Managing new product development processes: an innovative approach for SMEs

Abstract

Many companies are currently focusing on how to stay innovative, how to innovate and how to create an innovation climate in their companies. Why is innovation vital to companies? New Product Development (NPD) can be a key factor in this regard. Companies believe that NPD is their life blood; it can be the better way to survive firmly and be more competitive. In addition, the strategy of how to manage NPD process effectively and efficiently is becoming a powerful way of achieving a competitive edge. As Small and Medium Enterprises (SMEs) play a significant role in South African economic development, it is critical for companies especially (SMEs) to seek an ideal way to manage innovation productively. However, to be innovative is not easy for any organization and it should be managed effectively.

The effective management of innovation and NPD in SMEs is investigated in this study. Innovation and NPD has already become the key drivers of sustainability and competitiveness for many companies especially SMEs.

Innovation and NPD as the main subjects that are carefully studied, discussed and understood in larger corporations and multinational enterprises. It would appear that the same cannot always be said when it comes to SMEs.