IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Product Development Decisions: A Review of the Literature

  • V. Krishnan


    (The University of Texas at Austin, CBA 4.202, Austin, Texas 78712)

  • Karl T. Ulrich


    (The Wharton School, 1317 Steinberg Hall-Dietrich Hall, Philadelphia, Pennsylvania 19104)

Registered author(s):

    This paper is a review of research in product development, which we define as the transformation of a market opportunity into a product available for sale. Our review is broad, encompassing work in the academic fields of marketing, operations management, and engineering design. The value of this breadth is in conveying the shape of the entire research landscape. We focus on product development projects within a single firm. We also devote our attention to the development of physical goods, although much of the work we describe applies to products of all kinds. We look inside the "black box" of product development at the fundamental decisions that are made by intention or default. In doing so, we adopt the perspective of product development as a deliberate business process involving hundreds of decisions, many of which can be usefully supported by knowledge and tools. We contrast this approach to prior reviews of the literature, which tend to examine the importance of environmental and contextual variables, such as market growth rate, the competitive environment, or the level of top-management support.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 47 (2001)
    Issue (Month): 1 (January)
    Pages: 1-21

    in new window

    Handle: RePEc:inm:ormnsc:v:47:y:2001:i:1:p:1-21
    Contact details of provider: Postal:
    7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA

