New Product Development Capabilities And Firm Performance The Moderating Role Of Transformational Leadership Behavior

Under the business environment of global economic structural adjustment and increasingly fierce market competition,the manufacturing enterprise relied on its improved capabilities to develop new product to get rid of the homogeneous competition and realize the sustainability eventually.However,many enterprises did not possess a clear review of the mechanism how the new product development capabilities of new product produces enterprise performance,thus leading to the situation that some enterprises could not improve their performances by enhancing this ability.Meanwhile,there is limited literatures references in favor of this action mechanism.Therefore understanding the mechanism and factors affecting the relationship between new product development capabilities and the firm performance is remained to be resolved in the development process of new product for the manufacturing enterprise.Based on the motivation theory and with the combination of literature review and case study of HY company,this paper introduced the theory of transformational leadership behavior,and thus constructed a new model among new product development ability,the enterprise performance and the transformational leadership behavior.Unlike previous research,this paper no longer focused only on enterprise managers leadership behavior of the individual,but the enterprise the whole senior leadership team as the research object.it considered the whole top management team as the object of case study.On the basis of case studies and previous researches,a research form was designed in this paper containing the following contents: a questionnaire survey of 165 manufacturing enterprises and an empirical test of the research hypothesis about the relationship among new product development capabilities,firm performance and the transformational leadership behaviors by utilizing the structural equation model and the hierarchical regression analysis method respectively.The research results demonstrated that the new product development capabilities can be divided into three dimension-the rate of development,quality and cost-effectiveness of development for the new product,which can be favorable to the financial performance and non-financial performance.Furthermore,the paper also indicated that the transformational leadership behaviors regulates the relationship between new product development capabilities and firm performance.Combining the theories of the transformational leadership with intrinsic motivation,this paper explored the action mechanism of new product development capabilities to firm performance and the moderating role of transformational leadership on new product development capabilities to firm performance.Compared with the relative research from both domestic and international,the action mechanism of new product development capabilities affecting the firm performance was discussed in details and a more exhaustive conclusion was drawed accordingly,which can enrich the research of new product development field as well as widen further application of behavioral theories of leadership.The research results provided guidance to enhance the enterprise performance by improving the new product development capabilities and exerted certain significance for the management practice.