Determining the Successful Factor of New Product Development in Malaysia

Abstract

Purpose: The purpose of this paper is to shed light on what factors influence the new product development performance (NPDP) successful in Malaysia manufacturing enterprises and identify the key success (organizational capabilities, strategies capabilities, knowledge resources, fundamental research, application R&D, manufacturing capabilities) when develop the new product. Design/methodology/approach: Quantitative research setting was applied in Malaysia manufacturing enterprises that been choose. Data were collected through a survey questionnaire responded by 100 respondent in the Manufacturing Firms in Malaysia. The relationship proposed in the developed theoretical framework were represented through three hypothesis: H1- There is positive correlation on organizational capabilities towards the new product development. H2 - There is positive correlation on strategies capabilities towards the new product development. H3 - There is positive correlation on knowledge resources towards the new product development. H4 - There is positive correlation on fundamental research towards the new product development. H5 - There is positive correlation on application R&D towards the new product development. H6 - There is positive correlation on manufacturing capabilities towards the new product development. Linear regression, ANOVA and Pearson correlation were used to test the hypotheses. Findings: The study reveals that the firm’s strategies capabilities have significant influence on the new product development performance of Malaysia manufacturing enterprises. Interestingly, organizational capabilities, knowledge resources, fundamental research, application R&D and manufacturing capabilities have no significant. Practical implications: From a practical perspective, the relationships among successful factor for developing new product performance may provide a clue regarding how firms can promote the new product to the market. Moreover, the key factors of NPDP found in the study are useful for policy makers and managers of Malaysia firms to make decision. Originality/value: This study is one of the first studies to apply the structure equation model method to measure the relationship between factor success in new product development performance and product competitiveness under the background of Malaysia manufacturing. The results provide a new framework on the how technological innovation capability influence product competitiveness of Malaysia manufacturing firms. From a managerial perspective, this study identifies several crucial factors to support new product development and discusses the implications of these factors for developing organizational strategies that encourage technological innovation.