Helle Alsted Søndergaard

Market-Oriented New Product Development

Purpose – Aims to ascertain whether a well‐known theory within consumer research – a means‐end chain (MEC) – can be used as a catalyst to achieve market oriented product development.Design/methodology/approach – Describes a case study, involving a Danish food manufacturer, where a MEC approach was introduced to a cross‐functional development team at two different stages of the development process.Findings – Results show that MEC data is perceived as a good way of gaining knowledge about consumers; that the information serves well as the basis of discussions and for keeping project goals fixed. The results also indicate that MEC data are most valuable to the team in the early stages of the development process and that lack of a learning orientation may inhibit the effects of a MEC approach.Originality/value – The MEC approach shows clear advantages for market oriented product development.

Sources of innovation, their combinations and strengths – benefits at the NPD project level

External sourcing is increasingly seen as important for obtaining new and valuable knowledge and resources for new product development. However, when it comes to the specifics of choosing between sources and types of relationships, little is known on the NPD project level. This paper strengthens and expands existing research by investigating how the mix of external partner types as well as the relationship strength is related to performance at the project level. The empirical background is a survey conducted among Danish SMEs in 2010. Ordinary least square regressions reveal that firms should not only consider the potential benefits of collaboration with external sources but also the downsides, including higher cost and lengthier projects. Firms should look for opportunities in the combination of sources if they are to gain advantages of collaboration, as our analyses show that a mix of market and science sources is related to decreased costs. Additionally, if firms are looking for increased market performance, they should aim at collaborating with suppliers that have a similar knowledge base, whereas if the aim is lower project costs, collaboration with a customer with a similar knowledge base is beneficial. However, the degree of novelty in the new product is lower when companies are very closely embedded with suppliers.

The role of employee autonomy for open innovation performance

Purpose The purpose of this paper is to examine how organisational activities that formally provide employees with work autonomy explain the performance of open innovation (OI). Design/methodology/approach The study reports the results of mediation analyses conducted on the basis of survey data from 307 firms. Findings The economic benefits of both inbound and outbound OI are fully captured only if firms provide employees with time, freedom and independence. The results show that employee autonomy fully mediates the relationship between openness and innovation sales, while the adoption of inbound OI is positively associated with the introduction of new products. Practical implications The opening of innovation induces managers to provide employees with discretion, as OI requires high levels of flexibility and experimentation. Originality/value The paper addresses theoretically and empirically the role of job design in the implementation of OI, while also distinguishing between the effects of inbound and outbound practices on innovation performance.