Managerial Factors Influencing Success of New Product Development

Abstract

New product development is considered as one of the survival strategies for organisations with high risk which is related to extreme failure rate that should not be neglected. Among internal and contextual factors which affect winning or losing in new product development (NPD), the role of top management team as key decision makers is critical. The objective of our research is to explore managerial factors influencing success in new product development. To find out these factors, relevant literature was reviewed and specific top managers were interviewed. Afterwards, a survey was administrated to elicit the opinions of managers involved in NPD in accordance to the degree of each factor's importance. This study examined six factors assumed to be critical in top management level to achieve success in NPD including commitment, regulatory focus, entrepreneurial orientation, social capital, international orientation and tendency of top managers to future study.

ORGANISATIONAL FACTORS, ANTICIPATED RENTS AND COMMERCIALISATION IN SMEs

“…This is consistent with Covin and Prescott's research (1990). However, innovation strategy was also found to have significant, if weaker, influences on length (β=0.10) and rate (β=0.08), reflecting the importance of having senior management -in this case the owner-manager -committed to the commercialisation process (Sedighadell and Kachquie, 2013;Stock and Schnarr, 2016). It also suggests owner-managers who have a strong commitment to innovation as a key part of their firm's strategy will be more optimistic about their anticipated rent across the three components.…”

“…The commitment by a firm's senior management to NPD and commercialisation is crucial (Sedighadell and Kachquie, 2013). Prior research has also suggested a link between strategy and financial performance (Crespell and Hansen, 2008).…”