New Product Development Failure Research Articles

The Analysis of Factors Contributing to the Success or Failure of New Product Development

Developing new products and staying ahead of the competition is critical for the survival of companies in a competitive environment. There are many factors affecting a product's chance of success in these environments, such as the company business model, the product type, the company's organisational structure and so on. The objective of this study was to define the relative importance (weights) of 19 factors that FMM companies can use to measure the success or failure of the new product development (NPD) they launch. We used group decision-making with the analytical hierarchy process (AHP) and considered three methods of handling the responses of outliers (DMs whose opinions differed from the majority). The results showed that customer satisfaction, proportion of total sales by new products, influence on the overall profit of the company, and growth of demand for the company products were the most important factors for measuring the success of innovation. However, it can happen that weight assignment methods produce very different rankings of factors and this situation can be challenging for the decision analyst.

Human Behavior in Project Portfolio Selection: Insights from an Experimental Study

ABSTRACTChoosing the right subset from a set of candidate projects is a key driver of success and failure in new product development (NPD). In many cases, managers make these decisions based on intuition or simple rules. We investigate how human decision makers act in the context of project portfolio selection conducting experimental studies based on the knapsack problem. We address the question about which decision rules people apply to select a portfolio and how cognitive limitations influence their selection process. Grounded in portfolio selection practice, we investigate subjects' adherence to four heuristics. Decision making is partially explained by adherence to one simple decision rule, but decision makers' cognitive capacity limits the application of this heuristic. Subjects' cognitive deficits can be avoided by offering basic decision support, thereby increasing their heuristic adherence and their performance.

Landscape of Innovation for Cardiovascular Pharmaceuticals: From Basic Science to New Molecular Entities

PurposeThis study examines the complete timelines of translational science for new cardiovascular therapeutics from the initiation of basic research leading to identification of new drug targets through clinical development and US Food and Drug Administration (FDA) approval of new molecular entities (NMEs) based on this research. MethodsThis work extends previous studies by examining the association between the growth of research on drug targets and approval of NMEs associated with these targets. Drawing on research on innovation in other technology sectors, where technological maturity is an important determinant in the success or failure of new product development, an analytical model was used to characterize the growth of research related to the known targets for all 168 approved cardiovascular therapeutics. FindingsCategorizing and mapping the technological maturity of cardiovascular therapeutics reveal that (1) there has been a distinct transition from phenotypic to targeted methods for drug discovery, (2) the durations of clinical and regulatory processes were significantly influenced by changes in FDA practice, and (3) the longest phase of the translational process was the time required for technology to advance from initiation of research to a statistically defined established point of technology maturation (mean, 30.8 years). ImplicationsThis work reveals a normative association between metrics of research maturation and approval of new cardiovascular therapeutics and suggests strategies for advancing translational science by accelerating basic and applied research and improving the synchrony between the maturation of this research and drug development initiatives.

When new product development fails in China: mediating effects of voice behaviour and learning from failure

This paper investigates conflicts following a new product development (NPD) failure. Conducted in a Chinese business setting, the study examines whether voice behaviour and learning from failure mediate the relationship between task- and emotional conflict emerging from NPD failure. Our findings indicate that voice behaviour and learning from failure are necessary to effectively reduce task and emotional conflict and thus to enhance future NPD. Specifically, it is revealed that emotional conflict leads to a reduced level; and that voice behaviour and learning from failure are significant mediators that influences the relationships between emotional and task conflicts with it.

