TY - JOUR
T1 - Crisis management in new product development
T2 - A tale of two stories
AU - Samra, Yassir M.
AU - Zhang, Haisu
AU - Lynn, Gary S.
AU - Reilly, Richard R.
N1 - Publisher Copyright:
© 2018 Elsevier Ltd
PY - 2019/12
Y1 - 2019/12
N2 - This research examines how firms manage crises in new product development (NPD), and suggests that a high level of perceived crisis can result in better new product performance. In addition, the role of team communication is underlined in the relationship between perceived crisis and new product performance. Team communication is categorized into two types: formal vs. informal, each playing a distinct role in crisis management. More importantly, this study argues that there exist dual routes in the crisis-performance relationship: mediation and moderation. A survey study is implemented for hypothesis testing, and data is collected from 119 NPD teams in high-tech industries. Results show that formal communication partially mediates the relationship between perceived crisis and new product performance, and that there is also a direct effect of perceived crisis on performance. Meanwhile, formal communication negatively moderates the direct effect of perceived crisis on new product performance, while informal communication positively moderates this effect. The co-existence of mediation and moderation results in a managerial dilemma regarding formal communication: it positively mediates but negatively moderates the crisis-performance link. Findings suggest that informal communication can play a complementary role in offsetting the negative influence of formal communication.
AB - This research examines how firms manage crises in new product development (NPD), and suggests that a high level of perceived crisis can result in better new product performance. In addition, the role of team communication is underlined in the relationship between perceived crisis and new product performance. Team communication is categorized into two types: formal vs. informal, each playing a distinct role in crisis management. More importantly, this study argues that there exist dual routes in the crisis-performance relationship: mediation and moderation. A survey study is implemented for hypothesis testing, and data is collected from 119 NPD teams in high-tech industries. Results show that formal communication partially mediates the relationship between perceived crisis and new product performance, and that there is also a direct effect of perceived crisis on performance. Meanwhile, formal communication negatively moderates the direct effect of perceived crisis on new product performance, while informal communication positively moderates this effect. The co-existence of mediation and moderation results in a managerial dilemma regarding formal communication: it positively mediates but negatively moderates the crisis-performance link. Findings suggest that informal communication can play a complementary role in offsetting the negative influence of formal communication.
KW - Crisis
KW - Formal communication
KW - Informal communication
KW - New product development
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U2 - 10.1016/j.technovation.2018.06.001
DO - 10.1016/j.technovation.2018.06.001
M3 - Article
AN - SCOPUS:85048163849
SN - 0166-4972
VL - 88
JO - Technovation
JF - Technovation
M1 - 102038
ER -