Role of traditional Chinese philosophies and new product development under circular economy in private manufacturing enterprise performance

Nachiappan Subramanian, Angappa Gunasekaran, Lin Wu, Tinghua Shen

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The new product development (NPD) process–performance link has been sufficiently studied in academic research. However, recent NPD process is significantly different from the conventional NPD specifically with the inclusion of sustainability considerations under circular economy (CE) context. In theory, NPD with CE considerations (CE-NPD), compared with the conventional NPD, is associated with higher costs and longer development times. This study empirically examines the effect of the CE-NPD process on both time-to-market (TTM) and profit performance in the context of Chinese private enterprises. In addition, the role of traditional Chinese philosophies of Confucianism and Taoism in influencing the CE-NPD process–performance link is also investigated. We find that Confucianism positively moderates the relationship between the CE-NPD process and TTM performance. However, it negatively moderates the CE-NPD-profit link. On the other hand, the moderating effect of Taoism is negative on both the CE-NPD-TTM and CE-NPD-profit links. An interesting finding of this study is that the coexistence of Confucian and Taoist values in NPD workers has the strongest positive impact on the relationship between the CE-NPD process and performance. Our study provides insights on the way in which companies should plan to apply Chinese philosophies during the CE-NPD process to maximise the benefits.

Original languageEnglish (US)
Pages (from-to)7219-7234
Number of pages16
JournalInternational Journal of Production Research
Issue number23
StatePublished - Dec 2 2019

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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