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THE IMPACT OF THE USE OF INTERNET-BASED TECHNOLOGIES ON NEW PRODUCT DEVELOPMENT PERFORMANCE DANUTA DE GROSBOIS, B.A. (Honours), M.S., M.A. A thesis submitted to the Faculty of Graduate Studies and Research in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Management Eric Sprott School of Business Carleton University Ottawa, Ontario © Copyright Danuta de Grosbois, 2007 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 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The author retains copyright L'auteur conserve la propriete du droit d'auteur ownership and moral rights in et des droits moraux qui protege cette these. this thesis. Neither the thesis Ni la these ni des extraits substantiels de nor substantial extracts from it celle-ci ne doivent etre imprimes ou autrement may be printed or otherwise reproduits sans son autorisation. reproduced without the author's permission. In compliance with the Canadian Conformement a la loi canadienne Privacy Act some supporting sur la protection de la vie privee, forms may have been removed quelques formulaires secondaires from this thesis. ont ete enleves de cette these. While these forms may be includedBien que ces formulaires in the document page count, aient inclus dans la pagination, their removal does not represent il n'y aura aucun contenu manquant. any loss of content from the thesis. i * i Canada Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ABSTRACT Faced with the rapidly changing environment and the necessity to effectively manage the collaborative nature of product development, numerous firms invest in Internet-based technologies (IBT) to support their innovation activity. However, despite the vast theoretical and case-study-based research in the literature regarding the alleged role of Internet-based technologies in new product development (NPD), there is no systematic large-scale empirical evidence which would confirm that the use of Internet-based technologies leads to improvement of NPD performance. In order to address this issue, this thesis examined the impact of the Internet-based technology use on NPD performance. First, a novel conceptualization and definition of IBT use construct was proposed. Internet-based technology use in NPD project was defined as the extent to which the project team deploys Internet-based technologies to support NPD project activities and processes. It was conceptualized as a four dimensional construct, each of the dimensions reflecting a domain of application of the technology. Next, based on an extensive review of the literature a research model was developed proposing that IBT use has a positive impact on NPD performance. It was further hypothesized that this impact is indirect and takes place through improvement of communication quality, effectiveness of team learning and team integration. In order to test the model, data was collected by means of a questionnaire. The sampling frame comprised of managers of product development projects from Canadian and American manufacturing companies operating in high-tech industries. The questionnaire was completed by 278 respondents. Based on the collected data, the theoretical framework was evaluated using structural equation modeling approach. IBT use was found to be significant contributor to all three dimensions of NPD performance: product quality, time-to-market and development cost. The hypothesized indirect nature of this relationship was also confirmed. The total impact of IBT use on NPD performance was found to be significantly higher for projects devoted to development of highly innovative products and for projects executed by global teams. This thesis contributed to the theory by synthesizing and extending previously disparate studies to develop a unified model of Internet-based technology use in NPD and by testing this model empirically. ii Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ACKNOWLEDGEMENTS The completion of this dissertation was accomplished with the encouragement and support of many people. First and foremost, I would like to express my gratitude to my supervisor, Dr. Uma Kumar, for providing me with continuous guidance throughout the whole process of completing my Ph.D. studies. I am really grateful for her patience, encouragement, and faith in me and my abilities. I would also like to thank my examination committee members: Dr. Vinod Kumar, Dr. Ronald Thomas, Dr. Shibu Pal and Dr. John Medcof for their constructive suggestions and valuable inputs for my thesis. I would like to gratefully acknowledge the financial support from Carleton University as well as an award from the Ontario Graduate Scholarship Program. My special thanks to Jean Blair and Janice Walker who have provided me with the best possible administrative support. Finally, I would like to express many heartfelt thanks to my family and friends for their constant support, encouragement and understanding. iii Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. TABLE OF CONTENTS ABSTRACT.......................................................................................................................... ii ACKNOWLEDGEMENTS.............................................................................................. iii LIST OF TABLES............................................................................................................viii LIST OF FIGURES............................................................................................................ix LIST OF APPENDICES....................................................................................................xi CHAPTER 1 INTRODUCTION........................................................................................1 CHAPTER 2 LITERATURE REVIEW......................................................................... 11 2.1 Introduction ............................................................................................................... 11 2.2 Research on New Product Development ............................................................... 12 2.2.1 Basic Concepts .....................................................................................................12 2.2.1.1 NPD Process.................................................................................................12 2.2.1.2 NPD Performance ........................................................................................ 19 2.2.2 New Product Development as a Joint Effort .................................................... 25 2.2.2.1 Product Development Team .......................................................................25 2.22.2 Interorganizational Relationships .............................................................. 28 2.2.2.3 Collaboration Process ..................................................................................30 2.2.3 Collaboration Facilitators ................................................................................... 36 2.2.3.1 Team Integration .......................................................................................... 36 2.2.3.2 Effectiveness of Team Learning ................................................................ 44 2.2.3.3 Communication Quality...............................................................................51 2.3 Research on the Use of Internet-based Technologies in New Product Development Context ..............................................................................................56 2.3.1 Evolution and Classification of Internet-based Technologies for NPD 56 2.3.1.1 Network Infrastructure ................................................................................ 58 2.3.1.2 T eleworking..................................................................................................60 2.3.1.3 Communication Technologies ....................................................................60 2.3.1.4 Shared Information Space Technologies ...................................................62 2.3.1.5 Project Management Technologies ............................................................ 63 2.3.1.6 Integrated Products ......................................................................................63 2.3.2 The Use of Internet-based Technologies in NPD Projects ............................. 65 iv Reproduced