Factors Of New Product Development Research Articles

Overview and prioritization of critical success factors in NPD models for the chemical industry

Purpose: The purpose of the article is to review NPD models and identify critical success factors for new product development in the chemical industry. Design/methodology/approach: The systematic review of the literature was applied in the paper and the AHP method was used to build a hierarchical model for determining the importance of CFSs. Findings: The paper characterizes the concepts of new product development and general models of new product development. Older (pre-2000) and newer generation studies were included among the models described. Data analysis of new product development studies in the chemical industry was carried out. Based on the literature analysis, key factors determining the success of a new product were selected, with a division into general and typical elements of the industry in question. Research limitations/implications: The prioritization of CFSs will allow in the next step the analytic hierarchy process of NPD models, on the basis of which it will be possible to determine which of the analyzed models is most suitable for chemical products. Practical implications: Most chemical products are designed using trial-and-error techniques based on experimentation, making NPD in the chemical industry more iterative. This often involves generating a huge number of chemical components, and this means that the search area can be very large. It is therefore reasonable to look for decision support tools to facilitate the selection of necessary components. The selection of chemical product ideas should be based not only on an analysis of what is possible to produce, but also on an analysis of what the market would like to buy. The specifics of chemical products and changes related to 21st century trends are forcing the determination of appropriate CFSs for the chemical industry. Originality/value: The chemical industry is one of the world’s key industries, whose products are used in almost every area of life. Despite this high relevance, there has been no attempt to date to systematize the issues of developing new product lines or portfolios in this industry. Keywords: new product development model (NPD), critical success factors (CFSs), analytic hierarchy process (AHP), prioritization, chemical industry. Category of the paper: research paper, general review.

NEW PRODUCT DEVELOPMENT AND MARKET LAUNCH IN COSMETICS INDUSTRY

Even today, industrial companies are struggling on new product development and market launch. This article reviews the theoretical aspects of new product development and commercialization processes and the factors determining their success. Overviewed Baltic States cosmetics industry market and trends. The study focused on the success factors of new product development and market launch processes in the cosmetics industry. The aim was to identify and analyze the success factors of cosmetic product development and market launch processes and to provide a solution model. Identified factors prevailing in the development and launch of new products in the cosmetics industry sector and the connections between them. Investigated the influence of these factors on the success of new products in the market. The paper presents the results of a survey of companies in the Baltic cosmetics industry. Based on the results of the research, a model for the development and launch of new products for the cosmetics industry is presented.

Identifying and ranking risks using combined FMEA-TOPSIS method for new product development in the dairy industry and offering mitigation strategies: case study of Ramak Company

Food industry as one of the most important and influential industries plays an important role in the health and well-being of the community. It is also important for the country’s economy, export, and inter-state relations. As the industry expands and competition becomes tougher, the development of new products that can compete in this competitive market has become a major concern for manufacturers but the production of new products is always associated with uncertainties and risks, the management of which is the core of the new product development process and plays an important role in the success of industries. Risks occur in different shapes at every stage of the new product development process from design to consumption. In this study, the new product development process in a dairy company is investigated. A quantitative approach is proposed to identify and rank the risks affecting this process using the combined Failure Mode and Effects Analysis (FMEA) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method. Shannon entropy method is also used to weight the criteria in the TOPSIS method. Identified risks by considering expert’s opinion were scored from 0 to 10 regarding FMEA method factors (Severity, Occurrence, Detective), then by utilizing Shannon entropy method in TOPSIS each risk was weighted and ranked. 14 risks are first identified and then ranked based on 30 experts opinions from different parts of the company such as marketing, accounting, engineering, staff, management etc. and prior studies. The results show that ’Mismatching product Specifications with costumer needs and tastes’ and ’The emergence of a new rival’ are the most important risk factors for new product development. Risk reduction strategies based on the standard of project management, firm strengths and weaknesses and expert opinions on all risk factors are provided. At the end, some recommendations are provided to the managers of the company. The proposed approach is applied in Ramak Company and the results are approved by experts, more importantly, they are agree that the proposed approach can be used to identify, evaluate and present risk reduction strategies in the food industry.

