The Effects of Organizational Culture on New Product Development Projects
Dr Walid Belassi.
This study complements existing research by studying the effects of a strategic variable on New Product Performance (NPP). The study uses data collected from 218 U.S. organizations to investigate the effects of organizational culture on the performance of NPD projects. Multivariate regression analysis was used to analyze the collected data. The study uses the dimensions of organizational culture suggested by Hofstede and tests their effects on three performance measure; the commercial outcome of the project; the technical outcome; and level of customer satisfaction. The study shows that organizational culture is a significant determinant of NPP. For organizations to be successful in their NPD attempts they need to foster the right culture. They need to maintain a culture that is results-oriented, open and pragmatic. Moreover, organizations that have lower degree of risk avoidance and power distance tend to be more successful in developing new products than their counterparts. Collectivism, job orientation, loose control (versus tight control), and parochial versus professional cultures have no significant effect on NPD projects performance. This study only presents the direct effects of organizational culture on performance. The total effects of organizational culture are expected to be even more significant. Organizational culture is expected to affect project level variables such as the project structure used, the project manager and the project team, which in turn affect the success or failure of NPD projects. The authors in another study are currently investigating the effects of organizational culture on project level variables.
Dr Walid Belassi (Canada)
School of Business
Dr. Walid Belassi is an Assistant Professor of Management Science at the School of Business, Athabasca University, Canada. His research interests include: new product development, project management and advanced manufacturing technology. Dr. Belassi obtained his Ph.D. in Business Administration with concentration in Operations Management and Business Statistics from Cleveland State University, Cleveland, Ohio. His research has been published in the International Journal of Project Management and Omega.
(30 min. Conference Paper, English)