Technology newness as a mediator of NPD strategy, organizational integration, and NPD performance

This paper explores the NPD strategy/NPD performance and NPD strategy/integration interfaces as they are mediated by the technological newness of products. Our study investigates these research questions: (1) Does NPD strategy development proficiency relate to new product success?; (2) Is NPD strategy development proficiency related to the degree of organizational integration during such projects?; (3) Is NPD strategy development proficiency associated with the resulting degree of R&D/manufacturing task proficiency?; (4) Is NPD strategy development proficiency related to marketing task proficiency?; and (5) Do the relationships noted above vary with the degree of technological newness? Our overall sample consists of 131 new product projects in the medical devices, electrical equipment, and heavy construction equipment industries. Our study was based on a random sample of the firms operating in these three industries. Our study data suggest that for technologically new products, strategy development proficiency is significantly related to the proficiency with which R&D/Mfg and marketing activities are performed. Additionally, we found a strong association between NPD strategy development proficiency and four measures of new product market success. We noted that the degree of technology newness varied between the most and least successful products in our sample. Our study results indicate that there is also a strong relationship between NPD strategy development proficiency and the degree of organizational integration. Finally, our data suggests that the degree of technology newness has mediation characteristics that need to be recognized. We develop implications for scholars and managers.