STRATEGIC OPENNESS IN QUALITY CONTROL: ADJUSTING NPD STRATEGIC ORIENTATION TO OPTIMIZE PRODUCT QUALITY

Many firms have shifted to an 'open innovation' strategy by integrating external information into new product development (NPD). This study extends the open innovation paradigm to the area of product quality control practices in NPD. Using data collected in 10 countries, this study investigates the role of external information acquired through B2B/B2C customer, competitor, technology, and manufacturing orientation in meeting quality and performance specifications of newly developed products. It also illuminates the interconnected roles of B2B and B2C customer orientation in meeting these specifications. Contrary to conventional wisdom, the results show that leveraging a variety of external information sources (in particular, frequent and informal communication with B2B customers and coordination with the manufacturing department) indeed helps firms improve internal product quality control practices in NPD. Information on B2C customers is beneficial in B2B contexts only if effectively integrated by means of B2B affective information management.