Dynamic capabilities of new product development teams in performing radical innovation projects

Abstract

Purpose This paper aims to examine the impact of dynamic capabilities of new product development (NPD) team on project performance, including efficiency and effectiveness. Design/methodology/approach Data were collected from NPD team members who have worked on radical new product projects in large manufacturing firms in Thailand. Respondents represented different departments, including research and development (R&D), quality control, production and marketing. These individuals worked in a wide range of large manufacturing industries with an average of more than 500 employees. These industries include food, automotive, auto parts and electric and electronics products. Findings The results indicate that NPD team with sensing, learning and integrating capabilities can increase project effectiveness. In addition, teams with high learning, integrating and coordinating capabilities will enhance project efficiency. Research limitations/implications First, the research findings may not be generalizable in all aspects to other industries. Second, the use of cross-sectional data in this study may not be appropriate for testing causal relationships among constructs. Third, although the samples of this study were from a wide range of functional areas, the majority were R&D personnel. Practical implications To improve project effectiveness, project managers should consider investing in information technologies that provide a wide range of information sources, such as business research databases and academic journals. To improve project efficiency, the managers can establish both formal and informal activities during NPD projects. These social activities can provide opportunities for team members to physically meet and adjust their personal behavior to get along with each other. Originality/value These findings provide a wider picture of the beneficial role of dynamic capabilities of NPD teams toward project performance, including efficiency and effectiveness.