METHOD APPLICATION IN NEW PRODUCT DEVELOPMENT AND THE IMPACT ON CROSS-FUNCTIONAL COLLABORATION AND NEW PRODUCT SUCCESS

Abstract

In recent years, scholars have devoted increasing attention to the use of methods in new product development. For the first time, we examine particularly the relationship between method application, cross-functional collaboration in new product development and new product success. The analysis of more than 400 new product development projects from 201 different companies shows that applying methods in new product development leads directly to the superior financial performance of the developed product (by reducing product costs, for example) and also leads indirectly to superior cross-functional collaboration during the development project. Both effects are analysed, showing how firms can actively improve on what in some cases are very high failure rates in the development of new products.