Critical Success Factors of New Product Development: Evidence from Select Cases

Abstract Background: The unique, yet complex, new product development (NPD) process represents one of firms’ most significant operations that impose high weightage onto its profitability margins and market reputation. Objectives: The object of the research is to identify critical success factors (CSFs) of a new product development in Dubai firms. Methods/Approach: The paper uses literature as a basis for identifying critical success factors for a new product development, which is supported by a semi-structured interview of senior management-level executives in Dubai. Results: To pinpoint a set of the most influential CSFs, 12 factors for the NPD process are highlighted, based on their reoccurrence patterns in the literature and semi-structured interviews. Impact levels of 12 CSFs on the NPD process are expressed through a presentation from the highest to the lowest recurrent factor. Conclusions: Each CSF’s role in driving the NPD process to success has also been justified using real-time evidence, depicted throughout 4 case studies from different industries.

A conceptual model for finding key factors for new product development evaluation

This paper develops a conceptual model for finding key factors for new product development (NPD) evaluation. It builds on the work of the most cited and published authors on innovation management, but transfers attention from advertising aspects and efficiency, to factors identified within the NPD process such as new product project definition, a firm’s resources, organisation-product fit, and commercial entity, that would lead to success with “Information acquired” being identified as the underlying key factor. This paper presents a summary of the results of correlation coefficients calculated between the factors identified and outcome measures, derived from the leading authors’ work. Further, analytic hierarchy process (AHP) was used to evaluate the results of the correlation coefficients of sub-factors, which were modified by considering the ranking of each author.

Hypotheses Derivation About Facilitating Factors for New Product Development of Manufacturing SMEs: From the Perspective of Absorptive Capacity

Hypotheses Derivation About Facilitating Factors for New Product Development of Manufacturing SMEs: From the Perspective of Absorptive Capacity

Prioritizing Key Supply Chain Risks Using the Risk Assessment Matrix and Shannon Fuzzy Entropy — with a Case Study in the Home Appliance Industry

The aim of this study is to present an approach for identifying and prioritizing risk factors of supply chain in the home appliance industry. First, the indexes related to the supply chain risk have been determined by literature review; and then the indexes have been refined by consulting experts; finally, the six main indexes including supplier, manufacturer, customer, environment, distributor and information as well as 32 subsidiary indexes for supply chain risks have been selected. In order to assess the indexes, a fuzzy questionnaire has been developed and distributed to 15 managers and employees of Snowa as one of the Entekhab Industrial Group corporate brands, the main home appliance manufacturing company in Iran. Research population included managers and experts of the company and the analysis approaches included risk-assessment matrix and Shannon fuzzy entropy. Findings indicated that environment, manufacturer and supplier indexes with the weights of 0.105, 0.102 and 0.095, respectively were prioritized as the top three risk factors in product development. Furthermore, the subsidiary indexes of raw material alteration, delay in supply of the demand, work force, after-sale services, competitors and lack of political stability were among the top risk factors of new product development.

Critical Success Factors for New Product Development in Biotechnology Companies

The development of new products has become increasingly critical for the competitiveness of companies, due to increased diversity and variety of products, the reduction of product life cycles, and, primarily, globalization of markets. Thus, the identification and prioritization of critical success factors for developing new products is important, particularly for the high degree of risk and uncertainty involved. The main objective of this article is the identification and prioritization of critical success factors in new product development projects in biotechnology companies in the state of Minas Gerais, Brazil. The research method used was a survey questionnaire, which was sent to a sample of 31 biotechnology companies in Minas Gerais state. The principal findings of this research are that interpersonal skills/relationships of the project leader and technical skills are the most critical factors for successful new product development in this industry. The implications for the biotechnology industry in general, as well as for those responsible for managing new product development, are discussed.

