ANALYZING THE RELATIONSHIP OF TECHNOLOGY SUPPORT, FUNDING AND PRODUCT STRATEGIES IN NEW PRODUCT SUCCESS IN MALAYSIA MANUFACTURING INDUSTRY ZURAIDAH DARUS MASTER OF HUMAN RESOURCE MANAGEMENT UNIVERSITI UTARA MALAYSIA January 2015
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ANALYZING THE RELATIONSHIP OF TECHNOLOGY SUPPORT, FUNDING
AND PRODUCT STRATEGIES IN NEW PRODUCT SUCCESS IN MALAYSIA
MANUFACTURING INDUSTRY
ZURAIDAH DARUS
MASTER OF HUMAN RESOURCE MANAGEMENT
UNIVERSITI UTARA MALAYSIA
January 2015
ANALYZING THE RELATIONSHIP OF TECHNOLOGY SUPPORT, FUNDING
AND PRODUCT STRATEGIES IN NEW PRODUCT SUCCESS IN MALAYSIA
MANUFACTURING INDUSTRY
By
ZURAIDAH DARUS
Research Paper Submitted to
Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia,
In partial fulfilment of the requirement for the Master Degree of Human Resource
Management
i
PERMISSION TO USE
In presenting this dissertation in partial fulfilment of the requirements for a Post
Graduate degree from the Universiti Utara Malaysia (UUM), I agree that the Library
of this university make it freely available for inspection. I further agree that permission
for copying this dissertation in any manner, in whole or in part, for scholarly purpose
may be granted by my supervisor(s) or in their absence, by the Dean of Othman Yeop
Abdullah Graduate School of Business where I did my dissertation. It is understood
that any copying or publication or use of this dissertation parts of it for financial gain
shall not be allowed without my written permission. It is also understood that due
recognition shall be given to me and to the UUM in any scholarly use which may be
made of any material in my dissertation.
Request for permission to copy or to make other use of materials in this dissertation in
whole or in part should be addressed to:
Dean of Othman Yeop Abdullah Graduate School of Business
Universiti Utara Malaysia
06010 UUM Sintok
Kedah Darul Aman
ii
ABSTRACT
The importance of new product development (NPD) has grown gradually over the last
few decades, and is now the leading driver of competition in many industries all over
the world including Malaysia. There are many critical factors that contribute successful
in developing new products. Examples of such critical success factors are top
management support, external support, and strategies. Being able to produce a new
product is a good indicator for a companies, it’s showed the companies still on the
league. However, not all of new product success as it was expected, thus main purpose
of this study is to analyse the relationship between technology support, external
support and product strategies with new product success in Malaysia manufacturing
industries. The objectives of this study is to examine the relationship between
technology support, external support and product strategies with new product success
(quality guidelines and cost performance). Data was collected through a survey of 40
respondents from various manufacturing companies in Kedah using the approach of
quantitative research methods. Analysis of the quantitative data suggests that
technology support has a strong positive relationship towards new product
development in Malaysia manufacturing industry. Meanwhile for external support and
product strategies, there are positive and negative relationship between these variables
and new product. At the end of this study, recommendations have been given for future
studies.
Key terms: new product development, technology support, external support, product
strategies
iii
ABSTRAK
Kepentingan pembangunan produk baru (NPD) telah berkembang secara beransur-
ansur sejak beberapa dekad yang lalu, dan kini peneraju utama persaingan dalam
banyak industri di seluruh dunia termasuk Malaysia. Terdapat banyak faktor-faktor
kritikal yang menyumbang ke arah kejayaan dalam membangunkan produk-produk
baru. Contoh faktor-faktor kejayaan kritikal tersebut adalah sokongan pengurusan
atasan, sokongan luar, dan strategi. Mampu untuk menghasilkan produk baru adalah
petunjuk yang baik untuk syarikat, ia menunjukkan syarikat-syarikat masih mampu
bersaing. Walau bagaimanapun, tidak semua produk baru berjaya di pasaran seperti
yang telah dijangka, dengan itu tujuan utama kajian ini adalah untuk mengenal pasti
hubungan antara sokongan teknologi, sokongan luaran dan strategi produk dengan
kejayaan produk baru dalam industri pembuatan Malaysia. Objektif kajian ini adalah
untuk mengkaji hubungan di antara sokongan teknologi, sokongan luaran dan strategi
produk dengan kejayaan baru produk (garis panduan kualiti dan prestasi kos). Data
dikumpulkan melalui kaji selidik 40 responden dari pelbagai syarikat pembuatan di
Kedah menggunakan pendekatan kaedah penyelidikan kuantitatif. Analisis data
kuantitatif menunjukkan bahawa sokongan teknologi mempunyai hubungan positif
yang kuat ke arah pembangunan produk baru dalam industri pembuatan Malaysia.
Sementara itu, bagi sokongan dan strategi produk luar, terdapat hubungan yang positif
dan negatif antara pembolehubah dan produk baru. Di akhir kajian ini, cadangan telah
diberikan untuk kajian akan datang.
Kata kunci: pembangunan produk baru, sokongan teknologi, sokongan luaran,
strategi produk
iv
ACKNOWLEDGEMENT
I would like to convey my utmost gratitude to Allah S.W.T for giving me the passion
and motivation to complete this study.
