Identifying factors that impact organization integration on new product development performance: Study the moderating effect of virtuality

Today’s business environment is becoming more turbulent as the rate of change accelerates and new technologies allow information to spread globally almost instantly. Organizations are finding themselves pulled into a vortex of complexity and increased customer demand.Managers are facing even more challengers, and many firms have recently adopted a strategic approach to new product development to create and maintain a competitive advantage.Generally, new product is the important factor in running and developing business.Hence, this research is aimed to identifying the relationships between factors that to make sure the companies can survive among companies across industries in the Malaysia.Those identified factors are concurrent engineering, customer Involvement, Supplier Involvement, integration between NPD teams and overall integration , virtuality, NPD Performance, Product Innovation, Product Quality.Through the mail survey, a total of 120 respondent representing from the manufacturing firms responded.The hypotheses involved were tested using correlation and regression techniques.The multiple regression analysis is use to indicates any significant relationships among the factors on each criterion to new product development.It is believed that results of this study will be beneficial for share holders and directors of companies to apply these new product development concepts.Results shows that OI is positively affecting new product performance (R2=0.004, F=0.463, p>0.05).The insertion of virtuality has increased the R-square to 0.107 and F=0.6990 and p<0.01.This result suggests that OI and virtuality give a significant effect to new product performance for 10.7 percent.The insertion of virtuality in the equation also give a significant changes to the model (R2 change=0.103, F change=13.468, p<0.01).Result shows that internal and external integration significantly explained 29.1 percent of new product development (R2=0.291, F=15.870, p<0.01).Two independent variables are significantly predict new product development, that are concurrent engineering (B=0.321, t=2.420, p<0.01) and customer involvement (B=0.360, t=3.020, p<0.01).Insertion of organization integration as a mediating variable shows that overall model significantly explained new product performance for 29.6 percent (R2=0.296, F=12.096, p<0.01)