Small Firm Success Factors for New Product Development: Separating the Best from the Rest
Independent thesis Advanced level (degree of Master (One Year)), 20 credits / 30 HE creditsStudent thesis
This thesis examines the process of new product development for small firms, aiming to specify what separate top performers from the rest. Every year, thousands of new products are introduced to the market. Yet, 75 % to 90 % of all products launched suffer from failure. Prevailing theory is founded on examinations on large firms, which differ significantly from small firms in terms of financial and human capital. This gives reason to suspect that prevailing theory fail to serve the specific needs of a small firm. In this study, previous research is summarized in a theoretical framework. A set of survey questions was sent out to 2,287 managers in Swedish small manufacturing firms. A research model was developed to help analyze and interpret the 156 complete responses. 32 significant variables separating top performers from the rest were acknowledged and three factor areas were specified in a framework for small firm new product success. The findings of our study indicate that prevailing theory fail to serve small firms. We conclude that small firms benefit from focusing to simplify rather than adding to refine, and that this is strongly correlated to the limited financial and human resources of a small firm.
Place, publisher, year, edition, pages
NPD, New product development, launch, innovation, small firms, key success factors, top performers, manufacturing, new product success
IdentifiersURN: urn:nbn:se:su:diva-112982OAI: oai:DiVA.org:su-112982DiVA: diva2:782266
Haftor, Darek, Proffessor