Success Factors In New Product Development Research Articles

New Product Development in the Pharmaceutical Industry: Evidence from Iran

In today’s competitive world, there are several strategies to deal with the fast changing environment, among which New product development (NPD) is a common strategy. However, almost half of the resources that companies devote to NPD are spent on products that may fail. This issue is particularly highlighted in the pharmaceutical industry mainly because of a long development-time, low success rate, high capital requirement, and market uncertainty in. This study identifies critical success factors of NPD based on the relevant literatures and expert opinions in Iranian pharmaceutical industry, then prioritizes them using the methodology of multiple criteria decision making (MCDM) through analyzing 50 filled questionnaires which is structured based on the AHP (Analytical Hierarchy Process) approach. Although the NPD success factors seem same in both generic and bio-generic pharmaceutical industries, the underlying factors and related sub-factors show the different importance in these two industries. However, this study reveal that, the company capabilities is the most important factor affecting new product development success in both pharmaceutical generic and bio-generic industry. The results of this study contribute to create baseline information for pharmaceutical industry especially Iranian pharmaceutical companies to be more effective in budget allocation on improving NPD success factors so that they can boost the success rate of NPD more effectively.

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.

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.

Success Factors of Product Innovation: An Updated Meta‐Analysis

Assessing factors that predict new product success (NPS) holds critical importance for companies, as research shows that despite considerable new product investment, success rates are generally below 25%. Over the decades, meta‐analytical attempts have been made to summarize empirical findings on NPS factors. However, market environment changes such as increased global competition, as well as methodological advancements in meta‐analytical research, present a timely opportunity to augment their results. Hence, a key objective of this research is to provide an updated and extended meta‐analytic investigation of the factors affecting NPS.Using Henard and Szymanski's meta‐analysis as the most comprehensive recent summary of empirical findings, this study updates their findings by analyzing articles published from 1999 through 2011, the period following the original meta‐analysis. Based on 233 empirical studies (from 204 manuscripts) on NPS, with a total 2618 effect sizes, this study also takes advantage of more recent methodological developments by re‐calculating effects of the meta‐analysis employing a random effects model. The study's scope broadens by including overlooked but important additional variables, notably “country culture,” and discusses substantive differences between the updated meta‐analysis and its predecessor.Results reveal generally weaker effect sizes than those reported by Henard and Szymanski in 2001, and provide evolutionary evidence of decreased effects of common success factors over time. Moreover, culture emerges as an important moderating factor, weakening effect sizes for individualistic countries and strengthening effects for risk‐averse countries, highlighting the importance of further investigating culture's role in product innovation studies, and of tracking changes of success factors of product innovations. Finally, a sharp increase since 1999 in studies investigating product and process characteristics identifies a significant shift in research interest in new product development success factors.The finding that the importance of success factors generally declines over time calls for new theoretical approaches to better capture the nature of new product development (NPD) success factors. One might speculate that the potential to create competitive advantages through an understanding of NPD success factors is reduced as knowledge of these factors becomes more widespread among managers. Results also imply that managers attempting to improve success rates of NPDs need to consider national culture as this factor exhibits a strong moderating effect: Working in varied cultural contexts will result in differing antecedents of successful new product ventures.

A Framework for successful new product development

Purpose: The purpose of this paper is to propose a framework of critical success factors, metrics, and tools and techniques for implementing metrics for each stage of the new product development (NPD) process. Design/methodology/approach: To achieve this objective, a literature review was undertaken to investigate decades of studies on NPD success and how it can be achieved. These studies were scanned for common factors for firms that enjoyed success of new products on the market. Findings: The paper summarizes NPD success factors, suggests metrics that should be used to measure these factors, and proposes tools and techniques to make use of these metrics. This was done for each stage of the NPD process, and brought together in a framework that the authors propose should be followed for complex NPD projects. Research limitations/implications: Several different research directions could provide additional useful information both to firms finding critical success factors (CSF) and measuring product development success as well as to academics performing research in this area. The main research opportunity exists in implementing or testing the proposed framework. Practical implications: The framework can be followed by managers of complex NPD projects to ensure success. Originality/value: While many studies have been conducted on critical success factors for NPD, these studies tend to be fragmented and focus on one or a few phases of the NPD process. To the authors’ knowledge, this is the first time a framework that synthesizes these studies into a single framework.

New product development in Chinese SMEs

PurposeThe importance of innovation to the performance of firms has led to numerous studies conducted to identify the critical successful factors in new product development (NPD). However, most of these studies were conducted within the context of the developed economies or for large enterprises; relatively little is known about how firms, especially small and medium‐size enterprises (SMEs), develop new products in many of the emerging markets. This paper tries to bridge the gap by examining the key success factors of NPD in Chinese SMEs. Different from the traditional approach regarding the success factors in each stage of NPD as homogeneous, the key success factors in each stage of the NPD process are examined from a managerial perspective.Design/methodology/approachThe data used in this study were collected through a multi‐stage procedure including in‐depth field interviews and surveys. Two rounds of pretests were used to refine the measurements, and the 74 questionnaires retuned in the third round were used to analyze the key success factors for NPD through score ranking and principal component analysis.FindingsChinese SMEs do not regard financial return as the primary criterion in the idea‐generation stage. Although the key success factors are relatively quite different in various stages, technological, marketing, commercial, and managerial factors are important across all stages.Research limitations/implicationsThe samples were from Beijing Incubator Alliances, which might not be representative.Practical implicationsThe results will be interesting to both researchers and managers who want to know how the Chinese SMEs develop their new products.Originality/valueVery few studies were conducted on how the Chinese SMEs develop new products, and this research contributed to this important topic. Various success factors were examined for each stage of the NPD process from a managerial perspective, rather than viewing the success factors in each stage of NPD as homogeneous, as most previous research has suggested.

