Abstract:
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.