New Product Development in an Industrial and International Context : A managerial case study of how multinational corporations from different industries can improve NPD practices on an international level

Abstract: Nowadays, industries are characterised by their speed and changeability. Many institutions from the industrial environment, such as the technological development, appear to vary over industries. Industries are generally characterised by their instability. In addition, it is a common trend for MNCs to start the development of products in multiple countries. This in turn seems to bring many problems with it along, such as the lack of communication between departments and the difficulties of sharing knowledge. The recognition of implications for New Product Development (NPD) best practices in a sophisticated industry and complex international environment therefore led us to the overarching research question: “How can MNCs from different industries best manage their corporate portfolio of New Product Developments (NPDs) on an international level?” The following three considerations are used to help us answer the main issue: (1) how NPD best practices can create a competitive advantage for MNCs, (2) how industrial institutions can influence the NPD best practices, and (3) how international institutions can influence the NPD best practices. The purpose of this thesis is therefore to comprise the academic research of NPD best practices for MNCs with both the industrial and international institutions that influence NPD best practices of MNCs. This research has been conducted through a qualitative research; six industrial cases from five MNCs have therefore been used to answer these questions. Empirical data was gathered through five face-to-face interviews and one phone interview. The theoretical framework therefore includes the NPD best practices, and the main institutions within both the industrial and international environment. These three areas have been synthesised from the earlier on mentioned three themes, which have been used as a basis throughout the empirical findings. Within the analysis, the theoretical framework and empirical findings have been systematically combined to find answers regarding our three sub questions. Concluding, it seems that strategy, processes, resources and capabilities, and portfolio management are commonly used practices, whereas these seem to be influenced by both industrial and international institutions.