Title: Operational effectiveness and strategic flexibility: scales for performance assessment of new product development systems

Authors: Petra C. De Weerd-Nederhof, Klaasjan Visscher, Jelmer Altena, Olaf A.M. Fisscher

Addresses: School of Management and Governance, University of Twente, P.O. Box 217, AE Enschede 7500, The Netherlands. ' School of Management and Governance, University of Twente, P.O. Box 217, AE Enschede 7500, The Netherlands. ' School of Management and Governance, University of Twente, P.O. Box 217, AE Enschede 7500, The Netherlands. ' School of Management and Governance, University of Twente, P.O. Box 217, AE Enschede 7500, The Netherlands

Abstract: Many firms attribute a central role to their New Product Development (NPD) function, in speeding up time to market, improving product quality, increasing manufacturing efficiency, building core competence and increasing innovative ability, often all within one and the same NPD system. This balancing of short-term operational effectiveness and longer-term strategic flexibility requires accurate insight in NPD performance on both dimensions. This paper reports on the operationalisation of these constructs based on NPD success literature, using a subdivision in product concept effectiveness and NPD process effectiveness. A validation test of the subjective scales shows good reliability results. Preliminary analysis of test results (n = 29) seems to point at firms trying to both exploit and explore by adapting the NPD process, and the building of dynamic capabilities.

Keywords: new product development; NPD; operational effectiveness; strategic flexibility; performance assessment; success factors.

DOI: 10.1504/IJTM.2008.021044

International Journal of Technology Management, 2008 Vol.44 No.3/4, pp.354 - 372

Published online: 31 Oct 2008 *

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