Full citation

Mosey, S. (2005). Understanding New-to-Market Product Development in SMEs. International Journal of Operations & Production Management, 25(2), 114-130.

Format: Peer-reviewed article

Type: Research — Non-experimental

Experience level of reader: Fundamental

Annotation: Five studies of SME's explored how with their limited resources and capabilities, they could sustain innovative NPD processes to satisfy the unmet needs of new customers using their current technologies. Cross-functional teams were key to establishing information flows with customers and suppliers alike.

Setting(s) to which the reported activities/findings are relevant: 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


  • NPD may be characterized as representing incremental changes to existing products, or radical changes. The radical changes are called New to Market products, which then contain three levels depending on the novelty of the technology: Type 1 — Same technology as currently used by the firm; Type 2 — New technology to the Firm but not to the World; Type 3 — New technology to the World. The Type has implications for the company's ability to accomplish the project. Type 2 offers SME's a middle ground where technologies that are not new to the world or even superior to other technologies, but that meet the needs of a neglected consumer group, but transferred in from other fields of application.
    Case studies of five firms.
    Occurrence of finding within the model: Step 2.1, Step 1.3
  • The firm involved in NPD should consider its ability to conduct the necessary work from three perspectives: 1) Paths — the future options still open given the constraints introduced by previous choices such as mergers and or acquisitions of resources; 2) Positions — the assets of the organization in terms of ownership, technology, industrial systems, finance, organizational structure, market position and organizational boundaries. 3) Processes — management and organizational mechanisms which enable co-ordination and integration, learning and reconfiguration.
    Case studies of five firms.
    Occurrence of finding within the model: Step 4.3, Step 2.1, Step 1.3, Step 4.13

Secondary Findings

Tip: New to Market products can be defined as offering unprecedented functionality, or a five to ten-fold performance improvement when compared to existing products within the marketplace. (Collarelli & O'Connor, 1998)
Occurrence of finding within the model: Step 2.1, Step 1.3