Full citation

Hise, R.T., O'Neal, L. Parasuraman, A., & McNeal, J.U. (1990). Marketing/ R&D Interaction in New Product Development: Implications for New Product Success Rates. Journal of Product Innovation Management, 7(2), 142-155.

Format: Peer-reviewed article

Type: Research — Non-experimental

Experience level of reader: Fundamental

Annotation: This study analyzed the new product development processes used by 252 large manufacturing companies. The primary aim was to explore the relevant efforts provided by marketing and R&D staff to determine ideal levels of involvement and time frames for their involvement in new product development projects.

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: Brokers, Manufacturers

Knowledge user level addressed by the literature: Organization

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

Primary Findings

Tips:

  • Efforts should focus on the design aspects of the new product development process, since such highly statistically significant findings were consistently found between new product success levels and the amount of joint effort existing between marketing and R&D in determining the final design of new products.
    Survey of 252 large manufacturers
  • They key to improving new product success levels from manipulation of the process for developing new products seems to lie with additional nitty-gritty aspects of actually shaping the product physically, rather than with the up-front aspects of collecting and using input from the market or the end-of-the process evaluation of the product.
    Survey of 252 large manufacturers
  • These data imply that there is apparently some threshold level of involvement required for marketing in the procedure, but to increase marketing's contributions beyond that point may have only minimum impact on the success levels of new offerings and may not justify the additional commitment of resources.
    Survey of 252 manufacturers
  • Efforts to integrate marketing and R&D need to be selective rather than global and R&D's contributions to the success of new products cannot be ignored as these integration strategies are instituted and implemented.
  • This studys results suggest that having marketing exert high levels of involvement in the product development process is more likely to result in higher levels of commercial success for new consumer products than for new industrial products.
    Survey of 252 large manufacturers
  • Firms indicating a high level of joint effort between R&D and marketing have introduced new product considered to have "higher success" levels, compared with companies where a low level of joint marketing/R&D effort occurred.
    Survey of 252 large manufacturers
  • When marketing and R&D demonstrate high levels of joint effort in determining the final design of new products, new consumer and industrial products are each more likely to have higher levels of success than when low levels of cooperation occur.
    Survey of 252 large manufacturers