Please answer these questions: 1. A brief summary of the article. 2. How well is the engineering managment problem addressed in the paper defined? What was the source of data that the author to investigate the problem? Contingency theory argues that there is no universal set of strategies applicable to all businesses (Ginsberg & Venkatraman, 1985; Lawrence & Lorsch, 1967). Indeed, this theory considers organization as an open system which internal and external environment play important role in its strategies (Hoffer, 1975; Schoonhoven, 1981). The traditional contingency research frameworks concentrate on the effect of internal and external environment factors (contingency variables) on the association between independent and dependent variables (Sousa & Voss, 2008). This effect is operationalized as the effect of interaction between contingency and independent variables on dependent variable. A positive interaction effect implies to the positive role of contingency variable while a negative interaction implies to negative role of it in the independent-dependent variables association. In this study, we consider PDMP, PDTP (internal environment) and TU (external environment) as contingency variables in the relationship between CP and NPD performance. Following subsections describe theoretical background and develop hypotheses about these variables. 2.2.1. Proficiency in NPD According to the Resource-Based View (RBV) of firms, critical resources owned by firms determine their competitive excellence and superior performance. RBV indicates that “Valuable, Rare, Inimitable and Non-substitutable (VRIN)” resources of firms enable them to overcome competitors (Barney, 1991). The resources that firms allocate to their NPD process could be considered as such critical resources that cause to product development proficiency (Xiao & Zhang, 2021). This proficiency implies to the knowledge, skill, and efficacy of firms in executing activities of the NPD process (Li & Huang, 2012). Proficiency in executing all stages of the NPD process (i.e., developing and screening ideas, analyzing of business and market opportunities, technical developing, testing and commercializing of product) has important role in the NPD process (Kleinschmidt & Cooper, 1991). In the literature, there are two common approaches in investigating the role of PDP in the NPD process. In the first approach, researchers have considered PDP as a single construct reflecting proficiency in the all stages of the NPD process (Hong, Song, & Yoo, 2013; M.S, Anand, & Paul, 2021; Sandvik, Arnett, & Sandvik, 2011). In the second approach, researchers have viewed product development proficiency as comprising marketing proficiency and technical proficiency (K. B. Lee & Wong, 2011; Li & Huang, 2012; X. M. Song & Parry, 1997). In this study, we consider PDP as two constructs: PDMP and PDTP (i.e., second approach). PDMP implies to proficiency in performing market-related activities of the NPD process (such as evaluation of customers and competitors, specifying characteristics and trends of market (K. B. Lee & Wong, 2010)). This proficiency of firm originates from resources allocated to marketing stages of NPD. We argue that PDMP of firm strengthens the positive effect of CP on NPD performance. PDMP empowers voice of customer in the NPD process (Xiao & Zhang, 2021). High PDMP enables firm to create various communication channels with customer. When customer participates in the NPD process, these channels facilitate information sharing between customer and firm and improves NPD performance. In addition, firm with high level of PDMP will be able to easily understand needs and preferences of customers. When customer participates in the NPD process, this ability reduces the lack of mutual understanding about new product between customer and firm and causes to NPD performance improvement. Therefore, H2. PDMP positively moderates the effect of CP on NPD performance. PDTP refers to proficiency in execution of technical-related activities of the NPD process (such as carrying out technical and manufacturing assessments, testing of product (K. B. Lee & Wong, 2010)). Resources allocated to technical stages of NPD determine PDTP of firm. We theorize that PDTP positively moderates the positive effect of CP on NPD performance. When customer participates as co-developer in the NPD process, it provides technical and design skills (solution-related knowledge) to firm. High level of PDTP enables firm to easily acquire and exploit this knowledge and achieve to successful new product. In addition, PDTP facilitates definition of products’ requirements and specifications (K. B. Lee & Wong, 2012). This factor reduces the lack of mutual understanding between customer and firm in co-developing new product and leads to better NPD performance. Finally, PDTP enables firm to predict the technological changes’ path and technological shifts’ timing and makes it possible to respond them proactively (K. B. Lee & Wong, 2010).

