NPD process formality across global regions

Abstract

Purpose The paper aims to address the issue of generalizability by examining process formality across the global regions of North America, Europe and Asia. A common prescription in the new product development (NPD) discipline is to employ a formal process. Because generalizability of this prescription has not been fully investigated across global regions, the present manuscript addresses the issue of generalizability by examining process formality across the global regions of North America, Europe and Asia. Design/methodology/approach Recently made available to researchers, data of the Product Development and Management Association’s 2012 Comparative Performance Assessment Study (CPAS) were analyzed. The uniqueness of the 2012 CPAS data set is its global composition with sizable samples from North America, Europe and Asia. Chi-square tests and multivariate analysis of variance were applied. Findings Results support use of a formal process, as companies with a formal NPD process perceived higher performance than companies with no standard process. Process formality appears to differ across regions and be influenced by innovation strategy. European firms tended to not use a formal process when pursuing radical innovation, and these firms perceived higher performance. North American firms tended to not use a formal process when pursing incremental innovation, but these firms perceived lower performance. Practical implications Having some NPD process is generally better than not having any process at all. Process differences across regions appear to exist when pursuing radical innovation or incremental innovation. Originality/value This is one of few studies comparing global regions to examine generalizability of a best practice prescription, namely, the extent to which a formal process should be implemented.