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New Product Development and Innovation in the Maquiladora Industry: A Causal Model

Author

Listed:
  • Jorge Luis García-Alcaraz

    () (Department of Industrial and Manufacturing Engineering, Autonomous University of Ciudad Juárez, Ciudad Juárez 32310, Mexico)

  • Aidé Aracely Maldonado-Macías

    () (Department of Industrial and Manufacturing Engineering, Autonomous University of Ciudad Juárez, Ciudad Juárez 32310, Mexico)

  • Sandra Ivette Hernández-Hernández

    () (Department of Industrial and Manufacturing Engineering, Autonomous University of Ciudad Juárez, Ciudad Juárez 32310, Mexico)

  • Juan Luis Hernández-Arellano

    () (Department of Industrial and Manufacturing Engineering, Autonomous University of Ciudad Juárez, Ciudad Juárez 32310, Mexico)

  • Julio Blanco-Fernández

    () (Department of Mechanical Engineering, University of La Rioja, La Rioja 26004, Spain)

  • Juan Carlos Sáenz Díez-Muro

    () (Department of Electric Engineering, University of La Rioja, La Rioja 26004, Spain)

Abstract

Companies seek to stand out from their competitors and react to other competitive threats. Making a difference means doing things differently in order to create a product that other companies cannot provide. This can be achieved through an innovation process. This article analyses, by means of a structural equation model, the current situation of Mexican maquiladora companies, which face the constant challenge of product innovation. The model associates three success factors for new product development (product, organization, and production process characteristics as independent latent variables) with benefits gained by customers and companies (dependent latent variables). Results show that, in the Mexican maquiladora sector, organizational characteristics and production processes characteristics explain only 31% of the variability (R 2 = 0.31), and it seems necessary to integrate other aspects. The relationship between customer benefits and company benefits explains 58% of the variability, the largest proportion in the model (R 2 = 0.58).

Suggested Citation

  • Jorge Luis García-Alcaraz & Aidé Aracely Maldonado-Macías & Sandra Ivette Hernández-Hernández & Juan Luis Hernández-Arellano & Julio Blanco-Fernández & Juan Carlos Sáenz Díez-Muro, 2016. "New Product Development and Innovation in the Maquiladora Industry: A Causal Model," Sustainability, MDPI, Open Access Journal, vol. 8(8), pages 1-18, July.
  • Handle: RePEc:gam:jsusta:v:8:y:2016:i:8:p:707-:d:74635
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    References listed on IDEAS

    as
    1. Sargent, John & Matthews, Linda, 2006. "The drivers of evolution/upgrading in Mexico's maquiladoras: How important is subsidiary initiative?," Journal of World Business, Elsevier, vol. 41(3), pages 233-246, September.
    2. Mollick, Andre Varella & Wvalle-Vazquez, Karina, 2006. "Chinese competition and its effects on Mexican maquiladoras," Journal of Comparative Economics, Elsevier, vol. 34(1), pages 130-145, March.
    3. Benedikt Heid & Mario Larch & Alejandro Riaño, 2013. "The Rise of the Maquiladoras: A M ixed Blessing," Review of Development Economics, Wiley Blackwell, vol. 17(2), pages 252-267, May.
    4. Sargent, John & Matthews, Linda, 2009. "China versus Mexico in the Global EPZ Industry: Maquiladoras, FDI Quality, and Plant Mortality," World Development, Elsevier, vol. 37(6), pages 1069-1082, June.
    5. Grosse, Robert & Mudd, Shannon & Garcia Cerchiari, Cecilio, 2013. "Exporting to the far and near abroad," Journal of Business Research, Elsevier, vol. 66(3), pages 409-416.
    6. Cheng, Cheng-Feng & Chang, Man-Ling & Li, Chu-Shiu, 2013. "Configural paths to successful product innovation," Journal of Business Research, Elsevier, vol. 66(12), pages 2561-2573.
    7. Verworn, Birgit, 2009. "A structural equation model of the impact of the "fuzzy front end" on the success of new product development," Research Policy, Elsevier, vol. 38(10), pages 1571-1581, December.
    8. Utar, Hale & Ruiz, Luis B. Torres, 2013. "International competition and industrial evolution: Evidence from the impact of Chinese competition on Mexican maquiladoras," Journal of Development Economics, Elsevier, vol. 105(C), pages 267-287.
    9. Schaarschmidt, Mario & Kilian, Thomas, 2014. "Impediments to customer integration into the innovation process: A case study in the telecommunications industry," European Management Journal, Elsevier, vol. 32(2), pages 350-361.
    10. Karkkainen, Hannu & Piippo, Petteri & Tuominen, Markku, 2001. "Ten tools for customer-driven product development in industrial companies," International Journal of Production Economics, Elsevier, vol. 69(2), pages 161-176, January.
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    More about this item

    Keywords

    innovation; new product development; structural equation model; company benefits; customer benefits;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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