An examination of the moderation effects of NPD resource allocation and product innovativeness on the NPD stage process proficiency-new product market success relationship

Abstract

This study examines the relationships between new product success and the proficiency with which three major New Product Development (NPD) stages are executed, and the moderation of these relationships by product innovativeness and the allocation of NPD resources. This research demonstrates that NPD stage process proficiencies are significantly related to new product success, that the proficiency with which the commercialisation stage is performed is more important to new product success than the proficiency with which other stages are performed, and that NPD resource allocation moderates the NPD process proficiency–new product success relationship. Study implications for managers and scholars are offered.