Cost Effectiveness of New Product Development: The Influence of Cost Information, Environmental Innovation Practices and Designer’s Gender

Hence this study aims to test the effect of cost information, environmental innovation practices and designer’s gender on new product cost effectiveness. To test proposed hypothesis, this study adopt laboratory experiment with 117 participants. The result reveals significant joint effect of cost information and environmental innovation practices with designer’s gender. Experimental result underlines the important notion from contingency perspective which states that there will be no single fit factors which may have the effect on specific structure, system or performance in organization. Interaction effect of cost information and gender, and environmental innovation practices and gender, showed a significant effect based on analysis of variance performed in this study. Additional test of factors affecting cost effectiveness of new product design is the contribution of this study. While previous research had tested the effect of cost information on NPD performance, environmental issue has not been considered. Further, role of designer’s individual characteristic in terms of gender is examined as well.