The Impact of IT Usage on Collaborative New Product Development Performance

Abstract

Fast introduction of new products at low cost is essential for being successful in today’s industrial business environment. New product development (NPD) practitioners increasingly rely on information technology (IT) aiming to achieve lower costs, higher quality, and greater speed to market. A little is known about the effect of various IT tools on NPD performance and exploring this would ease effective deployment of IT resources in innovation programmes. This study uses data collected in Product Development Management Association’s 2012 Comparative Performance Assessment Study, from 453 firms across different countries and industries. Direct and indirect effects of four types of IT tools on financial and time performance of NPD projects are examined using partial least squares path analysis. Results suggest that three IT types indirectly improve NPD performance by increasing collaboration, although no direct impact tested is significant. The study implies that extensive use of IT tools significantly contributes to improve collaboration which is vital for reducing development times and increasing financial returns of NPD projects.