A Clustering Approach for Assessing the Antecedents to New Product Development Process Outcomes

Vol. 1 No. 4

Year : 2007

Issue : Mar-May

Title : A Clustering Approach for Assessing the Antecedents to New Product Development Process Outcomes 

Author Name : Roger J. Calantone, Anthony Di Benedetto 

Synopsis : 

This exploratory study examines the interrelationships between the stages of the new product development (NPD) process and key factors that affect NPD process metrics, Factors affecting NPD process metrics as identified in the literature include external and internal integration, and levels of complexity and specialization.  We include three commonly used process metrics: quality, profitability, and speed to market.  We use a cluster analysis approach to find linkages between the key antecedent factors, the relative amount of time spent on each stage in the NPD process, and success.  We use data from 1115 products collected from seven large multinationals.  We find two clusters of products that exhibit high success rates: high-complexity, high-specialization, high-integration projects in which the stages of product design prototype development, and launch are emphasized, and low-complexity, low-specialization, low-integration projects in which the stages of idea screening, feasibility testing, marketing planning, and trial testing were emphasized.  We draw implications for management on how improvements in screening and/or in the Product Innovation Charter might minimize the number of products that fall in the less successful cluster. We conclude with a discussion of the findings, implications for management, and directions for future research.