FFE Practices of NPD in Innovating Chinese Manufacturing Companies

Abstract

This paper focus on the study of some Chinese large and medium sized companies in manufacturing industry, we report on the key factors for success with regard to the Fuzzy Front End (FFE) activities of New Product Development (NPD) through large sample. We bring forward an analytical framework and test a causal model of relationships among key variables relating to the front end factors and success. The causal model is tested with AMOS using information from 160 completed NPD projects from Chinese manufacturing firms. Three conclusions of this study are summarized as follows: First, the more both market uncertainty and technical uncertainties are reduced during the front end, the higher is the effectiveness of NPD projects. Second, the more intensively new projects are planned prior to the start of development, the more both market and technical uncertainties are reduced. Finally, in the industry goods firms, it is easy for managers to develop the Initial Planning, and it has a greater impact on Reduction of Market Uncertainty compared to the consumer goods firms.