Analysis of new product development between product innovation and product financial performance assessment: a case of Doosheh Dairy Company

Abstract

Recent supply and innovation literature emphasizes the importance of foreign participation in product development. Based on this work flow, this study distinguishes four novel interagency new product development strategies (NPDs) based on two dimensions: the external source “supply chain supplies [SCS] and non-supply chain resources (NSCS)” and the form of interaction (united and purchasing). Using theoretical arguments from a knowledge-based perspective, we compare the effects of these four strategies on product innovation and product financial performance. Therefore, multi-criteria decision-making models are used to find the best inter-organizational strategy for developing a new product conducting a case study. The results indicate that some strategies are more effective to enhance product innovation, while others are more effective in improving product financial performance. In addition, this study shows that there is no distinction between the supply chain and the supply chain effects on product innovation. We also show that interdependence of technology plays an important role in increasing the positive relationship between product innovation and product financial performance. In general, the study suggests that companies need to carefully design their interagency NPD strategies with the various needs of innovation projects.