Dr Mohammadali Farjoo – intellcert Australia / New Zealand
Quality Management as a Catalyst for New Product Development in the Digital Age
#Innovation #Entrepreneurship #QualityManagement #NewProductDevelopment #AI #IoT #DigitalTransformation #BusinessGrowth #Startups #SMEs #Certification #DynamicCapabilities #ProductDevelopment #Compliance #MarketSuccess #BusinessStrategy #TechInnovation #ContinuousImprovement
Innovation and entrepreneurship are flourishing in the digital age, driven by advancements in Artificial Intelligence (AI), the Internet of Things (IoT), and rapid digitisation. Amidst this dynamic landscape, New Product Development (NPD) has emerged as a key differentiator for businesses striving to remain competitive. However, the role of Quality Management (QM) in facilitating NPD is often misunderstood. While QM and certification are frequently perceived as barriers or additional costs for startups, small and medium enterprises (SMEs), and emerging businesses, research indicates otherwise. Empirical evidence underscores the critical role of QM in enhancing NPD performance by fostering dynamic capabilities, optimising development processes, and addressing skillset gaps within organisations.
The Link Between Quality Management and New Product Development
Recent research highlights the strong correlation between QM capabilities and NPD performance. Contrary to the belief that QM may stifle innovation, studies demonstrate that well-implemented QM practices significantly contribute to the efficiency and effectiveness of NPD processes. Kumar et. al. explored how QM acts as a mediating factor in the relationship between dynamic capabilities and NPD outcomes, revealing that QM enhances all dimensions of NPD except development costs [1]. This indicates that while QM may not directly reduce costs, it is crucial in accelerating time-to-market, improving product quality, and ensuring regulatory compliance, which is equally essential for commercial success.
Human Resource-Related QM Practices in NPD
Human resources (HR) also plays a pivotal role in the intersection of QM and NPD. According to Gutiérrez et al. [2], HR-related QM practices, including training, employee empowerment, and teamwork, create an organisational culture conducive to learning and innovation. These practices enable firms to:
- Develop a learning-oriented culture where continuous improvement and adaptability become core organisational values.
- Facilitate knowledge integration, ensuring expertise from different functions converges to enhance product development.
- Strengthen strategic flexibility, allowing firms to respond swiftly to changing market demands and technological advancements.
By fostering a workforce equipped with the necessary skills, the QM practices bridge the gap between innovation and execution, ultimately boosting the success rate of market penetration.
Overcoming Barriers: Shifting the Perception of QM
A significant challenge in adopting QM among startups and SMEs is the perception of QM and certification as regulatory burdens rather than strategic enablers. However, according to Gutierrez, companies that integrate QM principles early in their NPD processes benefit from:
- Enhanced product reliability and customer trust
- Streamlined production and development cycles
- Improved compliance with industry standards and regulations
- Increased market credibility and investor confidence
Given these advantages, businesses must rethink their approach to QM, viewing it not as a restrictive framework but as a strategic tool that drives sustainable innovation and competitive advantage.
The Way Forward: Quality Management as a Competitive Advantage
For businesses looking to scale and compete in global markets, integrating QM into NPD strategies is no longer optional, it is a necessity. At MH Inspires, we specialise in guiding startups and SMEs through this transformative journey. As the official Australian and New Zealand partner of intellcert GmbH, a leading certification body based in Berlin, we provide end-to-end support in:
- Implementing effective QM systems
- Conducting gap analyses to identify skill shortages
- Aligning innovation with regulatory and certification requirements
- Enhancing product quality to meet international standards
Our expertise in research commercialisation, quality certification, and business development empowers our clients to confidently navigate the complexities of innovation. If you are an entrepreneur, startup, or SME looking to leverage QM for competitive advantage, contact us today and let us help you turn your ideas into market-ready solutions.
References
- Kumar, P., Ramanan, T. R., & Keelath, M. S. (2020). The mediating role of quality management capability on the dynamic capability – new product development performance relationship: An empirical study among new product development units in the electronics sector. The Quality Management Journal, 27(2), 80–94. https://doi.org/10.1080/10686967.2020.1722047
Gutierrez-Gutierrez, L. J., Barrales-Molina, V., & Kaynak, H. (2018). The role of human resource-related quality management practices in new product development: A dynamic capability perspective. International Journal of Operations & Production Management, 38(1), 43–66. https://doi.org/10.1108/IJOPM-07-2016-0387
