A Study of Cross-Functional Teams in the New Product Development Process

This paper presents an exploratory model of the NPD process, a cross-functional NPD team and NPD performance. The construct of the NPD process includes eight items, whilst that of the NPD team includes five. The NPD performance construct is represented by three variables: commitment to new product quality, acceleration of new product launch, and achievement of company objectives. Our findings give decision makers and senior management evidence that will allow them to concentrate on more significant areas of NPD improvement in future. First, we find that the NPD team is a more important factor in the success or otherwise of NPD than the NPD process, and that effective communication and technical competence/talent are the two most important elements of the NPD team. Second, we find that the NPD process and NPD team do not jointly contribute to NPD performance. Third, while the NPD team has a positive impact on the NPD process, it has an insignificant impact on NPD performance.