New Product Development Speed: Too Much of a Good Thing?

Journal of Production Innovation Management, Vol. 29, No. 2, pp. 288-303, 2012

16 Pages Posted: 24 Sep 2012 Last revised: 23 Feb 2013

See all articles by Jiyao Chen

Jiyao Chen

Oregon State University

Richard R. Reilly

Stevens Institute of Technology - School of Business

Gary Lynn

Stevens Institute of Technology - School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: September 24, 2012

Abstract

New product development (NPD) speed has become increasingly important for managing innovation in fast-changing business environments. In this work, we question the implicit assumption that speed has a linear relationship with success from the perspectives of time-compression diseconomies and absorptive capacity. We further argue that time-compression diseconomies depend on the levels of uncertainty involved in NPD projects. Using survey data from 471 NPD projects, we found that NPD speed has a reverse U-shaped relationship with new product success, and the nature of the speed–success relationship varies depending on type and level of uncertainty. The findings suggest NPD teams take different time-based strategies in emerging markets versus fast-changing markets. Moreover, NPD teams need to balance how fast they can go with how fast they need to go by considering team and customer absorptive capacity.

Suggested Citation

Chen, Jiyao and Reilly, Richard R. and Lynn, Gary S., New Product Development Speed: Too Much of a Good Thing? (September 24, 2012). Journal of Production Innovation Management, Vol. 29, No. 2, pp. 288-303, 2012. Available at SSRN: https://ssrn.com/abstract=2151404

Jiyao Chen

Oregon State University ( email )

Corvallis, OR 97331
United States
5417376338 (Phone)

Richard R. Reilly

Stevens Institute of Technology - School of Business ( email )

Hoboken, NJ 07030
United States

Gary S. Lynn (Contact Author)

Stevens Institute of Technology - School of Business ( email )

Hoboken, NJ 07030
United States

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