The multi-criteria group decision making methodology using type 2 fuzzy linguistic judgments

This paper develops an integrated methodology for multiple criteria and multiple experts decision making problems using type 2 fuzzy sets (T2FS) as the linguistic judgments. The experts or decision maker's opinions are in linguistics forms. The proposed approach is the extension of the analytic hierarchy process (AHP) method for multiple experts. The pairwise or relative comparisons of decision linguistic judgments are characterized by interval type 2 fuzzy sets (IT2FS). The integrated methodology consists of the following stages: 1. Construct IT2FS pairwise comparison matrix (PCM), 2. Elicit IT2FS weights and rates, 3. Normalize the IT2FS weights and rates, 4. Synthesize the IT2FS weights and rates, 5. Calculate the global IT2FS rates, 6. Determine the final decision priority. At the outset of the decision making the IT2FS PCM for a set of criteria is created. The quadratic programming models are constructed to elicit the absolute IT2FS weights of the criteria in the sense of minimizing the least squares logarithmic regression functions. A normalization procedure is introduced for the IT2FS vector to obtain the well-defined and normalized IT2FS weights. Two approaches, the linear programming model and the IT2 fuzzy weighted average (FWA), are developed to synthesize and aggregate the local rates and weights. Thus, the overall global IT2FS rates for the alternatives are obtained. The final decision then can be concluded by the priority of the overall IT2FS rates of the alternatives. The proposed approach is applied to New Product Development (NPD) project screening. NPD is largely uncertain, because of competition accompanied with modern technology and market changes. It always leads to failure of New Product Development. The final project screening decision is obtained from the overall global IT2FS rates of the projects with respect to the screening criteria.

“We must have the wrong consumers” – a case study on new food product development failure

Purpose – The aim of this paper is to investigate, in detail, an unsuccessful food development project that took place in 2008-2010. The case is studied from the viewpoint of an interpretive paradigm. This article concentrates on constructing the critical elements that led to a food development project failure. The plan was to have a traditional Finnish dish updated and introduced as a mass produced high-end convenience food. The project included new convenience food development, packaging design, consumer market research and a sensory study to back up the food product development on behalf of a newly established company. Theoretical grounds for the case are based on the new product development (NPD) research process in the food sector. Design/methodology/approach – The method applied is an explorative single within-case study. The research data were mainly obtained from qualitative materials that ranged from marketing plans to case study field notes compiled by the researchers. Quantitative data were also obtained from various types of materials but to a lesser extent. Findings – The results of the study show that the failure of new product development was connected to the factors identified in classic NPD research. In addition, five phenomena that contributed to product development failure were constructed: path-dependency; “information condensations”; the illusion of mutual knowledge and understanding; practices of problem definition; and window-of-opportunity effects. The results are presented in a form of analytical generalisation that can be applied, with certain restrictions, to other contexts for new food product development. Originality/value – Failure rates of NPD have remained the same for the last 30 years in the food sector. Failed NPD projects can be valuable assets for the food industry when properly analysed. Examination of successful NPD projects has provided valuable lists of success factors, but knowledge on phenomena having an effect on NPD failure is needed.

New product concept selection: an integrated approach using data envelopment analysis (DEA) and conjoint analysis (CA)

New product concept development is considered to be a critical step and the main determinant for the success or failure of new product development. This paper introduces a new methodology for the evaluation and selection of new product concepts using Data Envelopment Analysis (DEA) and Conjoint Analysis (CA). The proposed methodology integrates customer perceived value of the new product concepts through the use of CA and uses this perceived value as a measure for the new concepts performance. In addition, the methodology takes into account the development burden that a company has to perform to bring the new concept into a state of market readiness. This development burden is estimated by determining two main factors, namely the burden to produce and the burden to sell the new product concept. The customer perceived value and the development burden are both used in DEA to evaluate the new product concepts resulting in the selection of the best product concept. The applicability of the proposed methodology is illustrated through a case study. Keywords: Product development, concept selection, data envelopment analysis, conjoint analysis.

Investor Reactions to New Product Development Failures

The authors develop a model of investor reactions to new product development (NPD) failures in high technology firms. They propose that a firm’s financial and managerial capabilities, and its strategic focus on R&D, influence investors’ perceptions of the firm’s market value after NPD failure and that these effects are contingent on the development stage of the failed product. Using data on 148 NPD failures of publicly traded biopharmaceutical firms and an event study methodology the authors find support for their hypotheses. They show that the relationships between a firm’s (a) financial capabilities, (b) managerial capabilities, and (c) strategic focus on R&D, respectively, and the decline of firm market value after NPD failure are more negative for products that fail in late development stages than for products that fail in early development stages. The authors’ results highlight the importance of a conjoint consideration of product-level and organizational-level effects in explaining investor reactions to NPD outcomes.