I would like to thank my dissertation supervisor, Prof. Madya Dr. Amlus Ibrahim for
his valuable efforts and time in providing in providing proper guidance, assistance and
effortless support throughout the entire process. From him I learnt skills, patience and
endurance in completing the dissertation.
My sincere appreciation also for all respondents who have contributed significantly by
participating in this research.
My special thanks to my mother for her continuous source of inspiration and
encouragement. My special thanks also to my family, to all my course mates,
officemates, and friends who always give support and encouragement throughout this
studies.
v
TABLE OF CONTENT
PERMISSION TO USE i
ABSTRACT ii
ABSTRAK iii
ACKNOWLEDGEMENT iv
TABLE OF CONTENT v
LIST OF TABLES vii
LIST OF FIGURES viii
LIST OF ABBREVIATIONS ix
CHAPTER 1: INTRODUCTION
1.1 Introduction 1
1.2 Background of the Study 1
1.3 Problem Statement 2
1.4 Research Objectives 4
1.5 Research Questions 5
1.6 Scope of Study 5
1.7 Significance of Study 6
1.8 Limitation of the Study 6
1.8.1 Limited number of manufacturing firms in Kedah 6
1.8.2 Slow feedback from the respondent 6
1.9 Summary of the Thesis 7
CHAPTER 2: LITERATURE REVIEW
2.1 Introduction 9
2.2 New Product Success 9
2.2.1 New Product Development Process 11
2.2.2 Ramp-up phase 13
2.2.3 Accelerated learning 16
2.2.4 Antecedents of accelerated learning in teams 21
2.2.5 Management support 22
vi
2.2.6 Top management support 25
2.3 Technology Support 25
2.4 External Support 26
2.5 Product Strategies 27
CHAPTER 3: METHODOLOGY
3.1 Introduction 28
3.2 Research Framework 28
3.3 Research Design 29
3.4 Research Population 31
3.5 Research Samples and Sampling Techniques 31
3.6 Data Collection Instrument 31
3.7 Data Collection Procedure 32
3.8 Data Analysis Procedure 32
3.9 Summary 33
CHAPTER 4: RESULTS AND FINDINGS
4.1 Introduction 34
4.2 Section A: Demography 34
4.3 Section B: The Relationship among Variables 37
4.3.1 Multiple Pearson Correlation Analysis of the Variables 37
4.4 ANOVA 40
CHAPTER 5: CONCLUSION AND RECOMMENDATION
5.1 Introduction 43
5.2 Discussion 43
5.3 Recommendation 44
5.6 Conclusion 44
REFERENCES 46
APPENDIX 56
vii
LIST OF TABLE
Table 4.1: The Summary of Relationship between Technology Support
and NPD Technology Acceptance. 38
Table 4.2: The Summary of the Relationship between External Support
and NPD Funding 38
Table 4.3: The Summary of the Relationship of Product Strategies
(Quality Performance) and NPD Quality Guidelines. 39
Table 4.4: The Summary of the Relationship of Product Strategies
(Cost Performance) and NPD Cost Performance. 39
Table 4.5: The ANOVA of NPD Technology Acceptance 40
Table 4.6: The ANOVA of NPD Funding and Support 41
Table 4.7: The ANOVA of NPD Quality Guideline 41
Table 4.8: The ANOVA of NPD Cost Performance 42
viii
LIST OF FIGURE
Figure 3.1: Research Framework 28
Figure 3.2: Research methodology diagram 30
Figure 4.1: The Age of Company 34
Figure 4.2: The types of Business 35
Figure 4.3: The Number of Employees 35
Figure 4.4: The Position in the Company 36
Figure 4.5: The Education Level of Respondent 36
Figure 5.1: The relationship between those variables and NPD 43
ix
LIST OF ABBREVIATION
NPD – New Product Development
NPS – New Product Success
R&D – Research and Development
RMC - R&D and Marketing Cooperation
CFC - Cross-Functional Cooperation
MO – Market Orientation
SME – Small Medium Enterprise
CAT - Computed Axial Tomography
ROI – Return On Investment
1
CHAPTER ONE
INTRODUCTION
1.1. Introduction
This study explores the relationship of technology support, external support and
product strategies in new product success mainly in Malaysian manufacturing
industry. In particular, it will touch to highlight the relationship and significance
factors of technology support, external support and product strategies in new product
development quality. This chapter contains the discussion on the background of study,
problem statement, research objectives, research question, scope of study,
significance of study, limitation of study and research process.
1.2. Background of Study
In Malaysia’s manufacturing sector there are continuous efforts for development
especially in new product development (NPD), it happens in order to accomplish the
competitiveness level and innovative capability that up to the global standard.
Meeting the global standard is essential as it will lead Malaysia to become a country
that capable to manufacture a high-technology, higher-value added and more
sophisticated products and services. In addition, involving in joint-ventures and
strategy collaborations among local and international institution and developed
nations yield a lot of benefits such as Malaysia get respected globally. Indeed, from
joint-ventures and strategy collaborations, Malaysia will receive valuable technology
transfer and number of expertise of our own. On the other side, Malaysia may also
carry out some projects abroad with developed countries expertise while material and
labor are from Malaysia. This will give credits to both parties. After a while, Malaysia
will be proud to be known as a successful developing country.
46
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