    Phone: +1-443-757-3500
    Fax: 443-757-3515
    Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Kim B. Clark, 1989. "Project Scope and Project Performance: The Effect of Parts Strategy and Supplier Involvement on Product Development," Management Science, INFORMS, vol. 35(10), pages 1247-1263, October.
    2. Morris A. Cohen & Seungjin Whang, 1997. "Competing in Product and Service: A Product Life-Cycle Model," Management Science, INFORMS, vol. 43(4), pages 535-545, April.
    3. Shantanu Bhattacharya & V. Krishnan & Vijay Mahajan, 1998. "Managing New Product Definition in Highly Dynamic Environments," Management Science, INFORMS, vol. 44(11-Part-2), pages S50-S64, November.
    4. Ulrich, Karl, 1995. "The role of product architecture in the manufacturing firm," Research Policy, Elsevier, vol. 24(3), pages 419-440, May.
    5. K. Sridhar Moorthy & I. P. L. Png, 1992. "Market Segmentation, Cannibalization, and the Timing of Product Introductions," Management Science, INFORMS, vol. 38(3), pages 345-359, March.
    6. von Hippel, Eric, 1990. "Task partitioning: An innovation process variable," Research Policy, Elsevier, vol. 19(5), pages 407-418, October.
    7. Viswanathan Krishnan & Steven D. Eppinger & Daniel E. Whitney, 1997. "A Model-Based Framework to Overlap Product Development Activities," Management Science, INFORMS, vol. 43(4), pages 437-451, April.
    8. V. Krishnan & Saurabh Gupta, 2001. "Appropriateness and Impact of Platform-Based Product Development," Management Science, INFORMS, vol. 47(1), pages 52-68, January.
    9. Kirk Monteverde & David J. Teece, 1982. "Supplier Switching Costs and Vertical Integration in the Automobile Industry," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 206-213, Spring.
    10. Paul S. Adler & Avi Mandelbaum & Viên Nguyen & Elizabeth Schwerer, 1995. "From Project to Process Management: An Empirically-Based Framework for Analyzing Product Development Time," Management Science, INFORMS, vol. 41(3), pages 458-484, March.
    11. Sriraman Bhoovaraghavan & Ashok Vasudevan & Rajan Chandran, 1996. "Resolving the Process vs. Product Innovation Dilemma: A Consumer Choice Theoretic Approach," Management Science, INFORMS, vol. 42(2), pages 232-246, February.
    12. V. Krishnan & Rahul Singh & Devanath Tirupati, 1999. "A Model-Based Approach for Planning and Developing a Family of Technology-Based Products," Manufacturing & Service Operations Management, INFORMS, vol. 1(2), pages 132-156.
    13. Gregory Dobson & Shlomo Kalish, 1993. "Heuristics for Pricing and Positioning a Product-Line Using Conjoint and Cost Data," Management Science, INFORMS, vol. 39(2), pages 160-175, February.
    14. Christian Terwiesch & Christoph H. Loch, 1999. "Measuring the Effectiveness of Overlapping Development Activities," Management Science, INFORMS, vol. 45(4), pages 455-465, April.
    15. Kevin B. Hendricks & Vinod R. Singhal, 1997. "Delays in New Product Introductions and the Market Value of the Firm: The Consequences of Being Late to the Market," Management Science, INFORMS, vol. 43(4), pages 422-436, April.
    16. Gregory Dobson & Shlomo Kalish, 1988. "Positioning and Pricing a Product Line," Marketing Science, INFORMS, vol. 7(2), pages 107-125.
    17. Morelli, Mark Damian. & Eppinger, Steven D. & Gulati, Rosaline K. & International Center for Research on the Management of Technology., 1995. "Predicting technical communication in product development organizations," Working papers 3602-95, 1995. WP (Intern, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    18. Kelvin Lancaster, 1990. "The Economics of Product Variety: A Survey," Marketing Science, INFORMS, vol. 9(3), pages 189-206.
    19. Gary Burchill & Charles H. Fine, 1997. "Time Versus Market Orientation in Product Concept Development: Empirically-Based Theory Generation," Management Science, INFORMS, vol. 43(4), pages 465-478, April.
    20. John E. Ettlie, 1995. "Product-Process Development Integration in Manufacturing," Management Science, INFORMS, vol. 41(7), pages 1224-1237, July.
    21. Cusumano, Michael A. & Nobeoka, Kentaro, 1992. "Strategy, structure and performance in product development: Observations from the auto industry," Research Policy, Elsevier, vol. 21(3), pages 265-293, June.
    22. Albert Y. Ha & Evan L. Porteus, 1995. "Optimal Timing of Reviews in Concurrent Design for Manufacturability," Management Science, INFORMS, vol. 41(9), pages 1431-1447, September.
    23. Matthew J. Liberatore & Anthony C. Stylianou, 1995. "Expert Support Systems for New Product Development Decision Making: A Modeling Framework and Applications," Management Science, INFORMS, vol. 41(8), pages 1296-1316, August.
    24. Iansiti, Marco, 1995. "Technology integration: Managing technological evolution in a complex environment," Research Policy, Elsevier, vol. 24(4), pages 521-542, July.
    25. Terwiesch, Christian & E. Bohn, Roger, 2001. "Learning and process improvement during production ramp-up," International Journal of Production Economics, Elsevier, vol. 70(1), pages 1-19, March.
