The impact of product design and process design on new product performance in manufacturing industry

Abstract

New product design and new product process design are important attributes in order a company to survive and sustain in competitive market. However, many new products which have been developed from research and development cannot compete in world market due to product performance issue. In addition, design of new product is unable to cope with the process design and machine capability in manufacturing process. The aims of this study is to identify the relationship between new product design and new product process design on new product performance in manufacturing industry. Random sampling and survey have been used by distributing questionnaire to 400 respondents for final study. Finally 80 respondents had replied with the respond rate of 20%. The study result shows that the extent level in new product design and new product process design are moderate and high level respectively. Furthermore, there is a significant relationship between new product process design and organisational performance (r(80) = 0.570, p < 0.05) in SMEs. However, there are no significant relationships between new product design and organisational performance (r(80) = 0.092, p > 0.05). The study is important for SMEs to gain insight on the effect of new product design and new product process design towards organizational performance.