Analysis of success factors for a new product development initiative in Indian automotive industry: an ISM approach

This paper aims at analysing various factors driving towards success of new product development (NPD) initiatives in Indian automotive industry. The present research has been carried out in three phases: identification of factors from the literature, survey of Indian automotive industries, and qualitative analysis using interpretive structural modelling (ISM) for studying the interaction among the factors. The knowledge of dominating success factors, and the adoption of such an ISM-based model of success factors for NPD would assist decision makers and practitioners of new product development in focusing their resources on these major factors while undertaking new product ventures at their organisation. The study is carried out for identifying and analysing the critical success factors for NPD in Indian automotive sector.

Approaches to Product Development and Innovation

In this column Cauvain describes the drivers behind and processes involved in product development and innovation in the baking industry. There are many drivers behind innovation and the development of new products, including quality optimization, reduction of product variability, optimization of process efficiency, and reduction of manufacturing costs. In some cases, we are forced to innovate because of external pressures on raw material availability and pricing; new government regulations; or changes in consumer demands. The processes associated with innovation are more singular—at least to the extent that they comprise having an idea, trying out different ideas, and moving progressively upward in scale. Ultimately the human factor in new product development remains a critical factor. This is especially true for innovation, which often requires thought processes that involve “breaking the rules” or “thinking outside the box.” The process of innovation requires the assembly of a wide range of knowledge to...

New Product Development and Innovation in the Maquiladora Industry: A Causal Model

Companies seek to stand out from their competitors and react to other competitive threats. Making a difference means doing things differently in order to create a product that other companies cannot provide. This can be achieved through an innovation process. This article analyses, by means of a structural equation model, the current situation of Mexican maquiladora companies, which face the constant challenge of product innovation. The model associates three success factors for new product development (product, organization, and production process characteristics as independent latent variables) with benefits gained by customers and companies (dependent latent variables). Results show that, in the Mexican maquiladora sector, organizational characteristics and production processes characteristics explain only 31% of the variability (R2 = 0.31), and it seems necessary to integrate other aspects. The relationship between customer benefits and company benefits explains 58% of the variability, the largest proportion in the model (R2 = 0.58).

Do We Have to Get Along to Innovate? The Influence of Multilevel Social Cohesion on New Product and New Service Development

In this study, based on the Comparative Performance Assessment Study survey conducted by the Product Development Management Association, the authors develop and test a model which considers the antecedents and performance outcomes of social cohesion, a seemingly critical organizational factor in new product development (NPD). Using a sample of over 450 innovation and product development professionals from North America, Europe, and Asia, social cohesion is conceptualized and tested across three levels—within team cohesion, between team cohesion, and between firm cohesion. The results of a structural equation model indicate several differences between the antecedents of the varying forms of social cohesion. A post hoc exploration of the difference between goods‐ versus service‐dominant firms provides a clearer picture of cohesion's influence on innovation outcomes. Specifically, within team and between team cohesion are positively associated with new services performance, while for traditional goods‐based NPD, within team, between team, and between firm cohesion all appear to be positively related to performance. The findings suggest that high social cohesion is not always optimal and that managers should focus on specific types or levels of social cohesion as opposed to thinking about social cohesion as a one‐dimensional construct. The findings also suggest that goods‐ and service‐centric firms can use different tactics or strategies to drive social cohesion and, ultimately, new product performance, and that innovation managers may need to allocate resources differently depending on the nature of the market offering being developed. The paper also presents several implications for theory and practice, as well as future research directions related to the various levels of social cohesion and their influence on new product and new service performance.

