Performance measurement to improve knowledge reuse and invention in new product development

Abstract The aim of this research is to identify novel functions and design principles for performance measurement which assist the user in better managing knowledge reuse and invention in New Product Development (NPD) environments. Within this research performance management is defined as the methods, processes, structures and behavioural patterns an organisation uses to improve the performance of its knowledge asset invention and reuse activities. Performance management may be used during the strategic and operative planning, implementation and communication stages of knowledge asset invention and reuse. Performance measurement is defined as the process that gathers and records the effectiveness and efficiency of the implementation and planning stages. There is a rich body of performance measurement, knowledge management and NPD literature. However there is a lack of understanding of how performance can be managed and measured in the NPD context explicitly focusing on knowledge reuse and invention. Performance measurement of knowledge is emerging as a possible mechanism to support improvement in highly complex NPD environments. Based on an extensive literature review, a definition of performance management and measurement has been elaborated as well as a taxonomy of purposes for performance measurement which is the base-line for this research. The purposes have been used to derive a set of requirements for performance measurement from a knowledge reuse and invention perspective. The requirements in turn have led to the detailed formulation of those functions needed to support effective performance measurement targeted to the specific context of knowledge reuse and invention. Performance measurement theory resulting in novel performance measurement functions has been developed, implemented and tested in four businesses (ranging from 45 to 7000 employees). The research is of a problem-oriented nature starting from a real-world problem, relying mainly on phenomenological and qualitative data analysis principles due to the "messy" nature of the problem. The analysis is based on direct interaction with more than 30 users of the functions (being the Performance Measurement Infrastructure, the framework, the catalogue, the software, and the build and implementation method). The major contributions to knowledge of this research can be summarised as follows: U Provision of comprehensive design principles for a performance measurement framework targeted to knowledge reuse and invention in NPD. U Delivery of a well-structured reuse and invention measurement catalogue embedding a set of specific reuse and invention focused measures. U Using the knowledge asset structuring concept from Knowledge Management and integrating with performance measurement principles. This is embodied in a novel Performance Measurement Infrastructure which applies measures directly to knowledge asset reuse and invention in NPD. U Design principles for an enabling information technology solution for the above modules. U A build and implementation methodology which embodies knowledge on how to build and implement reuse and invention oriented performance measurement functions.