Procedural Justice,Cross-functional Integration And New Product Development Success Of Joint Venture

Implementing the strategy of innovation-driven development and constructing an innovative country are the major topics in the field of economic construction in China.Strengthening innovation ability,improving the level of real economy,stepping into the mid-to high-end of global industrial value chain,and constantly enhancing innovation and competitiveness are the important components to construct China's modern economic system nowadays.Under the background of knowledge economy,innovation and new product development have an increasingly significant role in modern commercial organizations.However,the development of new products often faces huge failure risk,and enterprises often develop new products in the form of joint venture or cooperation and other strategic alliances in order to realize risk sharing and advantage complementation.After the reform and opening up,the Sino-foreign joint venture model began to enter China.Although tremendous achievements have been made in the past forty years,there are still some confusions and challenges in the process of management for Sino-foreign joint ventures.From the perspective of The Resource-based view of the firm,the joint venture cooperation between organizations is an important way for enterprises to obtain sustainable competitive advantage.However,Resource-dependence theory holds that the party who occupies the key and scarce resources in the process of joint venture has a greater discourse power advantage in the game of rights between organizations and in the process of decision-making due to the differences in resource endowment and strength and other factors.A typical problem is that in the process of internal management of joint venture,Chinese enterprises often lack discourse power matching its equity status,while foreign partners who occupy key and scarce resources often exert more influence on the joint venture and the members of the organization by virtue of their rights.The impartiality of this right is not conducive to the procedural justice of the joint venture,and has a negative impact on the cross-functional integration activities,and the new product development success.According to existing research,the form of joint ventures and other strategic alliances have become an important way for organizations to gain competitive advantage,and the organizations are also faced with the challenge of how to effectively manage the alliance to promote the performance of alliance,especially in the context of cross-cultural organizations,organizations face more complex management challenges.The theory of fairness provides a new theoretical perspective and practical guidance to solve this problem.Based on the importance of innovation management practice problems and strategic decision-making of new product development,a theoretical model of procedural justice,cross-functional integration,the new product development success and new product introduction strategy of joint venture is built based on the existing research in the fields of resource theory,organizational justice theory,innovation and new product development management theory and other fields.Based on this reference model and through discussion on the antecedents,mediator and moderator effect of new product development success in the joint venture,the theory of organizational justice is intended to be introduced into the research on the new product development success in the joint venture,in order to discover the impact of procedural justice on the new product development success in the joint venture from both personal and organizational level.Specifically,the study establishes and validates the theoretical framework of "procedural justice——cross-functional integration——new product development success".Meanwhile,it analyzes the Moderator effect of new product introduction strategy as an environmental factor on the relationships between cross-functional integration of new products and the new product development success,between procedural justice and the new product development success.In order to verify the rationality of the theoretical model,New product development activities for the three models of two sino-foreign joint ventures in the automobile manufacturing industry are selected in the study as the case analysis object,and through the case analysis of the two enterprises,the key behaviors are extracted from the management practices of the enterprise,providing initial support for the rationality of this research model proposition.Besides,in order to verify the universality of this issue under study,a questionnaire survey is made among sino-foreign automobile joint ventures in Changchun,Shanghai,Guangzhou,Wuhan and Beijing,etc.and an empirical analysis of the proposed theoretical hypotheses is performed through the method of multi-level linear model and structural equation.97 valid questionnaires out of 150 joint venture automobile model samples questionnairs are subject to empirical analysis,and the empirical results show that all the hypotheses are supported by the data.The study mainly makes the following research conclusions;(1)There is a positive correlation between Procedural justice and the cross-functional integration of joint venture;There is a positive correlation between the procedural justice and the New product development success of joint venture.(2)There is a positive correlation between the cross-functional integration and the New product development success of joint venture.(3)The cross-functional integration plays a mediating role in the joint venture procedural justice and the New product development success.(4)The new product introduction strategy plays a moderator effect in the cross-functional integration and the New product development success of joint venture.Compared with the import-oriented strategy,the positive correlation between the cross-functional integration and the New product development success is significantly enhanced.