How should a team be rewarded to improve quality performance of NPD?

Abstract

Purpose This paper aims to analyze the impact of team rewards (TR) on quality performance of new product development (NPD). In particular, the authors analyze whether the use of TR affects the performance of NPD team projects in not only accomplishing their work as a team and the outcomes of their performance but also considering the enhancement of the involvement of both internal functions and external actors (suppliers and customers) in the early stages of NPD. Design/methodology/approach The association of TRs on quality performances of new products is theoretically approached. Seven research hypotheses are proposed to be tested with an international database from the high performance manufacturing project. Empirical strategy includes structural equation modeling. Findings The authors observed that TR does not produce a direct effect on quality performance of NPD, but does so mediated through the involvement of SC members in the early stages of NPD. This paper highlights that, without involvement of external and internal supply chain actors, it is not possible to obtain desired performance of new products. Originality/value This study advances the study of TR on quality performance of NPD by considering TR as a tool for in-group work involving different and distant actors in the process of NPD. The analysis considers different dimensions of quality performance of NPD, distinguishing between time to market, technical issues and cost of manufacturing, which have usually been considered in an aggregated way. Empirical evidence using an ample database including manufacturing companies from fourteen countries