The Impact of Communication Behaviours on New Product Development Speed and Organisational Learning

World Business Institute
Publication Type:
Journal Article
International Review of Business Research Papers, 2007, 3 (1), pp. 162 - 182
Issue Date:
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The purpose of this research is to understand how communication behaviours influence new product development (NPD) speed and organisational learning. Through the use of structural equation modelling, this research tests a model examining the effects of communication behaviours (i.e. communication quality, bi-directional communication, and communication frequency) on NPD speed and organisational learning, and also the effect of organisational learning on NPD speed. The results indicate that communication behaviours had no direct effect on NPD speed; however, each communication behaviour had a significant positive effect on organisational learning, particularly communication quality. Moreover, the results indicate a strong direct relationship between organisational learning and NPD speed. These findings suggest that to increase NPD speed, importance needs to be placed on improving organisational learning within the firm. In addition, our findings suggest that three useful means to improve organisational learning involve improving the quality of communication exchanged between managers within the firm, increasing bidirectional communication, and communication frequency between managers responsible for NPD.
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