Product innovation: An empirical study into the impact of simultaneous engineering on new product quality92 Table 6. Linear regression analysisDEPENDENT VARIABLE: QUALITY (n=43)CONSTANTß 02.181***Standard error 0.571TEAMß 10.334*Standard error 0.184CWFß 20.238**Standard error 0.113EARLYNVLß 3-0.010Standard error 0.129INNVß 4-0.110Standard error 0.147Adjusted R 2 0.236Test F 4.160****** p ≤ 0’01; ** p ≤ 0’05 ; * p ≤ 0’1As test F shows, the mo<strong>de</strong>l we posited is significant, which means it can explain variationsin quality of the new products <strong>de</strong>veloped. It is therefore possible to reject the null hypothesisthat there is no significant linear relationship between simultaneous engineering and newproduct quality. The correlation coefficient R 2 indicates that all the variables incorporatedin the mo<strong>de</strong>l can explain 23.6% of the variation in new product quality. We are aware thatthis value is not particularly high, but this due to the fact that simultaneous engineering isonly being analyzed to explain new product quality. There are, however, techniques whichcompanies can use to raise the quality which have not been consi<strong>de</strong>red here (as they are notrelevant to the aim of the study). See for example Miranda-González and Bañegil-Palacios(2001, 2002) who have classified the methods in the literature into five groups: <strong>de</strong>sign techniques,manufacturing techniques, organizational techniques, information techniques, andthe participation of suppliers.Nevertheless, we should remember that the aim of the study, and thus its fundamentalcontribution, is to analyze the impact of each of the main principles un<strong>de</strong>rlying simultaneousengineering (multifunctional teams, concurrent workflow and early involvement) onthe increase in new product quality. For this reason we must concentrate our attention onthe parameters associated with each one of the in<strong>de</strong>pen<strong>de</strong>nt variables representing thefundamental principles of simultaneous engineering.<strong>GCG</strong> GEORGETOWN UNIVERSITY - UNIVERSIA SEPTIEMBRE-DICIEMBRE 2011 VOL. 5 NUM. 3 ISSN: 1988-7116pp: 80-101
Beatriz Minguela-RataWe can see that not all of them are significant. The use of multifunctional teams (TEAM) doesturn out to be significant, in fact it has the biggest influence on the increase of product quality,as does concurrent workflow (CWF), but the third principle, early involvement (EARLYNVL)is not significant. This is borne out by the correlation between this factor and the other twoin<strong>de</strong>pen<strong>de</strong>nt variables (the use of multifunctional teams, with a r = 0.426**, and concurrentworkflow, with an r = 0.444**).93This result is very interesting in that it supports those researchers who claim that simultaneousengineering only has two un<strong>de</strong>rlying precepts (multifunctional teams and concurrentworkflow). Teams ma<strong>de</strong> up of people from different functional areas need integrationof and commitment from their members from the start, which means that early involvementis already implicit in this i<strong>de</strong>a. Concurrent workflow provi<strong>de</strong>s a similar argument, since theoverlapping execution of activities is carried out with information from previous activities,and this implies that participants in the <strong>de</strong>velopment process are must be involved from thebeginning.With regard to the dummy variable INNV, results of the regression show a negative but notsignificant coefficient. This indicates that the improvement in quality of the new product isachieved in<strong>de</strong>pen<strong>de</strong>ntly of the <strong>de</strong>gree of innovation.The results obtained are reliable, since the residuals conform to the null hypothesis, homocedasticityand non auto-correlation, and have a normal distribution.5. ConclusionsThe importance of product quality is not any doubt today as a source of competitive advantage.Presented with a wi<strong>de</strong> choice of products capable of meeting their needs, consumersrelegate more traditional variables involved in purchasing <strong>de</strong>cisions, such as price, to a secondarylevel. Instead, the customer will choose products which, while falling within theirrange of price and required features, best meet their needs. From a business point of view,however, the new product should not only satisfy the customers’ needs but also exceed theirexpectations.Experience has shown that traditional practices employed by companies to <strong>de</strong>velop newproducts have not been efficient, preventing them from competing in dynamic environmentswith high <strong>de</strong>grees of uncertainty. Managements therefore had to apply new approaches toimprove the organization and execution of such <strong>de</strong>velopment processes and thus generatesuccessful products with improved levels of quality.The purpose of this paper, therefore, is to analyze one of these new approaches, in particularthe impact of simultaneous engineering on the improvements in new product, studying eachof the fundamental principles in turn: the use of multifunctional teams, concurrent workflow,<strong>GCG</strong> GEORGETOWN UNIVERSITY - UNIVERSIA SEPTIEMBRE-DICIEMBRE 2011 VOL. 5 NUM. 3 ISSN: 1988-7116pp: 80-101