Abstract:
This study sought to establish the success of new product development in manufacturing sector
in Kenya. The study was motivated by the continuous challenge affecting the sector in the wake
of increased technology, shorter product life cycle and increased consumer demands with
statistics indicating that 32% -40% of new product development do not take off. This was
particularly true for Kenya whose manufacturing sector significantly affects the country’s gross
domestic product. New product innovations are critical in increasing firm’s competitiveness and
market share within the business environment. The objectives of the study was to examine the
effects of strategic organizational orientation, marketing orientation as well as new product
development process orientation on the success of new product. The study focused on
manufacturing firms dealing with first moving consumer goods. Descriptive research design was
used to accomplish the research objectives. The target population for the study was 103
manufacturing firms selected from fast moving consumer goods industry within Nairobi County.
The study sample consisted of 309 respondents selected purposively from sales, marketing and
production departments for all firms in the target population. A semi structured questionnaire was
used to collect data from the respondents. Content analysis was used to examine the validity of
the research instruments while Cronbach’s alpha technique was used to test reliability. A multiple
regression model was used to test the relationship between the study variables. Data was
presented in tables and charts and interpretations made based on the research objectives. The
study findings indicate that, leadership, financing, human capital and technology were strategic
organizational orientation aspects shaping success of NPD. Promotions, marketing budgets, and
adoption of market leader strategy affected success of NPD. Product Launch timelines, involving
all departments and capitalization on first mover advantage NPD process affected success of
NPD. A statistically significant and strong positive effect was found between new product
development process and success of new products. The study recommended emphasis on
organizational leadership, revenue allocation and promotions, setting up of new product
development timelines and involvement of all departments, as suitable actions to be taken for
successful NPD.