The Value Of Design Strategies For New Product Development: Some Econometric Evidence
AbstractInvestments in design play a potentially significant role in new product development (NPD) although there is little unanimity on the most appropriate or effective design strategy. Previous case-study based studies have identified three alternative design strategies for NPD: design used as a functional specialism, design used as part of a multi-functional team and designer-led NPD. Using data on a sample of Irish manufacturing plants over three periods we are able to examine the effectiveness of each of these three design strategies for NPD novelty and success. Our analysis suggests that design is closely associated with success in NPD performance regardless of the type of strategy pursued. Adopting designer-led NPD, however, is associated with a much greater NPD performance than more functionally-oriented strategies. The effects of design on NPD outcomes are also strongly moderated by other plant characteristics. For example, the beneficial role of design on NPD outputs is only evident for plants which also engage in R&D. Also, while both small and larger plants do gain from using design as a functional specialism and as part of multi-functional teams, the additional benefits of design-leadership in the NPD process are only evident in larger plants.
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Bibliographic InfoPaper provided by Faculty of Economics and Business Administration, University of Tartu (Estonia) in its series University of Tartu - Faculty of Economics and Business Administration Working Paper Series with number 85.
Length: 26 pages
Date of creation: 2012
Date of revision:
design; new product development; design-led manufacturing; Ireland;
Other versions of this item:
- Stephen Roper & James Love & Priit Vahter, 2012. "The value of design strategies for new product development: Some econometric evidence," The Centre for Small and Medium Sized Enterprises Research Paper Series 114, Centre for Small and Medium Sized Enterprises, Warwick Business School, University of Warwick.
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
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