The application of new product development tools in industry

Abstract

<P>LITERATURE SUGGESTS THAT NEW PRODUCT DEVELOPMENT (NPD) IS CRITICAL FOR INDUSTRIAL FIRMS TO GAIN COMPETITIVE ADVANTAGE. IT HAS BEEN REPORTED THAT THE APPLICATION OF NPD TOOLS WILL IMPROVE THE NPD PERFORMANCE. BY USING A SAMPLE OF 67 INDUSTRIAL FIRMS IN SINGAPORE AND 54 INDUSTRIAL FIRMS IN CHINA, THIS EMPIRICAL STUDY INVESTIGATES THE TWO ASPECTS OF THE APPLICATION OF NPD TOOLS: DIFFUSION AND ADOPTION, ESPECIALLY THE FREQUENCY AND THOROUGHNESS OF ADOPTION. IT ALSO PROBES THE FACTORS WHICH MAY AFFECT THE APPLICATION OF NPD TOOLS IN INDUSTRY. </P><P>OUR FINDINGS SHOW THAT THE APPLICATION OF NPD TOOLS IS STILL UNDER-EXPLOITED IN MOST OF THE INDUSTRIAL COMPANIES IN SINGAPORE AND CHINA. ALTHOUGH THE APPLICATION OF NPD TOOLS IS AFFECTED BY MANY FACTORS, THE MOST SIGNIFICANT ONES ARE MANAGEMENT SUPPORT AND PRODUCT/ PROJECT INNOVATIVENESS. BOTH OF THEM POSITIVELY IMPACT TOOLS APPLICATION. IN ADDITION, THE PREVIOUS FINDINGS IN LITERATURE BASED ON WESTERN COUNTRIES COULD NOT BE FULLY APPLIED IN