Success Factors of New Product Development: A Review of the Empirical Literature

The continuous development and market introduction of new products can be an important determinant of sustained company performance. For approximately 30 years, conceptual and empirical research has been undertaken to identify the critical success factors of new products. This paper reviews the findings of empirical work into the success factors of new product development (NPD). It is the prime objective of this work to summarize the most important findings in a compact and structured way. In addition, shortcomings of previous empirical work on NPD success factors will be discussed and suggestions for improvement in future empirical NPD studies will be made.

Managing new product development in the Chinese steel industry: an empirical investigation

This study explores several important aspects of the management of new product development (NPD) in the Chinese steel industry. Specifically, it explores NPD success factors, the importance of management functions to new product success and measures of new product success from the perspective of the industry's practitioners. Based on a sample of 190 industrial practitioners from 18 Chinese steel companies, the study provides a mixed picture as China makes the transition from a centrally-controlled to market-based economy. On one hand, respondents ranked understanding users' needs as the most important factor influencing the performance of the new products. Further, formulating new product strategy and strengthening market research are perceived as the most important managerial functions in NPD. However, technical performance measures are regarded as more important and are more widely used in industry than market-based or financial measures of success.

Factors affecting new product success: Cross-country comparisons

Although considerable effort has been devoted to identifying the factors that contribute to new product success and failure, plenty of work remains to be done in this area. For example, many studies of this subject focus on companies in specific parts of the world (in particular, North America, Europe, and Japan). It remains to be seen whether the findings from these studies apply to the new product development (NPD) efforts of companies in other regions, let alone on a global basis. Sanjay Mishra, Dongwook Kim, and Dae Hoon Lee address this issue in a study of the factors that contribute to the success or failure of NPD efforts in South Korean firms. To explore the question of whether a global set of success factors can be identified, they compare their findings with those of similar studies conducted in Canada and China. Classifying these countries in terms of stages of economic development (with China and Canada at opposite extremes and Korea in the middle), they expect to find the greatest dissimilarities in their comparisons of China and Canada. Marketing managers from 144 Korean firms provided in formation about 288 successful and unsuccessful products. Their responses indicate that the factors most closely related to new product outcomes in Korea are market intelligence, product-firm compatibility, the nature of the new product idea (for example, whether the product idea was market derived, whether the product specifications were clearly defined by the marketplace), launch effort, and general characteristics of the new product venture (such as the product's innovativeness to the market and its technical complexity). Several of these factors were emphasized in studies of Canadian and Chinese NPD success, though respondents to those studies also highlighted the importance of the product offering and proficiency of formal NPD activities. Contrary to expectations, China and Canada show the greatest similarity among the three countries studied, in terms of the relative importance of the various NPD success factors. On the other hand, China and Korea are more similar in terms of the effects of the variables studied. In other words, if a variable is related to new product failure in Korea, that variable is most likely also related to failure in China. Although some similarities are evident among all three countries, the findings in this study do not point toward a single, global formula for NPD success.

Factors Affecting New Product Success: Cross‐Country Comparisons

Although considerable effort has been devoted to identifying the factors that contribute to new product success and failure, plenty of work remains to be done in this area. For example, many studies of this subject focus on companies in specific parts of the world (in particular, North America, Europe, and Japan). It remains to be seen whether the findings from these studies apply to the new product development (NPD) efforts of companies in other regions, let alone on a global basis.Sanjay Mishra, Dongwook Kim, and Dae Hoon Lee address this issue in a study of the factors that contribute to the success or failure of NPD efforts in South Korean firms. To explore the question of whether a global set of success factors can be identified, they compare their findings with those of similar studies conducted in Canada and China. Classifying these countries in terms of stages of economic development (with China and Canada at opposite extremes and Korea in the middle), they expect to find the greatest dissimilarities in their comparisons of China and Canada.Marketing managers from 144 Korean firms provided in formation about 288 successful and unsuccessful products. Their responses indicate that the factors most closely related to new product outcomes in Korea are market intelligence, product‐firm compatibility, the nature of the new product idea (for example, whether the product idea was market derived, whether the product specifications were clearly defined by the marketplace), launch effort, and general characteristics of the new product venture (such as the product's innovativeness to the market and its technical complexity). Several of these factors were emphasized in studies of Canadian and Chinese NPD success, though respondents to those studies also highlighted the importance of the product offering and proficiency of formal NPD activities.Contrary to expectations, China and Canada show the greatest similarity among the three countries studied, in terms of the relative importance of the various NPD success factors. On the other hand, China and Korea are more similar in terms of the effects of the variables studied. In other words, if a variable is related to new product failure in Korea, that variable is most likely also related to failure in China. Although some similarities are evident among all three countries, the findings in this study do not point toward a single, global formula for NPD success.