Development of a New Technology Venture Balanced Scorecard Derived from Critical Factors that Impact Product Quality
Date of Award
Doctor of Philosophy
Industrial and Manufacturing Engineering
Dr. David M. Lyth
Dr. Tarun Gupta
Dr. Leonard Lamberson
Dr. John R. Lloyd
new technology ventures, product quality management, process improvement radical innovation, CMMI, TQM, continuous process improvement, commercialization
Can a department manager who launches technologically advanced products use a performance measurement tool to improve product quality? Business environments where technologically advanced products are launched to the market for the first time, known as new technology ventures (NTV’s), have lagged behind in adoption of measures that drive product quality. NTV’s have been slow to adopt such measures due to a lack of research that would substantiate the impact of any proposed performance management systems. Thus, the development of an effective and useful tool that measures and drives product quality performance in NTV environments, which has usable visual displays—would be a significant advancement. This research devised a scorecard to enable NTV managers to attain projectlevel product quality goals.
Scorecard development required (1) identification of management practices that impact product quality, (2) incorporation of these factors into a balanced scorecard, and (3) evaluation of this newly devised tool. Two studies were employed to accomplish these goals.
The first study used multiple linear equations to predict critical factors that drive product quality. Data were collected from experienced NTV managers using a previously validated survey instrument. The data analyses demonstrated significant correlations with measures of product quality management practices and product quality performance. Scorecard design methodology defined in the literature was used to convert the identified product quality management practices into performance measures.
The second study required the development and test of a valid and reliable measure of scorecard performance capability and usability. Data were collected from experienced NTV managers using this measure. It demonstrated significant correlations with measures of scorecard performance capability and managers’ decision to use the scorecard. This evaluation determined managers deemed the scorecard a usable tool and it would aid them in making effective product quality management decisions.
This scorecard is designed as a template for indigenous modification and may be quickly incorporated into a variety of new technology product development environments so NTV managers can guide their teams toward higher quality products. This may have a positive influence on launch rates of technologically advanced products since superior product quality has been positively correlated with launch success.
Hannum, Zella Jackson, "Development of a New Technology Venture Balanced Scorecard Derived from Critical Factors that Impact Product Quality" (2012). Dissertations. 38.