    26. Sunder Kekre & Kannan Srinivasan, 1990. "Broader Product Line: A Necessity to Achieve Success?," Management Science, INFORMS, vol. 36(10), pages 1216-1232, October.
    27. Mansfield, Edwin & Wagner, Samuel, 1975. "Organizational and Strategic Factors Associated with Probabilities of Success in Industrial R & D," The Journal of Business, University of Chicago Press, vol. 48(2), pages 179-98, April.
    28. de Groote, Xavier, 1994. "Flexibility and marketing/manufacturing coordination," International Journal of Production Economics, Elsevier, vol. 36(2), pages 153-167, September.
    29. Sanderson, Susan & Uzumeri, Mustafa, 1995. "Managing product families: The case of the Sony Walkman," Research Policy, Elsevier, vol. 24(5), pages 761-782, September.
    30. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-28, June.
    31. Stefan H. Thomke, 1998. "Managing Experimentation in the Design of New Products," Management Science, INFORMS, vol. 44(6), pages 743-762, June.
    32. Marc H. Meyer & Edward B. Roberts, 1986. "New Product Strategy in Small Technology-Based Firms: A Pilot Study," Management Science, INFORMS, vol. 32(7), pages 806-821, July.
    33. Karl Ulrich & David Sartorius & Scott Pearson & Mark Jakiela, 1993. "Including the Value of Time in Design-for-Manufacturing Decision Making," Management Science, INFORMS, vol. 39(4), pages 429-447, April.
    34. Christoph H. Loch & Christian Terwiesch, 1998. "Communication and Uncertainty in Concurrent Engineering," Management Science, INFORMS, vol. 44(8), pages 1032-1048, August.
    35. Karl T. Ulrich & David J. Ellison, 1999. "Holistic Customer Requirements and the Design-Select Decision," Management Science, INFORMS, vol. 45(5), pages 641-658, May.
    36. Marshall Fisher & Kamalini Ramdas & Karl Ulrich, 1999. "Component Sharing in the Management of Product Variety: A Study of Automotive Braking Systems," Management Science, INFORMS, vol. 45(3), pages 297-315, March.
    37. Mahajan, Vijay & Wind, Yoram, 1988. "New product forecasting models : Directions for research and implementation," International Journal of Forecasting, Elsevier, vol. 4(3), pages 341-358.
    38. Richard D. McBride & Fred S. Zufryden, 1988. "An Integer Programming Approach to the Optimal Product Line Selection Problem," Marketing Science, INFORMS, vol. 7(2), pages 126-140.
    39. Marc H. Meyer & Peter Tertzakian & James M. Utterback, 1997. "Metrics for Managing Research and Development in the Context of the Product Family," Management Science, INFORMS, vol. 43(1), pages 88-111, January.
    40. Karl T. Ulrich & Scott Pearson, 1998. "Assessing the Importance of Design Through Product Archaeology," Management Science, INFORMS, vol. 44(3), pages 352-369, March.
    41. Green, Paul E. & Krieger, Abba M., 1989. "Recent contributions to optimal product positioning and buyer segmentation," European Journal of Operational Research, Elsevier, vol. 41(2), pages 127-141, July.
    42. Jayashankar M. Swaminathan & Sridhar R. Tayur, 1998. "Managing Broader Product Lines through Delayed Differentiation Using Vanilla Boxes," Management Science, INFORMS, vol. 44(12-Part-2), pages S161-S172, December.
    43. Liker, Jeffrey K. & Kamath, Rajan R. & Nazli Wasti, S. & Nagamachi, Mitsuo, 1996. "Supplier involvement in automotive component design: are there really large US Japan differences?," Research Policy, Elsevier, vol. 25(1), pages 59-89, January.
    44. Clark, Kim B., 1985. "The interaction of design hierarchies and market concepts in technological evolution," Research Policy, Elsevier, vol. 14(5), pages 235-251, October.
    45. Shlomo Kalish & Gary L. Lilien, 1986. "A Market Entry Timing Model for New Technologies," Management Science, INFORMS, vol. 32(2), pages 194-205, February.
    46. Abbie Griffin & John R. Hauser, 1992. "Patterns of Communication Among Marketing, Engineering and Manufacturing---A Comparison Between Two New Product Teams," Management Science, INFORMS, vol. 38(3), pages 360-373, March.
    47. Robert P. Smith & Steven D. Eppinger, 1997. "Identifying Controlling Features of Engineering Design Iteration," Management Science, INFORMS, vol. 43(3), pages 276-293, March.
    48. Paul E. Green & Abba M. Krieger, 1985. "Models and Heuristics for Product Line Selection," Marketing Science, INFORMS, vol. 4(1), pages 1-19.
    49. Abdul Ali & Manohar U. Kalwani & Dan Kovenock, 1993. "Selecting Product Development Projects: Pioneering versus Incremental Innovation Strategies," Management Science, INFORMS, vol. 39(3), pages 255-274, March.
    50. Morris A. Cohen & Jehoshua Eliasberg & Teck-Hua Ho, 1996. "New Product Development: The Performance and Time-to-Market Tradeoff," Management Science, INFORMS, vol. 42(2), pages 173-186, February.
    51. Robert P. Smith & Steven D. Eppinger, 1997. "A Predictive Model of Sequential Iteration in Engineering Design," Management Science, INFORMS, vol. 43(8), pages 1104-1120, August.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:47:y:2001:i:1:p:1-21. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.