A Study on the Critical Success Factors for New Product Development in Korean SMEs

본 연구는 다양한 시장의 환경과 기업이 보유한 자원의 제약 속에서 중소기업의 신제품 개발 전략, 신제품 개발과정과 조직적 요인들이 성과에 미치는 관계를 실증적으로 분석하여 학문적인 기여와 함께 정책적이고 실무적인 시사점을 제공하고자 하였다. 이를 위하여 기존에 수행된 다양한 선행연구를 검토하고 실증문헌에 대한 리뷰 및 메타분석 문헌을 종합적으로 정리하였다. 실증연구 중에서 신제품 개발의 핵심성공요인(critical success factor)을 탐구한 연구들을 분석하였으며 본 연구의 핵심주제인 중소기업에 관련된 연구, 한국적 맥락을 포함하는 연구를 중심으로 실증문헌을 재정리하였다. 이를 토대로 중소기업의 신제품 개발 성과결정요인을 분석하기 위한 연구 모형을 도출하고 기존 선행연구를 참조하여 설문지를 작성하였다.BR 설문조사는 기업담당자에게 유선 전화를 통하여 사전에 설문에 대한 의향을 조사하고 메일로 조사를 진행하였다. 설문조사를 통하여 기업이 수행한 신제품 개발프로젝트의 성공과 실패 요인에 대하여 쌍으로 비교된 자료를 수집하였다. 분석방법은 신제품의 성과와 다양한 요인들 간에 상관분석, 성공과 실패 프로젝트의 성공요인에 대한 차이분석, 회귀분석 등을 실시하여 핵심성공요인을 도출하고 기존의 연구결과와 비교하였다. BR 실증분석을 바탕으로 확인된 주요한 결론은 다음과 같다. 첫째, 기업규모에 관계없이 제품의 경쟁우위, 개발과정, 그리고 개발과정의 이후 단계인 시장출시 노력 등이 성공에 매우 높은 영향관계를 가지는 것을 확인할 수 있었다. 중소기업의 경우 개발과정의 이후단계인 시장출시 노력이 성공에 매우 높은 영향관계를 가지고 있었다. 둘째, 기존연구에서 확인된 바와 같이 시장 환경의 요인은 상관관계 분석이나 성공과 실패간의 차이검증 결과 성공과 실패를 결정하는 주요한 요인이 아닌 것으로 나타났다. 즉 시장경쟁정도가 성과에 직접적으로 영향을 미치기 보다는 다른 변수들과의 상호작용을 통하여 영향을 미치는 것을 확인할 수 있었다.. 셋째, 기업유형별로 성공과 실패에 영향을 주는 핵심요인에 많은 차이를 확인할 수 있었다. 중소기업의 경우 성공에 가장 중요한 요인으로 출시노력을 꼽을 수 있었으며 신제품 개발과정의 능숙함, 신제품의 경쟁우위, 신제품의 속성, 개발부서간 의사소통 수준 등은 중소기업의 유형에 따라 다른 결과를 보였다. BR 결론적으로 중소기업에 중요한 요인을 종합하여 보면 중견․대기업과 비교하여 시장의 출시노력이 가장 중요한 요인으로 확인되었으며 이외에 일반 중소기업의 경우 신제품의 특성이나 아이디어의 속성 등이 중요하고 혁신형 중소기업의 경우 신제품 개발부선 간 의사소통이 중요한 요인임을 알 수 있다.

Constructing an Innovative Design Model by Design Thinking to Evaluate New Product Development Effectiveness of Product-service System

Service design is a revolution to drive industry to be innovative. Design thinking, however, is the most effective way for the innovation during the process of service design. Service innovation, design methods, or tools of new product development are made for customers to create new value and expected to construct user-concerted product service system by macroscopic viewpoints of design and service experiences. Therefore, this research aims at constructing an objective systemic innovative design model through in-depth interview and grounded theory to discuss innovative factors of new product development and limitations of innovation for customer needs-oriented design thinking index construction and to review the completeness of current industrial product service system. The contributions of this research show six aspects of innovative design model as rules or principles of innovative development on new product development of industry including innovative design basis, innovative design development, innovative design capabilities, innovative design barriers, innovative design risks and effectiveness evaluation. For the aspect of innovative design basis, designer characteristics are the most influential beginning for product innovative design. For the aspect of innovative design development, the most significant is design process thinking model. For the aspect of innovative design capabilities, the most significant is designers' capabilities training. For the aspect of innovative design barriers, innovative known limitations and unknown restrictions are both important. For the aspect of innovative design risks, the most significant is product design rick management. For the aspect of effectiveness evaluation, the most significant is new product development effectiveness evaluation. Therefore, a systemic innovative design model based on six aspects is constructed to be a criterion of product innovative development of design for domestic industry. Product service system is a fully achievement for design service, and design service is a sequence of innovative journey that brings not only innovation for technology and products on new product development by design thinking but also commercial opportunities for industries with effectiveness.

