Designing global new product teams: Optimizing the effects of national culture on new product development

Companies are increasingly bringing personnel together into teams from different countries, physically and/or electronically, to develop products for multiple or worldwide markets. Called global new product teams (GNPTs), these groups face significant challenges, including cultural diversity. Differing cultural values can lead to conflict, misunderstanding, and inefficient work styles on the one hand, and strong idea generation and creative problem solving on the other. A study was conducted to identify team compositions that would optimize the effects of national culture so that product development outcomes are favorable. This began by developing a theoretical framework describing the impact of national culture on product development tasks. The framework was then translated into several mathematical models using analytical derivations and comparative statics. The models identify the levels and variances of culture values that maximize product development success by simultaneously considering four relevant dimensions of GNPT performance. Next, the utility of these models was tested by means of numerical simulations for a range of team scenarios. Concludes by drawing implications of the findings for managers and researchers.