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Abstract
Purpose - The objective of the research is to identify and analyse the main barriers to new product development within small manufacturing companies.
Design/methodology/approach - The study has employed a longitudinal case-study methodology, which has focused on data gathering from three manufacturing companies that have undertaken new product development activities in-house. The detailed case-study material has been derived from project documentation and interviews with personnel at various technical and managerial levels.
Findings - Three generic managerial issues that impinge on new product development are identified: the influence of a dominant owner/manager; a focus on time and cost ahead of other key factors; and a failure to understand the importance of product design.
Research limitations/implications - Although the case studies are detailed, only three manufacturing companies are assessed. Future research should expand on the generic issues, increase the number of case-study companies, and ideally include an assessment of new product development within small companies from outside of the UK.
Practical implications - In order to overcome some of the inevitable managerial limitations within small companies, new product development activities should seek to promote a more systematic approach to design. This may encompass formal design training for senior managers and the implementation of simple design tools, such as product design specifications.
Originality/value - Barriers to and opportunities for new product development within small manufacturing companies are neglected areas in terms of detailed research studies. The issues highlighted in this paper will help to inform managers, practitioners and policy makers who are engaged in enhancing the competitive advantage of "traditional" manufacturing companies.
Keywords Small enterprises, Product development, Management strategy, Manufacturing industries, United Kingdom
Paper type Research paper
Introduction
Small manufacturing companies within the UK operate in a harsh economic climate with increased low-cost competition from overseas. Government strategy advocates that manufacturing companies must move up the value-added chain in order to generate a clear competitive advantage. New product development represents one route for these companies to harness product innovation and apply their manufacturing knowledge in new directions. Studies have shown that successful new product development provides higher returns than practically any other type of similar investment (Berliner and Brimson, 1988). Therefore in-house design and development activities provide an attractive option for small companies to improve their...