Determinants of the adoption of new product development tools by industrial firms

Abstract Despite the fact that failure rates of new products remain high, research shows low levels of penetration for tools and techniques to aid new product development (NPD). The objective of this study is to increase our understanding of the determinants of the adoption and diffusion of NPD tools and techniques. Empirical research was conducted in The Netherlands using a sample of 70 industrial companies. The results show a significant influence of innovation strategy, the number of interactions between departments involved in the NPD process, the number of departments involved in the NPD process, prior adoption of tools, and the number of NPD stages on tool adoption. The results and managerial implications are discussed.

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