A knowledge sharing framework for black, grey and white box supplier configurations in new product development

Managing supplier collaboration is increasingly cited as a key success factor in new product development (NPD) performance. Knowledge sharing between customer and supplier is a critical issue to manage collaboration but one which has only been partially investigated in the inter-organisational NPD context. This means that the specific characteristics of knowledge sharing according to the three classical supplier involvement configurations (black box: design is supplier driver, grey box: joint design and white box: design is customer driven) are still largely unknown. This research proposes to fill this gap by presenting a conceptual framework for knowledge sharing according to the supplier involvement configuration. Knowledge sharing integrates knowledge transfer, translation and transformation. A qualitative methodology based on cross-case comparisons of six projects in two companies is used. This research shows that the dynamics of knowledge sharing depend on each configuration. Thus, for black box projects, knowledge translation is a prerequisite for knowledge transfer. For grey box projects, knowledge transfer and translation are initiated simultaneously in a continuous loop. For white box projects, knowledge transfer is the key activity and potentially generates knowledge translation. The results suggest that managers should pay attention to translation activities which are critical for the success of co-development projects.

Explore Critical Success Factors of New Product Development in Iranian\'s Food Industry

In recent decades, the rate of new product development increased due to the burst of competition between organizations in developing new products, services and new markets. In such a competitive condition, the main challenge of organizations is to develop new products according to the goals of the organization and needs of customers. Therefore, this study tries to propose success factors in new product development for food industry based on a model developed using a mixed method. The preliminary model is proposed by reviewing related literature in innovation management and product development and also using semi-structured interviews with executive managers of food industry. Then using exploratory and confirmatory factor analysis, the validity of the model and final scales were analyzed. The results show that Strategic Thinking (ST), Product Features (PF), Skills and Abilities (SA), internal and external Team Involvement (TI), Supply Chain ability (SC), Development Process (DP) have a correlation with the success of new product development in food industries of Iran. Among these dimensions, Market Characteristic (MC) has the highest importance and after that Skills and Abilities (SA), internal and external Team Involvement (TI) got the other ranks, respectively.

Apply GM(h,N) Model to Analyze the Influence Factor in Hybrid Vehicles

This research applied Fuzzy Delphi Analytic Hierarchy Process (FDAHP) to evaluate the critical success factors for New Product Development (NPD) by using a hybrid vehicle as an example. Grey Relational Analysis (GRA) is used to assess the level of gray relation among these factors, followed by empirical analysis to construct the NPD strategy. The empirical result illustrates that the indicators system can identify brand positioning and image moulding of product efficiency. The NPD strategy will be established by the revolutionary NPD model. In addition, this indicators system aids in identify ing NPD targets and allocates strategic resources.

Critical Success Factors of New Product Development and Impact on Performance of Malaysian Automotive Industry

This research paper shows a framework to conduct an empirical study in Malaysian automotive industry in order to improve their performance. There are factors which are effective factors in improving performance of Malaysian automotive companies namely top management support, cross functional teamwork, new product development (NPD) process, NPD strategies, and market research activities. The critical success factor of NPD is playing a fundamental role in determining the performance in Malaysian automotive companies. In this research study, a framework has been developed that includes critical success factors of NPD and project achievement to study their influence on the performance of Malaysian automotive companies. It is hoped that this paper can provide an academic source for both academicians and managers due to investigate the relationship between critical success factors of total NPD, project achievement and company performance in a systematic manner to increase successful rate of NPD progress.

