Competition intensity as moderator for NPD success

Abstract

PurposeThis study aims to test the moderating impact of competition intensity on the relationships between the new product development (NPD) success factors and company success in NPD.Design/methodology/approachA mailed questionnaire collected information from 311 manufacturing companies to test the proposed model with moderated multivariate regression analysis.FindingsThe results corroborate the impact of competition intensity on the relationships between the success factors individually and company success performing NPD.Research limitations/implicationsDespite the relatively broad scope of the proposed model, other success factors and/or moderating and mediating variables may also be important. As such, these variables should be identified and tested in future studies.Practical implicationsIn practice, competition is viewed as an unavoidable factor beyond the control of managers within a company. Undeniably, competition is a great stimulant for business innovation. Thus, it is important for managers to understand the need, to focus attention managing the success factors most important to increase the likelihood of long-term success for NPD projects, particularly in markets under intense competition.Originality/valueWhile the study is grounded on well-established literature, its major constructs originated from relatively isolated areas of knowledge. The major contribution is empirically testing an integrated model for variables considered important for success in NPD and the moderating effect of intense competition.