IMPLEMENTING NEW PRODUCT DEVELOPMENT: A STUDY OF PERSONAL CHARACTERISTICS AMONG MANAGERS
Abstract
Strategy implementation is an important aspect of innovation, as only 30% of planned strategies are matched by realised innovation outcomes. The present study investigates this in a setting of strategic implementation of New Product Development (NPD). In the implementation process, the managers’ characteristics are what lead to successful implementation of NPD. Managers’ characteristics affect the decision outcome. This study incorporates curiosity as a personal trait and NPD experience as a personal characteristic of the manager as moderating effects of the strategy implementation process of NPD. 131 NPD managers of Scandinavia SBUs participated in the study. Data were analysed using partial least squares regression. The study finds that managers influence the realised NPD strategy. NPD managers impose competence traps on strategy implementation. Curious NPD managers implementing aggressive strategic intentions create information overload in the NPD process, which decreases the new product novelty. In contrast, realisation of defensive strategic intentions makes experienced NPD managers focus on known NPD competences, thereby decreasing the new product novelty of NPD efforts. The study identified inadequately developed information competences among NPD managers. The result shows the importance of analysing how personal characteristics facilitate or hinder NPD strategy implementation. The competitive advantage of NPD efforts relies on such an analysis.
