Factors Affecting The Success Of New Product Development In The Manufacturing Sector In Kenya

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.