Innovation in small and medium-sized companies: Knowledge integration mechanisms and the role of top managers’ networks

IntroductionPrevious research has delivered strong theoretical and empirical evidence that successful product innovations result from the of organizations to share and create new and relevant knowledge (e.g. Nonaka & Takeuchi, 1995). In particular, it is argued that the organizational combinative ability (Kogut & Zander, 1992), that is flexible integration of the specialized knowledge of various organizational members (Grant, 1996), plays critical role for innovations. Contrary to the past, as expertise could be centralized in single person who knew [...] the product technology, production process, and means to market goods to others (Griffin & Hauser, 1996, p. 192), now an intensive cooperation and knowledge flow between different functional specialties (e.g. Maltz et al., 2001, p. 72) as well as hierarchical levels (e.g. Aalbers et al., 2011) becomes an important precondition for product innovation. Past research has revealed that particularly for highly innovative products, knowledge integration within organizations plays crucial role in increasing new product performance (Tsai et al., 2012). Previous studies also identified number of integration mechanisms by which crossborder exchange of knowledge within organizations can be fostered (e.g. Griffin & Hauser, 1996; Leenders & Wierenga, 2002). For instance, in comprehensive review of empirical work into the success factors of new product development (NPD), Ernst (2002) found that cross-functional project teams have both direct and an indirect positive effect on the success of new products (Ernst, 2002). More specifically, as argued by Griffin and Hauser (1996, p. 204), such cross-functional product development teams lead to higher marketplace success and shorter times to market by decreasing the barriers of functionally specialized thought worlds, languages and organizational responsibilities and providing forum in which information is utilized better, decisions are made more effectively, and conflicts are resolved. In similar vein, Valle and Avella (2003) found that firms which use cross-functional teams, are characterized by more effective NPD process (that is, lower development times and costs, and superior products) and higher percentage of new products that are successful in the market.In addition to cross-functional teams, large number of empirical studies identified the support of senior management as critical success factor of NPD (e.g. Brown & Eisenhardt, 1995; Cooper et al., 2004a). Senior managers provide the NPD team with the financial and political resources necessary to accelerate the progress of development projects (Brown & Eisenhardt, 1995). Moreover, senior managers help the NPD team to align their projects with the firm's overall strategic orientation. Thus, as Aalbers et al. (2011, p. 5) point out, vertical cross-hierarchy ties can provide the team with access to knowledge and information of different nature than that which the team accesses through its horizontal cross-unit ties. Accordingly, the participation of senior management in the gate meetings is seen as an important mechanism for knowledge integration within the new product development process (e.g. Cooper et al., 2004a).While numerous studies have addressed multiple aspects of integration and its impact on innovation performance, one important issue is still under-explored. In the samples of previous empirical studies big organizations were largely overrepresented (e.g. Griffin, 1997; Hauschildt & Salomo, 2011) and the contingencies of small and medium-sized enterprises (SMEs) have not been considered in comprehensive manner. This is critical point, since, as Welsh and White (1981) note, a small business is not little big business. Thus, management principles that have proven to be successful in large companies may prove the opposite in SMEs (Welsh & White, 1981). As SMEs constitute over 99 percent of all companies in the European Union, reinforcing national economies by their employment offers and revenues (Eurostat, 2009), focused analysis of knowledge integration in these companies is important from both the theoretical and the practical perspective. …

Key Success Factors of Software-Intensive Product Development

This paper revisits the key success factors of new product development by investigating a software-intensive product development project, which is presented in form of a detailed qualitative case study. The result reconfirms the existing wisdom that factors like top management sponsorship, presence of a heavy-weight project manager, close cross-functional collaboration and communication, skill routines and supporting tools used during the project execution as well as unambiguous and systematic product concept are essential enablers for the product development project to become a success. The case study has also revealed a number of additional aspects such as management competences in geographical coordination, complementary incentive system and contract management which, if managed insufficiently, may lead to unsatisfactory performance of the product development. Innovation managers in software industry may therefore pay attention to them, in order to improve the product development quality.