Incentives in new product development projects and the role of target costing

Management Science

Volumn 56, Issue 8, 2010, Pages 1324-1344

  Mihm, Jürgen ^a  

^a INSEAD   (France)

Author keywords

Incentives; New product development; R D management; Target costing

Indexed keywords

DESIGN CHANGE; INCENTIVE SCHEMES; INCENTIVES; INDUSTRIAL PROJECTS; NEW PRODUCT DEVELOPMENT; PROJECT OUTCOMES; SELF-OPTIMIZING; TARGET COSTING;

COMPETITION; ENGINEERS; OPTIMIZATION; PROFITABILITY; PROJECT MANAGEMENT; WAGES;

PRODUCT DEVELOPMENT;

EID: 77955633249     PISSN: 00251909     EISSN: 15265501     Source Type: Journal    
DOI: 10.1287/mnsc.1100.1175     Document Type: Article

References (33)

1. Baker, N., S. Green, A. Bean. 1986. Why R&D projects succeed or fail. Res. Management 29 (6) 29-34.
2. Bayiz, M., C. Corbett. 2005. Coordination and incentive contracts in project management under asymmetric information. Working paper, University of Southern California, Los Angeles.
3. Bergemann, D., U. Hege. 1998. Venture capital financing, moral hazard and learning. J. Banking Finance 22 (6) 703-735.
4. Clark, K. B., T. Fujimoto. 1991. Product Development Performance. Harvard Business School Press, Boston.
5. Feltham, G. A., J. Xie. 1994. Performance measure congruity and diversity in multi-task prinicpal-agent relations. Accounting Rev. 69 (3) 429-453.
6. Fudenberg, D., J. Tirole. 1991. Game Theory. MIT Press, Cambridge, MA.
7. Gibbons, R. 2005. Incentives between firms (and within). Management Sci. 51 (1) 2-17.
8. Godener, A., K. E. Söderquist. 2004. Use and impact of performance measurement results in R&D and NPD: An exploratory study. R&D Management 34 (2) 191-219.
9. Gutierrez, G., A. Paul. 2000. Analysis of the effects of uncertainty, risk-pooling, and subcontracting mechanisms on project performance. Oper. Res. 48 (6) 927-938.
10. Hauser, J. R. 1998. Research, development and engineering metrics. Management Sci. 44 (12) 1670-1689.
11. Hauser, J. R., F. Zettelmeyer. 1997. Metrics to evaluate R, D&E. Res. Tech. Management 40 (4) 32-38.
12. Holmström, B., P. Milgrom. 1987. Aggregation and linearity in the provision of intertemporal incentives. Econometrica 55 (2) 303-328.
13. Iyer, A. V., L. B. Schwarz, S. A. Zenios. 2005. A principal-agent model for product specification and production. Management Sci. 51 (1) 106-119.
14. Kaplan, R. S., D. P. Norton. 2000. Having trouble with your strategy? Then map it. Harvard Bus. Rev. 78 (5) 167-176.
15. Kim, B., H. Oh. 2002. Economic compensation compositions preferred by R&D personnel of different R&D types and intrinsic values. R&D Management 32 (1) 47-59.
16. Laffont, J. J., D. Martimort. 2002. The Theory of Incentives. Princeton University Press, Princeton, NJ.
17. Lambert, R. A. 2001. Contracting theory and accounting. J. Accounting Econom. 32 (1-3) 3-87.
18. Loch, C., U. Tapper. 2002. Implementing a strategy-driven performance measurement system for an applied research group. J. Product Innovation Management 44 (8) 1032-1048.
19. Loch, C. H., C. Terwiesch. 2007. Coordination and information exchange. C. Loch, S. Kavadias, eds. Handbook of New Product Development Management. Butterworth Heinemann, Amsterdam, 315-343.
20. Loeve, M. 1963. Probability Theory. van Nostrand Reinhold Company, New York.
21. McKinsey. 2000. Design to cost. McKinsey client primer by the product development practice. Report, McKinsey & Co., New York.
22. Monden, Y. 1995. Cost Reduction Systems. Productivity Press, Portland, OR.
23. Murmann, P. A. 1994. Expected development time reductions in the german mechanical engineering industry. J. Product Innovation Management 11 (3) 236-252.
24. Omar, O. E. 1997. Target pricing: A marketing management tool for pricing new cars. Pricing Strategy Practice 5 (2) 61-69.
25. Pronin, E., T. Gilovich, L. Ross. 2004. Objectivity in the eye of the beholder: Divergent perceptions of bias in self versus others. Psych. Rev. 111 (3) 781-789.
26. Savva, N., S. Scholtes. 2009. Double or quits: New product codevelopment with opt-out options. Working paper, London Business School, London.
27. Siemsen, E. 2008. The hidden perils of career concerns in R&D organizations. Management Sci. 54 (5) 863-877.
28. Swenson, D., S. Ansari, J. Bell, I. Kim. 2003. Best practices in target costing. Management Accounting Quart. 4 (2) 12-17.
29. Swink, M. L. 1998. A tutorial on implementing concurrent engineering in new product development programs. J. Oper. Management 16 (1) 103-116.
30. Terwiesch, C., C. H. Loch. 1999. Managing the process of engineering change orders. J. Product Innovation Management 16 (2) 160-172.
31. Terwiesch, C., Y. Xu. 2008. Innovation contests, open innovation, and multiagent problem solving. Management Sci. 54 (9) 1529-1543.
32. Thomke, S. H. 2002. Productivity evolution of automotive industry. Presentation at the POMS High Tech Conference, San Francisco.
33. Ulrich, K. T., S. Pearson. 1998. Assessing importance of design through product archaeology. Management Sci. 44 (3) 352-369.