(5)The new product introduction strategy of the joint venture plays an indirect moderator effect in the procedural justice and the New product development success.Compared to the imported-oriented strategy,the positive correlation between the procedural justice and the New product development success under the local oriented strategy is significantly enhanced.This research is based on the important research area of innovation management —— new product development.Considering the insufficient research related to innovation management,with reference to research fingings such as resource theory,organizational equity theory and innovation management theory,the theoretical model is built and validated according to case analysis and questionnaires empirical analysis.In this study,procedural justice is used as the antecedent cause to influence the cross-functional integration and new product development success of joint venture,and the cross-functional integration is used as the mediating variable of procedural justice and new product development,to reveal the influence of procedural justice on the new product development success of joint venture.The study also discusses the moderator effect of the new product introduction strategy in combination with the difference of new product introduction strategy.This research enriches the existing theory of innovation,and responds to the call for research on the process and mechanism of asymmetric dependence on sino-foreign joint ventures in innovation management research,which is highly innovative,mainly embodied in the following three aspects.(1)This study introduces the procedural justice theory into the existing models of the cross-functional integration and new product development success to accurately describe and explain the key factors that influence new product development success in the context of sino-foreign joint ventures.With the help of field research,and case analysis and empirical analysis,etc.we discuss the problems that have not been paid enough attention to in the current relevant theoretical researches,and provide theoretical support for scholars to explore the innovation theory and phenomenon of new product development success from the perspective of organizational justice theory.(2)The study describes the case analysis and empirical study on the relationship between procedural justice,cross-functional integration,and new product development success of joint ventures,enriching the research of innovation theory in this field;the theoretical model is developed for the relationship between procedural justice,cross-functional integration and new product development success of joint ventures.The study is conducive to broadening the understanding of the role of procedural justice and cross-functional integration in the context of sino-foreign joint ventures in new product development success.In addition,although existing research has discovered the interactions between cross-functional integration and new product development success,its mediating role in the relationship between procedural justice and new product development success has not yet been given sufficient attention.This study examines and verifies the mediating role of cross-functional integration of joint ventures in the relationship between procedural justice and new product development success,in order to help the further research on relevant theories.(3)This research also reveals the relationship between cross-functional integration and new product development success of joint ventures,and the moderator effect of new product introduction strategies on the relationship between procedural justice and new product development success,in favor of explaining the disagreement of existing studies on the relationship between cross-functional integration and new product development success.In other words,the significant impact of procedural justice and cross-functional integration on new product development succe is affected by the new product introduction strategies of enterprises.This study has perfected the research category of innovation management theory and provided theoretical support for the analysis of new product development success of joint ventures from different perspectives.The empirical analysis for the impact of procedural justice and cross-functional integration of joint ventures on the new product development success indicates that procedural justice has an important influence on the new product development success,and proper procedural justice is in favor of encourage the development activities of new products for joint ventures and providing valuable reference for management practices.During management practice,the managerial personnel of joint ventures should pay attention to procedural justices and other related issues,and recognize that factors such as the right to speak and the degree of participation of team members in joint ventures may exert significant impacts on the new product development success;on the other hand,this study can also help related practitioners to better understand the challenges of management practices caused by factors such as the characteristics of sino-foreign joint ventures and cultural differences.If handling the procedural justice properly in the process of business management,the joint ventures can improve their performance in cross-functional integration,new product development suceess,and other related management tasks,therefor to improve the corporate performance.In conclusion,the theoretical researchers and related practitioners should pay enough attention to the role of procedural justice in the new product development activities of joint venture.Additionally,the mediating role of cross-functional integration in the relationship between procedural justice and new product development success should also be valued,to properly improve relevant management practices.Finally,when examining the impact of the procedural justice and cross-functional integration of joint ventures on the new product development success,it is necessary to incorporate the moderator effect of new product introduction strategy into the considerations of strategic planning.Through a comprehensive and systematic understanding of the relationship between all the above variables,the study can help promote new product development success of joint ventures and the performance of other related management tasks.The study is aimed to providing some helpful reference for joint venture management practices,to promote the new product development success,and obtain sustainable competitive advantages.