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Organisational culture factors- how

do they affect NPD outcome in a


manufacturing organization?
Dr Shameem
Dr K Rajeshwari
Definitions
• New product- six classifications
-Minor modifications and repositioning(60-
70% )
• NPD Outcome- Consumer/technical or
financial
• Organisational or internal factors
-Higher non-replicable advantage
Literature review summary
• Steps in new product development
-Booz, Allen and Hamilton (1982)
-R Cooper ( 1991)
• New product outcome measurement
- S Hart ( 1999)
• Entrepreneurial orientation strongly related to
NPD
• Research methodology in NPD
-Quantitative; no entrepreneurial representation in
FMCG; No holistic FMCG; cross functional
representation absent.
Research objectives
• Understand how organizational cultural factors
affect NPD outcome in a manufacturing
industry?
Research methodology
Research Methodology Research Objective

Literature Review Understand the various aspects of new product


development across industries, with specific focus on
manufacturing.

Exploratory- Focus group discussion Explore what maybe the factors affecting new product
outcome in a manufacturing organization , from a org
culture point of view
Indepth case study Arrive at a comprehensive list of factors ,

Factor analysis To arrive at top five factors and understand them in


detail
In-depth case study
• Aim-Explore what maybe the factors affecting new
product outcome in a manufacturing organization ,
from a org culture point of view
• Key Authors-Siggelkow(2007); Robert Yin (2001);
Eisenhardt(1989)
George and Bennett ( 2005)
• Single case with another similar one for cross case
validation
• In-depth interviews, artifacts, documents, websites,
written briefs, observations.
• Grounded Theory data analysis ( Strauss and Corbin,
2014)
Emergent sampling-interviews
Function No. of respondents
R and D 3
Packaging 3
Production/Logistics 3
Sales 3
Marketing 5
Market Research/ Ad agency 5
Finance 2
Human Resource 2
Trade/Distributor 2
Consumers 4
TOTAL 32
CASE ANALYSIS
Hennink,Hutter,Bailey,2011
Gibson and Brown,2009|
Strauss and Corbin, 2014
Company - transcripts
Steps involved in case analysis
• Transcribing data
• Arriving at codes/conceptual codes
• Thick description of research answers based on
above
• Comparison task ( embedded units within case
and cross case analysis)
• Hypothesis development
Interview transcript sample

• Ms Meenakshi( R and D, Fairever, Cavinkare)

“But over a period of time, Fairever product


has improved significantly over Fair and
Lovely; today formulation gets blind product
tested- we get significant win among
consumers but we have limitations in
formulation- based on consumer needs/we
need a particular product base…
Transcript Analysis

1. Frequent words- Product, consumer ( 3 times each)
2. Message about product- Fairever product has
improved but needs more work.
• 3. Message about consumer-The consumers are very
important in Fairever product development. They guide
the product development?
• 4.Form codes and conceptual codes based on
relationships among them
• 5. Theoretical sampling to validate/ take forward the
above
Theory development
• Developing Theory( codes, categories)

• Refining Theory ( compare explanations,


explicit mention by participants, outliers,
negative cases, refer literature)

• Verifying Theory ( Repeated explanations,


return to data, test with alternative theory,
share results with participants)
Hypothesis- an example
Org culture aspect Hypothesis ( first case) Second case

Tolerance to failure Allowing employees to Full Support


fail in new product
development improves
NPD outcome positively
Next step-Factor analysis
320 sample- NPD executives

Variables
from
Literature

Variables
from case
study

Reduced to three factors


Factor analysis output
• Organisational culture factors
-Tolerance to failure
-Risk non aversion
etc..
• Across functional roles
Will also be captured
Academic Contribution
-Across Theoretical, Methodological and
Empirical aspects
-Detailed understanding of NPD in
manufacturing Indian company
-Hypotheses for future theory building
-Org culture factors across manufacturing
industry and across functional roles within
that.
Managerial Contribution

- Rich understanding of manufacturing NPD


process and success factors
-Resource prioritization across success factors
in an organizational context
-customized NPD strategy for various
departments
Limitations and Future research
Limitations
• Definition of new product outcome
• Org culture factors only

Future research
-Theory building from Hypotheses arising out of case
study
-Study more manufacturing companies across employee
size, turnover and ownership variables
-Confirmatory factor analysis based on generated factors

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