Full citation

Pilar, C., Escudero, A.I.R., & Aleman, J.L.M. (2004). Technology Newness and Impact of Go/No-Go Criteria on New Product Success. Marketing Letters, 15(2-3), 81-97.

Format: Peer-reviewed article

Type: Research — Non-experimental

Experience level of reader: Advanced

Annotation: The purpose of this research was to identify relationships between important G0-No/go criteria, which determines whether a product development project will continue on at certain decision gates, and new product success. Five criteria was investigated, technical, strategic, customer acceptance, financial, and market-related. Findings showed that the importance of various go-no/go criteria is different at every stage of the development process.

Setting(s) to which the reported activities/findings are relevant: Large business, Small business (less than 500 employees)

Knowledge user(s) to whom the piece of literature may be relevant: Manufacturers, Researchers

Knowledge user level addressed by the literature: Organization

This article uses the Commercial Devices and Services version of the NtK Model

Primary Findings

Tips:

  • Market opportunity criteria relate positively with project success at the initial screening, the market launch gate, and the post-launch review.
    Survey. The relative importance of market opportunity correlates positively with the new product success at the initial screening(εGate1 = 0.40, p < 0.01), go-to-market decision (εGate3 = 0.23, p < 0.05), and post launch review (εGate4 = 0.18,p < 0.10).
    Occurrence of finding within the model: Gate 1, Gate 7, Gate 8
  • Results show that placing importance on customer acceptance criteria correlates positively with project success at every stage of the process.
    Survey. Customer acceptance dimension is positively associated with new product success at each and every of the review points (γGate1 = 0.26, p < 0.05; γGate2 = 0.30, p < 0.05; γGate3 = 0.24,p < 0.05; γGate4 = 0.26,p < 0.05).
    Occurrence of finding within the model: Gate 1, Gate 2, Gate 3, Gate 4, Gate 5, Gate 6, Gate 7, Gate 8
  • Emphasizing financial criteria have a positive impact on new product success from the go-to-development gate to the first post-launch review; yet it is shown that the relative effect of financial criteria on new product success is significantly bigger in the latter evaluations.
    Survey. Importance given to financial dimension is positively associated with new product success at the go-to-development decision (δGate2 = 0.18, p < 0.10), go-to-market decision (δGate3 = 0.30, p < 0.05) and post-launch review (δGate4 = 0.42, p < 0.01).
    Occurrence of finding within the model: Gate 4, Gate 8, Gate 5, Gate 6, Gate 7
  • Technical criteria are significantly correlated with product success at the go-to-development decision gate.
    Survey. Technical dimension is positively correlated with new product success at the go-to-development decision (αGate2 = 0.40,p < 0.01)
    Occurrence of finding within the model: Gate 3, Gate 4
  • Strategic fit dimension stands out as a vital determinant of success in approving the new product idea.
    Survey. Strategic fit dimension is positively associated with new product success at the initial screening (βGate1 = 0.33, p < 0.01).
    Occurrence of finding within the model: Gate 1

Secondary Findings

Tip: Studies by Ronkainen (1985), Pinto and Slevin (1988) and Kumar et al. (1996) revealed that technology availability (i.e., whether the technology is available and developed to the necessary level of technical sophistication) and technical capability (i.e., whether the firm has adequate technology, facilities, personnel, and troubleshooting mechanisms to support the project) were important for success during the feasibility and development stages. (Ronkainen [1985])
Occurrence of finding within the model: Tip 2.3