Please answer these questions: 1. A brief summary of the article. 2. How well is the engineering managment problem addressed in the paper defined? What was the source of data that the author to investigate the problem? Contingency theory argues that there is no universal set of strategies applicable to all businesses (Ginsberg & Venkatraman, 1985; Lawrence & Lorsch, 1967). Indeed, this theory considers organization as an open system which internal and external environment play important role in its strategies (Hoffer, 1975; Schoonhoven, 1981). The traditional contingency research frameworks concentrate on the effect of internal and external environment factors (contingency variables) on the association between independent and dependent variables (Sousa & Voss, 2008). This effect is operationalized as the effect of interaction between contingency and independent variables on dependent variable. A positive interaction effect implies to the positive role of contingency variable while a negative interaction implies to negative role of it in the independent-dependent variables association. In this study, we consider PDMP, PDTP (internal environment) and TU (external environment) as contingency variables in the relationship between CP and NPD performance. Following subsections describe theoretical background and develop hypotheses about these variables. 2.2.1. Proficiency in NPD According to the Resource-Based View (RBV) of firms, critical resources owned by firms determine their competitive excellence and superior performance. RBV indicates that “Valuable, Rare, Inimitable and Non-substitutable (VRIN)” resources of firms enable them to overcome competitors (Barney, 1991). The resources that firms allocate to their NPD process could be considered as such critical resources that cause to product development proficiency (Xiao & Zhang, 2021). This proficiency implies to the knowledge, skill, and efficacy of firms in executing activities of the NPD process (Li & Huang, 2012). Proficiency in executing all stages of the NPD process (i.e., developing and screening ideas, analyzing of business and market opportunities, technical developing, testing and commercializing of product) has important role in the NPD process (Kleinschmidt & Cooper, 1991). In the literature, there are two common approaches in investigating the role of PDP in the NPD process. In the first approach, researchers have considered PDP as a single construct reflecting proficiency in the all stages of the NPD process (Hong, Song, & Yoo, 2013; M.S, Anand, & Paul, 2021; Sandvik, Arnett, & Sandvik, 2011). In the second approach, researchers have viewed product development proficiency as comprising marketing proficiency and technical proficiency (K. B. Lee & Wong, 2011; Li & Huang, 2012; X. M. Song & Parry, 1997). In this study, we consider PDP as two constructs: PDMP and PDTP (i.e., second approach). PDMP implies to proficiency in performing market-related activities of the NPD process (such as evaluation of customers and competitors, specifying characteristics and trends of market (K. B. Lee & Wong, 2010)). This proficiency of firm originates from resources allocated to marketing stages of NPD. We argue that PDMP of firm strengthens the positive effect of CP on NPD performance. PDMP empowers voice of customer in the NPD process (Xiao & Zhang, 2021). High PDMP enables firm to create various communication channels with customer. When customer participates in the NPD process, these channels facilitate information sharing between customer and firm and improves NPD performance. In addition, firm with high level of PDMP will be able to easily understand needs and preferences of customers. When customer participates in the NPD process, this ability reduces the lack of mutual understanding about new product between customer and firm and causes to NPD performance improvement. Therefore, H2. PDMP positively moderates the effect of CP on NPD performance. PDTP refers to proficiency in execution of technical-related activities of the NPD process (such as carrying out technical and manufacturing assessments, testing of product (K. B. Lee & Wong, 2010)). Resources allocated to technical stages of NPD determine PDTP of firm. We theorize that PDTP positively moderates the positive effect of CP on NPD performance. When customer participates as co-developer in the NPD process, it provides technical and design skills (solution-related knowledge) to firm. High level of PDTP enables firm to easily acquire and exploit this knowledge and achieve to successful new product. In addition, PDTP facilitates definition of products’ requirements and specifications (K. B. Lee & Wong, 2012). This factor reduces the lack of mutual understanding between customer and firm in co-developing new product and leads to better NPD performance. Finally, PDTP enables firm to predict the technological changes’ path and technological shifts’ timing and makes it possible to respond them proactively (K. B. Lee & Wong, 2010).

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Please answer these questions:

1. A brief summary of the article.

2. How well is the engineering managment problem addressed in the paper defined?

What was the source of data that the author to investigate the problem?

