New product development processes in small and medium-sized enterprises: Some Australian evidence (*).

This article examines the new product development process (NPDP) in Australian small and medium-sized enterprises (SMEs). Findings from a sample of 276 innovative Australian SMEs suggest that marketing-related activities were undertaken less frequently and were less well executed than technical activities in developing new products. However, marketing-related activities were important in distinguishing between successful and unsuccessful new products. In addition, resource and skill availability and new product planning were positively associated with the quality with which NPD activities are executed. Further the existence of a new product strategy seemed to have a significant positive impact on the quality of NPD activities.

The successful market introduction of new products or services is crucial to the survival and success of business enterprises. Small and medium-sized enterprises (SMEs) are no exception (Wynarczyk 1997). With increased competition and rapid changes in technology, customer requirements, and business practices, product life cycles have shortened (Wind and Mahajan 1997). This has imposed pressures on all organizations, including SMEs, to innovate more effectively and efficiently.

Research over the past two decades has provided valuable insights into the factors that influence new product performance, suggesting a number of variables that distinguish new product success from failure (see Craig and Hart 1992; Hart and Baker 1994; Montoya-Weiss and Calantone 1994). In a recent extensive study, Cooper and Kleinschmidt (1995) found that a firm's new product performance depends mainly on its processes, resources, and strategies, which are the "cornerstones of successful product development" (Cooper 1996, p. 655).

The present study focuses on the new product development process (NPDP) used in SMEs. The NPDP includes those activities and decisions that move a product from idea to launch (Cooper and Kleinschmidt 1986), and its effectiveness has a significant impact on new product performance (Cooper 1996). Specifically, this study investigaes the completeness and quality of the NPDP in SMEs and their impact on new product performance. Completeness and quality are important indicators of the NPDP's effectiveness and have been found to significantly influence ew product success (for example, Cooper 1979, 1988, 1996; Cooper and Kleinschmidt 1986, 1988, 1991, 1993b, 1995; Rochford and Rudelius 1997). In addition, the study examines the links among a firm's NPDP, its new product strategy, and its resources and skills. Although it has been suggested that the NPDP is influenced by an organization's new product strategy (Booz Allen and Hamilton 1982) and the availability of esources and skills (Rochford and Rudelius 1997), there is little empirical research into the impact of strategy or resources and skills on the quality and completeness of the NPDP, particularly in SMEs. The present study attempts to fill this gap.