The dimensions of industrial new product success and failure in state enterprises in the People's Republic of China

Michael Song and Mark Parry examine the dimensions of new product success and failure in state enterprises in the People's Republic of China by conducting a principal components analysis of 77 statements developed by Cooper that describe possible characteristics of a new product. Their analysis yielded 16 significant components. Next, stepwise discriminant analysis determined which dimensions were significantly correlated with project success and failure. Six dimensions emerged as significant correlates of success in the initial discriminant analysis and in 30 split-half replications. These six dimensions concerned the product selection criteria of market potential, competitive intensity, relative product advantage, and fit with the technical and production capabilities of the enterprise. The findings have implications for enterprise managers, state authorities, and foreign partners in Chinese joint ventures.

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