Assessing new product development practices and performance: Establishing crucial norms

TLDR

Cross‑sectional studies from 1968 and 1982 established widely cited norms for new product development, but recent changes in practice and environment have prompted a need to reassess them. The study aims to report the current status of new product development and update the commonly cited norms. It is a cross‑sectional study sponsored by PDMA. The study finds that while structure and process practices have improved, these gains have not translated into significant overall performance improvements for the participating firms.

Abstract

In 1968 and 1982 cross-sectional studies of the conduct and performance of new product development were reported, the wide-ranging results of which have been widely reproduced and cited as norms for product development. Since the more recent study, many changes in the practice and environment of product development have occurred. Albert Page describes the findings of a new cross-sectional study, sponsored by PDMA, which reports on the current status of new product development and updates those commonly referred to norms. On the one hand, this article reports that the state of practice, covering both structure and process, has improved, although there is still substantial room for further improvement. On the other hand, the results for five different measures of firm and program performance indicate these practice improvements have not resulted in notable improvements in the overall performance of the new product development activity within the responding companies.