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

Abstract

Background: Organizations are composed of a collection of significant processes, each adding value to it differently. The unique, yet complex, new product development (NPD) process represents one of the firms’ most significant operations that subject high weightage onto its profitability margins and market reputation. Used as a means of competitive advantage, it carries the enormous risk of failure: a hazard that organizations must inevitably face and manage to succeed and grow. Objectives: The object of the research to identify critical success factor of new product development. The second objective is to see identified factors reflects in real cases. Methods/Approach: The paper uses literature as a basis for identifying critical success factors for new product development and data collected from senior managerial level executives in Dubai using semi structure interviews in UAE. The analysis of semi structured interview coupled with literature is presented in the research/paper. Results: To avoid the former, businesses must ensure the availability of NPD’s critical success factors (CSFs), which target its top management, venture team, process strategy, potential market, process requirements, and organizational culture. To pinpoint a set of the most influential CSFs, a total of 12 factors for the NPD process are highlighted, based on their reoccurrence patterns in the literature and semi-structured interview. Further, their impact levels on the process are expressed through a presentation from highest to lowest recurrent factor. Each CSF’s role in driving the NPD process to success has also been justified using real-time evidence, depicted throughout a total of 4 case studies from different industries. Conclusions: Success Mantra for organizations to launch new products frequently to remain competitive by retaining market share and profitability. Most of the mobile handset makers are doing that they launch a new product every other month. Therefore, it NPD’s a vital role in business success and performance and understanding the CSFs of NPD is very vital.