BUSINESS RESEARCH METHOD (BUS485)

Topic: New product development process

Submitted To: Hanif Mahtab

Name ID
Zaifa Raza 1530266
Asif Shaharia 1430566
Inzamamul Haque Bhuiyan 1430172
Rezwanul Ahmed Sakib 1510119
Md.Tanvir Taosib 1210859

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Table of Contents
Letter of transmittal ................................................................................................................................... 3
Acknowledgement ....................................................................................................................................... 4
Problem Statement...................................................................................................................................... 5
Purpose of the Study ................................................................................................................................... 5
Literature review ........................................................................................................................................ 6
Research Question on the NPD process ................................................................................................ 8
Methodology ................................................................................................................................................ 9
Reliability Analysis ................................................................................................................................. 9
Research design ....................................................................................................................................... 9
Extending research with variables ...................................................................................................... 10
Interpreting our reliability score ............................................................................................................. 11
Conclusion ................................................................................................................................................. 13
References .................................................................................................................................................. 14
Survey Instrument .................................................................................................................................... 15

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Letter of transmittal

30-July-2017
Mr. Hanif Mahtab
Course Instructor
School of Business
Independent University, Bangladesh

Subject: Submission of research.

Dear Sir,

With a great pleasure and interest here we submitting the report, which you have authorized us to
prepare by 30-July-2017.

In this report the content is to prepare a research on new product development process and how
organizations culture as well as customer involvement has its impact
We sincerely hope that you will accept the report and we would be thankful once again if you
give your judicious advice on our effort.

Sincerely,
Asif Shaharia (1430566)
Zaifa Raza (1530266)
Inzamamul Haque Bhuiyan (1430172)
Taskin
Sakib

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Acknowledgement

Apart from the effort made by us, the success of any project depends largely on the
encouragement and guidelines of many others. We take this opportunity to express our gratitude
to the people who have been instrumental in the successful completion of this project.

Our first acknowledgement goes to the almighty Allah for bestowing us the patience and courage
to finish this task with in the deadline. Then we would like to show our greatest appreciation to
our honorable faculty Mr. Hanif Mahtab for constantly guiding us throughout the research.
We feel motivated and encouraged every time we attend his class classes. Without his
encouragement and guidance this project would not be materialized.

The guidance and support received from all the person who contributed and to this project was
vital for the success of the project. We are grateful for their constant support and help.

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Problem Statement

The effect of organization culture on NPD performance remains largely overlooked, possibly due
to difficulty of quantifying and organization culture.

The reawakening and interest in organization culture it still remains overlooked because it
mainly consists of common definition and shared theoretical paradigm. Researchers uses range
of theories so it sometimes lead to disagreements as mentioned in articles

Culture measurement instrument as sometimes definitive and are plagued by many

methodological compromises. Most of the time organizations focuses on technologies to attain
their goal, and most of the time culture is neglected. Sometimes relying too much on customer
can cause lack of innovation and customers have fixed
Photo portrait in their imagination.

Customers have tendencies to compare product with competitors when surveyed. Therefore
actual information or desires of customer becomes hard to decode.

If the customer has to make an effort like spending time and money for the survey or interview
and if it is not facilitated by the firm than chances are customer wont cooperate in the survey.
Therefore lack of effectiveness in data collection.

Purpose of the Study

Even though research is emerging, the knowledge base on the evaluative determinants of the new
product development process in Bangladesh is limited. This paper attempts to narrow this gap by
investigating how organizations culture and customer involvement can effect NPD. Drawing
attention in the areas where customer decision making can benefit the organization or have a
drawback. This research aimed to understand how organizations culture can better the new product
development process.

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Literature review

This research tried make an important contribution to the existing literature on the focused area of
relationships with new product development (NPD).The investigation is to capture and understand
the relationship of organization culture and customer involvement in NPD.

Organization culture according to Needle (2004) organization culture represents the collective
value and beliefs and principle of organization member. Culture include value, norms, system,
language and symbols. The effect of culture on the performance of NPD are tested using regression
analysis. From past researches we have found the factors that effect NPD performance. In Hart
(1995) analysis classified the determinants of NPD performance as either strategically or
operational. Strategic-level variables represents factors related to innovating general approach to
NPD and include organization culture structure and strategy. Project level variables are related to
factors are related to specific NPD projects in consideration which includes NPD processes and
how it performs.

(Hofstede, 1997, 2001) the appeal in organization culture has made a comeback recently. In the
literature few more definition have been recorded in terms of organization culture. Schein (1990)
stated that organization culture as a pattern of basic assumptions that are invented, develop and
discover by a group to deal with problem of external adaption and internal problems. Hofstede,
(1997) define it as a set of shared assumptions that is often unstated. Drennan (1990) define a
organization culture as how things are done in an organization. Lastly Ouchi (1981) and Pascale
and Athos (1982) viewed culture as philosophy that guides an organizations policies towards
employees and customer (Walid Belassi ,Alex Z.kondra & Oya Icmeli Tukel, 2007)

Culture determines why organizations do things the way they usually do, if an organization need
to find out what happened and how the performance was affected focusing on organization culture
can serve the answer it helps us understand why and also improves performance. Peter and
Watermen (1982) deduced that an appropriate organizational culture gave positive outcome.
Actively managing organization culture can result in maximizing performance (Misyer Mohamed
Tajudin;Omar musa & Normaziah Che Musa, 2012). Belassi (2004) considered 218 US
associations to explore the immediate impacts of hierarchical culture as recommended by Hofstede
(2001).

