Abstract

Small and medium enterprises (SMEs) are considered as an engine for economic growth all over the world and especially for developing countries. During the past decade, new product development (NPD) has increasingly been recognized as a critical factor in ensuring the continued survival of SMEs. On the other hand, the rapid rate of market and technological changes has accelerated in the past decade, so this turbulent environment requires new methods and techniques to bring successful new products to the marketplace. Virtual team can be a solution to answer the requested demand. However, literature have shown no significant differences between traditional NPD and virtual NPD in general, whereas NPD in SME's virtual team has not been systematically investigated in developing countries. This paper aims to bridge this gap by first reviewing the NPD and its relationship with virtuality and then identifies the critical factors of NPD in virtual teams. The statistical method was utilized to perform the required analysis of data from the survey. The results were achieved through factor analysis at the perspective of NPD in some Malaysian and Iranian manufacturing firms (N = 191). The 20 new product development factors were grouped into five higher level constructs. It gives valuable insight and guidelines, which hopefully will help managers of firms in developing countries to consider the main factors in NPD.

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Bibliographic Info

Paper provided by HAL in its series Post-Print with number hal-00593363.

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Date of creation: 2010
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Publication status: Published, African Journal of Business Management, 2010, 4, 11, 2247-2257
Handle: RePEc:hal:journl:hal-00593363Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00593363/en/
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Related research

Keywords: Survey findings new product development factor analysis virtual team medium-sized enterprises knowledge management perspective innovation internet network questionnaires communication information integration; Other versions of this item:
Find related papers by JEL classification:

• O1 - Economic Development, Technological Change, and Growth - - Economic Development
• M11 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Production Management
• M1 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration
• O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
• L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
• P42 - Economic Systems - - Other Economic Systems - - - Productive Enterprises; Factor and Product Markets; Prices
• O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights

References

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1. Nader Ale Ebrahim & Shamsuddin Ahmed & Zahari Taha, 2009. "Virtual R & D teams in small and medium enterprises: A literature review," Post-Print hal-00593358, HAL.
   
   • Ale Ebrahim, Nader & Ahmed, Shamsuddin & Taha, Zahari, 2009. "Virtual R & D teams in small and medium enterprises: A literature review," MPRA Paper 27045, University Library of Munich, Germany, revised Oct 2009.
2. V. Krishnan & Karl T. Ulrich, 2001. "Product Development Decisions: A Review of the Literature," Management Science, INFORMS, vol. 47(1), pages 1-21, January.
3. Nader Ale Ebrahim & Shamsuddin Ahmed & Zahari Taha, 2009. "Virtual Teams: a Literature Review," Post-Print hal-00593357, HAL.
   
   • Ale Ebrahim, Nader & Ahmed, Shamsuddin & Taha, Zahari, 2008. "Virtual teams: A literature review," MPRA Paper 27001, University Library of Munich, Germany, revised Jan 2009.
4. Gassmann, Oliver & Keupp, Marcus Matthias, 2007. "The competitive advantage of early and rapidly internationalising SMEs in the biotechnology industry: A knowledge-based view," Journal of World Business, Elsevier, vol. 42(3), pages 350-366, September.
5. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer, vol. 16(3), pages 297-334, September.
6. Mezgar, Istvan & Kovacs, Gyorgy L. & Paganelli, Paolo, 2000. "Co-operative production planning for small- and medium-sized enterprises," International Journal of Production Economics, Elsevier, vol. 64(1-3), pages 37-48, March.
7. Tiwari, Rajnish & Buse, Stephan, 2007. "Barriers to innovation in SMEs: Can the internationalization of R&D mitigate their effects?," Working Papers 50, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
8. Meghana Ayyagari & Thorsten Beck & Asli Demirguc-Kunt, 2007. "Small and Medium Enterprises Across the Globe," Small Business Economics, Springer, vol. 29(4), pages 415-434, December.

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Cited by:

1. Ale Ebrahim, Nader & Ahmed, Shamsuddin & Abdul Rashid, Salwa Hanim & Taha, Zahari, 2010. "Virtual Collaborative R&D Teams in Malaysia Manufacturing SMEs," MPRA Paper 29177, University Library of Munich, Germany, revised 20 Dec 2010.
2. Ale Ebrahim, Nader & Ahmed, Shamsuddin & Abdul Rashid, Salwa Hanim & Taha, Zahari, 2010. "Effective virtual teams for new product development," MPRA Paper 39510, University Library of Munich, Germany, revised 29 Mar 2012.
   
   • Ale Ebrahim, Nader & Ahmed Shamsuddin & Abdul Rashid, Salwa Hanim & Taha, Zahari, 2012. "Effective Virtual Teams for New Product Development," EconStor Open Access Articles, ZBW - German National Library of Economics.
   • Nader Ale Ebrahim & Shamsuddin Ahmed & Salwa Hanim Abdul Rashid & Zahari Taha, 2012. "Effective Virtual Teams for New Product Development," Post-Print hal-00709109, HAL.

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Critical Factors for New Product Developments in SMEs Virtual Team