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Creation of a model that identifies and rates the factors that influence NPD success within SME’s without using hard data.

Kok, R.W.A. (2016) Creation of a model that identifies and rates the factors that influence NPD success within SME’s without using hard data.

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Abstract:The aim of this research was to find out whether it is possible to create a framework to value the factors that influence the success of new product development within small and medium enterprises without using hard data. Due to increased competition, changing markets, shortening life cycles firms and the increasing pressure from shareholders, firms are forced to increase profits and to create sustainable competitive advantages. To create a sustainable competitive advantage and meanwhile increase their profits firms should be innovative. An important factor in being innovative is the creation of new products. To assess the strength of new product development within firm’s scholars have created best practice models that enable firms to compare their practice with the best practice. This enables managers to gain an insight into their current new product development (NPD) performance and gives direction for eventual improvement. One of the shortcoming of the existing models is that they are not suitable for small and medium enterprises (SME’s) who for instance often lack the resources that large firms do have. To fill this gap, we created a model to value NPD within SME’s. Based on a meta analyses we took the factors that are ought to be related to the success of new products and translated them into a 3-level scale. Together all these factors including their 3-level scale form our final model. Eventually we tested our model within 4 firms by conducting interviews, internal and external firm valuation based on our model, and the evaluation of our model by firm representatives. By conducting an analysis over the previously indicated testing methods we found that our model might be considered valid as a tool to value NPD within firms albeit that some factors and the measurement method will need some future adjustment. Specifically, our model still contains some factors that might be unachievable due to the possible absence of required resources and clearly defined departments within SME’s. Furthermore, the factor product advantage might not be suitable for firms who produce products on demand of their customers. Additionally, we found that products who are radically new for a market, the usage of customer input might be of less importance. To create more accurate scores per factor the model might be adjusted to use statements per factor instead of pre-defined levels.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/71545
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