Misyer Mohamed Tajudin; Omar musa & Normaziah Che Musa (2012) cited Kotter and Heskett
(1992) and Van der Post et al (1998) that organizational culture was becoming more important in
determining the success or failure of firms in the next decade. An authoritative culture that
advances business and adapting new skills and abilities may likewise prompt firm innovativeness
(Hurley and Hult, 1998: Liu,Luo and shi,2002),which empowers an organization to accomplish a
more elevated amount of execution and better customer value.

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Any process which increases creativity and innovation is important in building intellectual capital
within a company and which will increase competition. Souder (1981) stated that the role of top
management and their actions in providing organization culture which will promote integration
between functions and avoid dysfunctional Several Disharmony state Misyer Mohamed Tajudin;
Omar musa & Normaziah Che Musa (2012).

Four types of organizational culture effect employee and manager behavior which leads to affect
in NPD is discussed Deshpande, Farley and Webster (1992), Firstly is Clan which emphasize
cohesiveness, participation and teamwork, Secondly is Adhocracies which emphasize
entrepreneurship, creativity, and adaptability, Thirdly is Hierarchies which emphasize order,
uniformity and efficiency. Fourth is emphasize competitiveness and goal achievement.Moorman
(1995) investigated the four cultures proposed by Deshpande, Farley and Webster (1992) has an
important effect on organizational marketing information processes and new product outcomes for
the firm.
Culture within an organization can serve many purposes, including to unify members within an
organization and help create a set of common norms or rules within an organization that employees
follow. If an Organization remains flexible will embrace change and create an environment that
remains open to production and communication. An organization culture that will analytically
support strategy implementation, is one that nurtures a culture of partnership, unity, teamwork and
cooperation among employees. This type of culture will enhance commitment among employees
and focus on NPD. Flexible, strong and unified cultures will approach to implementing in a
positive manner by aligning goals. This may include getting products delivered to customers on
time, and the entire NPD. This will create a domino effect in the organization that ensures that all
work performed by each individual in the company and work group focuses on performance of the
company.

Culture allows organizational leaders to work both individually and as teams to develop strategic
initiatives within the organization. These may include building new partnerships and re-
establishing old ones to continue delivering.In recent events companies have realized that customer
satisfaction is a major key for success. A successful NPD requires understanding of customers
their needs and situation (Karkainen,H.,Piippo,P. & Tuominen,M, 2001).It is valuable to research
that to what extent customers should be involved in NPD and what results in this investment.

(Condit, 1994) In a business the product development process is handled by cross functional teams
but as these have benefits but building of effective teams is difficult due to cultural and
organizational barriers (Lagrosen, 2005).

Priluck (2003) stated that Research has indicated that well managed relations can moderate the
effects of inadequate product performance (Lagrosen, 2005). This shows that developing new
products according to customer wants and requirements will lead to less results in failure. Martin
(1998) proposed that NPD should be seen as an interactive process involving both customer and
supplier as products carry out multiple meanings that are individually perceived (Lagrosen, 2005).

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According to Ford et al (1998) having close relationship with customers is however neither viable
nor desirable .Therefore, the solution to this problem might be developing relations with a few
partner customers that participate actively in NPD whereas other customers merely serve as
sources for supporting information through market research (Lagrosen, 2005).

In a study Gruner and Homberg (2000) have shown that customer involvement in NPD has a
positive outcome on new product success , Hanna et al (1995) also ranked customer involvement
to be essence (Lagrosen, 2005).This does not mean only involving the customer this means the
customers have to be activated little knowledge will not be effective.

Kaulio (1998) proposed a framework that shows customer involvement in two dimensions: It can
be Longitudinal dimension ,which includes points of interaction between customer and design
process and second dimension is Lateral dimension ,which captures the depth of customer
involvement in the design process this can be divided in three ways where the products are
designed based on customer research ,or present a model and the customer reacts upon it or the
customer is actively involved throughout the product design. (Lagrosen, 2005). Although many
tools have been designed for NPD and customer involvement but the awareness and usage is
infrequent (Hanna et al, 1995).

In Stefan Lagrosen (2005) research the author chose few companies to research on the pros and
cons of customer involvement, from his findings we found out that customer involvement and
opinions vary between companies. In the research a company stated that they trust their teams
more than the customers as they lack innovation, they compare products with previous product
and confine the ideas, It may not be desirable for the customer to invest time and money to facilitate
the NPD process. In contrast other companies interact fairly closely with their customers along the
NPD process. Some companies start NPD from customer complaints or ideas and based on the
viewpoints the company generates the product.

