ventures? A contingent role of entrepreneurial orientation," Technovation, Elsevier, vol. 116(C).
    4. Efrat, Kalanit & Asseraf, Yoel, 2019. "A shift in perspective? The role of emotional branding in shaping born globals’ performance," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    5. Roper, Angela & Hodari, Demian, 2015. "Strategy tools: Contextual factors impacting use and usefulness," Tourism Management, Elsevier, vol. 51(C), pages 1-12.
    6. Simona Alfiero & Laura Broccardo & Massimo Cane & Alfredo Esposito, 2018. "High Performance Through Innovation Process Management in SMEs. Evidence from the Italian wine sector," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2018(3), pages 87-110.
    7. Fischer, Denise & Greven, Andrea & Tornow, Mark & Brettel, Malte, 2021. "On the value of effectuation processes for R&D alliances and the moderating role of R&D alliance experience," Journal of Business Research, Elsevier, vol. 135(C), pages 606-619.
    8. Liu, Yulong & Yu, Yang, 2018. "Institutions, firm resources and the foreign establishment mode choices of Chinese firms: The moderating role of home regional institutional development," Journal of Business Research, Elsevier, vol. 93(C), pages 111-121.
    9. Nicolas Classen & Martin Carree & Anita Gils & Bettina Peters, 2014. "Innovation in family and non-family SMEs: an exploratory analysis," Small Business Economics, Springer, vol. 42(3), pages 595-609, March.
    10. Maggie Chuoyan Dong & Yulin Fang & Detmar W. Straub, 2017. "The Impact of Institutional Distance on the Joint Performance of Collaborating Firms: The Role of Adaptive Interorganizational Systems," Information Systems Research, INFORMS, vol. 28(2), pages 309-331, June.
    11. Jean, Ruey Jer “Bryan” & Kim, Daekwan & Bello, Daniel C., 2017. "Relationship-based product innovations: Evidence from the global supply chain," Journal of Business Research, Elsevier, vol. 80(C), pages 127-140.
    12. Vendrell-Herrero, Ferran & Bustinza, Oscar F. & Opazo-Basaez, Marco, 2021. "Information technologies and product-service innovation: The moderating role of service R&D team structure," Journal of Business Research, Elsevier, vol. 128(C), pages 673-687.
    13. Mennens, Kars & van Gils, Anita & Odekerken - Schröder, Gaby & Letterie, Wilko, 2016. "Exploring Antecedents of Service Innovation Excellence in Manufacturing SMEs," Research Memorandum 025, Maastricht University, Graduate School of Business and Economics (GSBE).
    14. Graciela Corral de Zubielqui & Noel Lindsay & Wendy Lindsay & Janice Jones, 2019. "Knowledge quality, innovation and firm performance: a study of knowledge transfer in SMEs," Small Business Economics, Springer, vol. 53(1), pages 145-164, June.
    15. Asghar Afshar Jahanshahi & Khaled Nawaser & Alexander Brem, 2019. "The EFFECTS OF CUSTOMER CAPITAL ON CUSTOMER RESPONSE SPEED AND INNOVATIVENESS: THE MEDIATING ROLE OF MARKETING CAPABILITY," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(06), pages 1-25, August.
    16. Estefanía Palazuelos & Ángel Herrero Crespo & Javier Montoya del Corte, 2018. "Effect of perceived default risk and accounting information quality on the decision to grant credit to SMEs," Risk Management, Palgrave Macmillan, vol. 20(2), pages 121-141, May.
    17. Weber, Clarissa E. & Chahabadi, Dominik & Maurer, Indre, 2020. "Antecedents and performance effect of managerial misperception of institutional differences," Journal of World Business, Elsevier, vol. 55(1).
    18. Bader, Benjamin & Berg, Nicola & Holtbrügge, Dirk, 2015. "Expatriate performance in terrorism-endangered countries: The role of family and organizational support," International Business Review, Elsevier, vol. 24(5), pages 849-860.
    19. Roger Moser & Srinath Rengarajan & Gopalakrishnan Narayanamurthy, 2021. "Decision Intelligence: Creating a Fit between Intelligence Requirements and Intelligence Processing Capacities," IIM Kozhikode Society & Management Review, , vol. 10(2), pages 160-177, July.
    20. Solano Acosta, Alexandra & Herrero Crespo, Ángel & Collado Agudo, Jesús, 2018. "Effect of market orientation, network capability and entrepreneurial orientation on international performance of small and medium enterprises (SMEs)," International Business Review, Elsevier, vol. 27(6), pages 1128-1140.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijimxx:v:23:y:2019:i:06:n:s1363919619500506. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijim/ijim.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.