Impact of Resource Based View on New Product Development Process and New Product Success in Manufacturing Sector of Pakistan

Abstract

The present study investigates the impact of resource based view on new product development process and new product success. Additionally, the present research work introduces new product development process as a mediator. One novel dimension has been proposed in the current research i.e., ―New Product Branding Decisions‖. The other constructs (top management facilitation, customer and supplier facilitation) are modified according to the practices of new product development process prevailing in manufacturing sector of Pakistan. The construct of business intelligence of NPD team is also incorporating as a measure of internal resource along with top management facilitation and cross-functional team. Business intelligence of NPD team is another unique dimension of current research which was ignored previously. Based on literature review and identified gaps the present research work has proposed theoretical framework. For data collection, 500 companies were selected based on stratified random sampling technique. Further, on 500 selected companies simple random sampling technique was employed and through it 50 companies were selected in total. To collect data from respondents of 50 selected companies 450 questionnaires were distributed based on purposive sampling technique to the targeted sample (i.e., managers involved in new product development decisions). Whereas, respondents have returned 380 questionnaires from which 328 were usable. For face and content validity of questionnaire expert opinion of marketing professionals and professors associated with the field of business administration, psychology, and linguistics was obtained. Pilot testing was also carried out on 147 sample size. For pilot testing Cronbach‘s Alpha reliability was checked using SPSS, while confirmatory factor analysis was carried out through AMOS. For main analysis validity of all the scales is measured with item-to-total correlation, inter-item correlation, inter- scale correlation, total-scale correlation and factor analysis using exploratory factor analysis, while, the reliability is measured by using Cronbach‘s alpha reliability test. The means of data are compared based on different demographical factors by using Mann-Whitney U test and Kruskal-Wallis test as data was not normal. For main analysis Structural equation modeling (SEM) technique is utilized to measure the model fit as well as to test the hypotheses. However, the assumptions to carry out structural equation modeling were assessed before running SEM. The model fit indices indicated that the proposed theoretical model is very good fit with the data of present study. All the direct relation hypotheses (H1, H2, H3, H4, & H5) were positively and significantly supported by the results of SEM analyses; however, mediating hypotheses H6 and H7 were partially supported. For mediating analysis both Barren and Kenney as well Bootstrapping methods were employed. It was noticed that through both methods partial mediation is approved. Further in this research, study contributions, recommendations, limitations, and possible future implications were discussed. This research has important implications for managers who are involved in new product development decisions that wish to determine the relative importance of utilizing internal and external resources for proficient new product development process in order to achieve new product success. This study is providing fresh and important avenues in new product development literature for research scholars, academia, and industry from developing countries like Pakistan.