W3: Sethi & Iqbal (2008): Stage-Gate Controls, Learning Failure, and Adverse Effect on Novel New Products Flashcards
Stage-gate process
A system that offers a methodology for exerting control on new product development. Control imposed through this system helps firms’ product development efforts in terms of introducing discipline, improving performance, enhancing efficiency, and reducing new product cycle time. Concern is that it is not suitable for all types of product. Can harm products with high novelty. When gate controls are rigorous, they can adversely affect learning in the new product development project. It leads to inflexibility, can also affect learning
Paper’s aim
Studies whether stage-gate evaluation adversely affects novel new products
Stage-gate controls
Typically break the traditional new product development process into a set of discrete and identifiable stages, with each stage consisting of a set of prescribed activities
Gates
Separate stages and serve as the control and go/no-go check points. They are designed in the form of meetings that take place between senior management and representatives of the product development team
Gate evaluation
Basically involves an attempt both to introduce management controls and to improve the process or product development
Process controls
A type of formal management control. Direct by specifying methods and procedures to be adopted for performing tasks. Gate evaluation specifies the steps or the procedure the team must adhere to before each gate
Output controls
A type of formal management control. Direct by specifying output goals and standards
Rigor
Can come from tightness of controls, uniformity or objectivity of controls, and frequency of control in management control systems
Process management
A core component of several initiatives, including ISO 9000 and Six Sigma. The influence has gradually spread into product innovation. It focuses on improving efficiency and reducing variation. Literature suggests that they stabilise organisational routines and tighten linkages among them. Thus, they reduce adaptability or flexibility
Gate conditionality
Means that the projects are allowed to proceed further into the process of development conditional on meeting required criteria at a subsequent stage or that certain project activities are approved out of the usual sequence. Projects will no longer be held up because of certain criteria remaining unmet at a particular time
Learning failure
Refers to a team’s inability to acquire and process any new information
Continuous learning
This ability enables firms to stay abreast of changes in markets and technologies
Market turbulence
Defined as the degree of instability, uncertainty, and lack of control within a firm’s marketplace
Technological turbulence
Refers to the degree to which technology changes over time within an industry and the degree to which such changes affect the industry