Environmental scanning in Thai food SMEs

PurposeSome small and medium‐sized enterprises (SMEs) in the Thai food industry put a lot of effort into keeping up with changes of consumption patterns locally and in the South East Asia region. To see how successfully they are able to create competitive advantage, aims to examine the impact of environmental scanning practices on new product development (NPD) outcomes among SMEs in the Thai food industry. The technology strategy of the company influences how much it uses environmental scanning, and technology turbulence can play a role in exactly how critical is good knowledge of the external environment.Design/methodology/approachQualitative research was conducted using semi‐structured in‐depth interviews with food experts and SME owners.FindingsResults suggest that SMEs that practice environmental scanning are better able to develop appropriate new food products. Technology strategy plays a role in how much scanning they use, with a more proactive technology strategy requiring more extensive scanning. Environmental turbulence, including changes in technology, can cause failure in NPD if scanning does not keep companies aware of the situation.Originality/valueA simple conceptual model is proposed to show how technology strategy, technological turbulence, and environmental scanning affect NPD performance.

Navigating innovation: a diagnostic tool supporting the process

This paper considers organisations that have adopted the new product development (NPD) process to improve their innovative capabilities. It aims to bring an understanding of the underlying characteristics that may contribute to the degrees of success or failure of NPD within organisations. The paper presents a diagnostic tool described as the “innovation compass” that allows the comparison of empirical findings from case studies. In this paper the innovation compass will be used to illustrate the findings from two case studies which differ on certain characteristics. It permits the quantitative data gathered from the research to be directly compared, facilitating organisations to benchmark. The qualitative data substantiate and elaborate on the quantitative findings, providing a contextual understanding of the companies’ product development process. The paper concludes that understanding the context is an important factor in ensuring an effective NPD process.

Factors for success in R&D projects and new product innovation: a contextual framework

There have been many attempts to discover the critical factors that can indicate the success or failure of R&D projects and new product introductions. Because of the large number of studies that exist, the authors undertook an extensive review of the germane literature to find whether a general agreement exists about the factors leading to success or failure in new product development and R&D projects. The review shows first that even with a conservative approach to listing significant factors, the list is very long. Second, comparing the factors across studies demonstrates that different authors have found that the magnitude of significance and the direction of influence vary. Third, given the differences in context, the meaning of similar factors may also vary. The contradictory findings lead us to propose a contingency framework for the new product and R&D project models. This framework consists of a contingency cube with three contextual dimensions. Based on this framework, we propose a set of propositions. We conclude this paper with a discussion of the implications of a contingent approach for both researchers and managers in the area of management of new products and R&D projects.

Success in New Product Development: The Lessons from the Past

The major research studies into success and failure in new product development that have been conducted over the last 40 years are reviewed. These have provided consistent evidence, especially in the management of the development process, of attributes associated with success. It is shown that most of the studies have produced results that are not in a form for easy application by practitioners. A methodology as to how the past lessons may be applied practically is proposed.

Canonical correlation analysis of unobserved relationships in the new product process

Previous studies of success and failure in new product development have examined the effects of numerous variables upon new product outcomes. Some of these variables are controllable by the firm; many are not. This study employs canonical correlation analysis to investigate the nature of the interactions within and between two sets of variables (controllable and environmental) in the new product process. Several insightful implications for new product management are obtained and presented. Among these is the need for production and marketing synergy in new product development

The Creative Catastrophe

Abstract: The literature of creativity consists mainly of prescriptive techniques and catalogues thereof. No unifying framework or vocabulary has emerged to enable comparisons to be made. It is suggested that the Catastrophe Theory of Thorn, though controversial, can contribute to this end.A version of the theory is used in an attempt to describe factors influencing success or failure in new product development and design in manufacturing industry and to indicate the position of de Bono's Lateral Thinking’ in the field of creativity.