Key success factors in new product development

Abstract

In this paper, after reviewing the salient literature on new product development and developing theory-based propositions, the findings of a study of new product development processes in a large US technology company is reported. Based on interviews and survey questionnaires from key informants, the results indicate that there are a number of keys to success in new product development using cross-functional teams. Product development teams that believe they have a monopoly on customer and technical knowledge are less likely to innovate. Soliciting and encouraging idea generation from multiple sources, both internal and external, leads to increased innovation. The results also lend support to the findings of prior research on the crucial role of champions and sponsors in the innovation process. Strong communication and goal directedness, however, did not play a key role in the innovation process.