Contingency theory argues that there is no universal set of strategies applicable to all
businesses (Ginsberg & Venkatraman, 1985; Lawrence & Lorsch, 1967). Indeed, this theory
considers organization as an open system which internal and external environment play
important role in its strategies (Hoffer, 1975; Schoonhoven, 1981). The traditional contingency
research frameworks concentrate on the effect of internal and external environment factors
(contingency variables) on the association between independent and dependent variables (Sousa
& Voss, 2008). This effect is operationalized as the effect of interaction between contingency
and independent variables on dependent variable. A positive interaction effect implies to the
positive role of contingency variable while a negative interaction implies to negative role of it in
the independent-dependent variables association. In this study, we consider PDMP, PDTP
(internal environment) and TU (external environment) as contingency variables in the
relationship between CP and NPD performance. Following subsections describe theoretical
background and develop hypotheses about these variables.
2.2.1. Proficiency in NPD
According to the Resource-Based View (RBV) of firms, critical resources owned by firms
determine their competitive excellence and superior performance. RBV indicates that “Valuable,
Rare, Inimitable and Non-substitutable (VRIN)” resources of firms enable them to overcome
competitors (Barney, 1991). The resources that firms allocate to their NPD process could be
considered as such critical resources that cause to product development proficiency (Xiao &
Zhang, 2021). This proficiency implies to the knowledge, skill, and efficacy of firms in
executing activities of the NPD process (Li & Huang, 2012). Proficiency in executing all stages
of the NPD process (i.e., developing and screening ideas, analyzing of business and market
opportunities, technical developing, testing and commercializing of product) has important role
in the NPD process (Kleinschmidt & Cooper, 1991). In the literature, there are two common
approaches in investigating the role of PDP in the NPD process. In the first approach, researchers
have considered PDP as a single construct reflecting proficiency in the all stages of the NPD
process (Hong, Song, & Yoo, 2013; M.S, Anand, & Paul, 2021; Sandvik, Arnett, & Sandvik,
2011). In the second approach, researchers have viewed product development proficiency as
comprising marketing proficiency and technical proficiency (K. B. Lee & Wong, 2011; Li & Huang, 2012; X. M. Song & Parry, 1997). In this study, we consider PDP as two constructs:
PDMP and PDTP (i.e., second approach).
PDMP implies to proficiency in performing market-related activities of the NPD process
(such as evaluation of customers and competitors, specifying characteristics and trends of market
(K. B. Lee & Wong, 2010)). This proficiency of firm originates from resources allocated to
marketing stages of NPD. We argue that PDMP of firm strengthens the positive effect of CP on
NPD performance. PDMP empowers voice of customer in the NPD process (Xiao & Zhang,
2021). High PDMP enables firm to create various communication channels with customer. When
customer participates in the NPD process, these channels facilitate information sharing between
customer and firm and improves NPD performance. In addition, firm with high level of PDMP
will be able to easily understand needs and preferences of customers. When customer
participates in the NPD process, this ability reduces the lack of mutual understanding about new
product between customer and firm and causes to NPD performance improvement. Therefore,
H2. PDMP positively moderates the effect of CP on NPD performance.
PDTP refers to proficiency in execution of technical-related activities of the NPD process
(such as carrying out technical and manufacturing assessments, testing of product (K. B. Lee &
Wong, 2010)). Resources allocated to technical stages of NPD determine PDTP of firm. We
theorize that PDTP positively moderates the positive effect of CP on NPD performance. When
customer participates as co-developer in the NPD process, it provides technical and design skills
(solution-related knowledge) to firm. High level of PDTP enables firm to easily acquire and
exploit this knowledge and achieve to successful new product. In addition, PDTP facilitates
definition of products’ requirements and specifications (K. B. Lee & Wong, 2012). This factor
reduces the lack of mutual understanding between customer and firm in co-developing new
product and leads to better NPD performance. Finally, PDTP enables firm to predict the
technological changes’ path and technological shifts’ timing and makes it possible to respond
them proactively (K. B. Lee & Wong, 2010).

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