Abstract

Today, many organizations have realized an important of pre-development process in order to compete with competitor through drastically introduce new product in the market. In view of that, understanding critical factors that contribute to successful pre-development process implementation is becoming the more important. However, most of past studies were conducted in large organization, very little has been done in small and medium enterprise (SMEs). SMEs have certain limitation in terms of their financial, human, technical, and resources that could hinder their progress towards implementing pre-development process. This paper reviews and analyses CSFs developed by previous authors in order to propose a set of CSFs which were thought to be critical for SMEs. After that the questionnaire developed in this study will be analysis using factors analysis and reliability test in order to examine construct validity and reliability. An initial draft of the questionnaire was developed based on the literature. The questionnaire was pre-tested by academicians and industry practitioners. After that the questionnaire was piloted at 55 food and beverage manufacturing SMEs to check its reliability by using Cronbach’s alpha value. In addition, principle component analysis was carried out to test the construct validity. All the factors in the survey instrument had a Cronbach’s alpha coefficient of more than 0.7 which may be considered satisfactory. Through factor analysis, all KMO values were found above acceptable value of 0.50. All Bartlett’s Test in this analysis was found to be significant. Therefore the instrument is valid and reliable and considered as satisfactory. Nine CSFs, which are believed suitable for SMEs have been proposed in this paper. Through systematic identification and validation, it is hope that the set of CSFs could be used as guides for SMEs to implement pre-development process successfully.

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