Assessing new product development success factors in the Thai food industry

Abstract

Purpose – The aim of this paper is to measure new product development (NPD) success factors in the Thai food industry. Design/methodology/approach – The quantitative research was designed based upon previous qualitative analysis by Suwannaporn and Speece. A total of 114 questionnaires sent to medium and large food companies were returned (17.5 percent of companies). Findings – Managers' perceptions of the important success factors differ by job function, so that data about what is important cannot distinguish higher vs lower success rates. Manager perceptions of what factors are important do not match actual practice very closely, but they do report what is actually done in the NPD process consistently. Reported practices can distinguish success rates. Discriminant analysis shows that the use of marketing research is most critical in this industry. Internal communication in the NPD process and supplier linkages are also predictors of success rate, and strategy and planning plays a weak role. Practical implications – NPD is context-specific. The food industry is strongly market-driven, so rapid adaptation to customers is critical. Strategy and planning is less important than an ability to remain flexible and move quickly in response changing consumer tastes. Most local companies have strong business secrecy, which is likely to inhibit collaborative research and development (R&D). However, supplier linkages do contribute in distinguishing companies with higher vs lower success rates. Originality/value – This paper demonstrates that what managers involved in the NPD process believe to be the important success factors cannot always predict NP success rates.