Barriers to successful new product development within small manufacturing companies

Abstract

PurposeThe objective of the research is to identify and analyse the main barriers to new product development within small manufacturing companies.Design/methodology/approachThe study has employed a longitudinal case‐study methodology, which has focused on data gathering from three manufacturing companies that have undertaken new product development activities in‐house. The detailed case‐study material has been derived from project documentation and interviews with personnel at various technical and managerial levels.FindingsThree generic managerial issues that impinge on new product development are identified: the influence of a dominant owner/manager; a focus on time and cost ahead of other key factors; and a failure to understand the importance of product design.Research limitations/implicationsAlthough the case studies are detailed, only three manufacturing companies are assessed. Future research should expand on the generic issues, increase the number of case‐study companies, and ideally include an assessment of new product development within small companies from outside of the UK.Practical implicationsIn order to overcome some of the inevitable managerial limitations within small companies, new product development activities should seek to promote a more systematic approach to design. This may encompass formal design training for senior managers and the implementation of simple design tools, such as product design specifications.Originality/valueBarriers to and opportunities for new product development within small manufacturing companies are neglected areas in terms of detailed research studies. The issues highlighted in this paper will help to inform managers, practitioners and policy makers who are engaged in enhancing the competitive advantage of “traditional” manufacturing companies.