A comparative analysis of new product development by Italian and Japanese manufacturing companies: A case study

Based on survey data from Italian and Japanese companies, six measurement scales are developed for practices, process, strategic guide, and capabilities for new product development as potential determinants of its financial performance, that is, attainment of profit goals and revenue goals. By employing a regression model with a country dummy variable, the differential determinants of financial goals attainment between Italian and Japanese samples are estimated. A significant difference can be found in the impact of new product development capabilities on profit goals attainment only. Then, we evaluate the level of improvement in explanatory power by dividing the pooled sample into two and enabling regression coefficients to take different values, and find no evidences of the significant improvement. Technology and marketing capabilities concerning new product development are demonstrated to be overwhelmingly important to financial performance.