Research Question on the NPD process

Q1- Is customer reliable source of retrieving information?

Q2- Researcher follow theories when it comes to cultural issue is there any other way to proceed
other than just theories?

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Methodology

Reliability Analysis

For our new product development process which is our dependent variable, we have two
independent variable one as culture in an organization and another as customer involvement,
where we used qualitative data for your NPD process research. WE couldnt use quantitative
data for our research because there are quantitative data available in these topic.

Culture in an organization varies from one organization to another leading to different new
product development structure/plan. A culture in an organization can be for example be long
going process or a very short process, some companies relies on extensive research where as
others focus on relying on their previous data from their own database.

Customer involvement on the other hand states that relying on customer is good, but too much
relying can lead to manipulative data which on the other hand effect the new product
development process.

Research design

1. Degree of Question Crystallization: We will do formal study as we will collect data from our
sample and will interpret them with research.

2. The Methods of Data Collection: We will use communication study as we will do survey with
questionnaire.
3. Researcher control over variable: We are using experimental study as the researchers affects to
control and manipulate the variables in the study.
4. The Purpose of The Study: We will do causal-explanatory study when one variable produces,
changes another.

5. The Time Dimension: As we will do the study for shorter time, we will select cross-sectional
studies from time dimension.

6. Topical Scope: We will do statistical study as we will study the breath, population inference,
quantities as well as generalizable findings.

7. Research Environment: We will use Field Condition Study as we will do random survey from
customers.

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8. Participants Perceptual Awareness: Modified Routine: By doing the research design, we can
change the perception

Extending research with variables

We developed a questionnaire in order to engage participant in an interview. We conduct interview
on thirty participants.
We had thirty nine questions in our questionnaires which was collect from previous research
papers. We than filled in our answer using likert scale.
The scale is named after its inventor, psychologist Rensis Likert.
(Creative Commons Attribution-ShareAlike License, 2017)

After we have filled in our questionnaire with the help of excel we filled in box with values we
collected from the interview and used an option available in excel called data analysis than
finding correlation of our values.

After we found our correlation we now have identified that from question 1-21 focused on culture
as variable. Here we identified total score of the values and found our mean, standard deviation,
variance and cronbachs alpha to identify score for our question reliability. And question 22-39
focused on customer involvement as variable we calculated reliability test for this on a separate
excel sheet.

For cronbachs alpha we used formula

K = number of participants
St= Variance

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Si =Sum of st. deviation of culture as a variable

Interpreting our reliability score

From Q1-21 which represented values for culture in an organization as variable showed a score of
0.891935

From Q 22-39 which represents value for customer involvement as variable showed a score of
0.924815

So what does 0.89 and 0.92 mean?

Researcher follow a range in order to understand what does the score value represents.
The range are as follows:

Here is our excel sheet calculated value for culture in an organization as a variable

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Here is our excel sheet calculated value for customer involvement as a variable

Therefore in culture in an organization question our reliability score is 0.72 represents as

reasonable data and information can be collected through our questionnaire questions. And in
customer involvement as variable reliability score 0.97 represents very consistent.

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Conclusion

A research helps increase our knowledge and understanding of theory, hypothesis or a scenario and any
issue. We focused on new product development process for our research. This report states how two
independent variable customer involvement and culture in organization affect NPD process which is our
dependent variable. One of the interesting fact of these report is understanding through algorithm
generated data if analyzed with supervision it can lead to better decision making. The necessity of
cronbachs alpha and correlation from answers in questionnaire which we name it as our reliability
score.

We found our reliability score of two of our each independent variable separately. It also helped us
understand if the questionnaire we are following is well structured or not. Focusing our answer to
questionnaire from 30 participants.

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References
Graham R. Massey & Elias Kyriazis. (2005). The effects of organisational structure, interpersonal
trust and communication during new product development projects .

Kim, J. (2010). THE EFFECT OF ORGANIZATIONAL CULTURE ON NEW PRODUCT

DEVELOPMENT MANAGEMENT: A CONTINGENT APPROACH .
Lagrosen, S. (n.d.). Customer involvement in new product development: A relationship marketing
perspective, 2005.

Mons Freng Svendsen ,Trond Hammervoll,Sven A. Haugland and Kjell Grnhaug. (2009).
Marketing Strategy and Customer involvement in product development.

Nguyen, A. D. (2014). CUSTOMER INVOLVEMENT IN NEW PRODUCT DEVELOPMENT

PROCESS .

TAJUDIN, M. M., MUSA, O., & MUS, &. N. (2012). Effect of organization culture,market
orientation,and innovativeness towards new product development.

Walid Belassi,Alex Z. Kondra&Oya Icmeli Tukel. (2007). New Product Development Projects:
The Effects of Organizational Culture.

Wu, A. S. (2013). Utilizing customer knowledge in innovation: antecedents

andimpactofcustomerinvolvementonnewproductperformance.

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Survey Instrument

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