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Critical factors for new product developments in SMEs virtual team

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  • Ale Ebrahim, Nader
  • Ahmed, Shamsuddin
  • Taha, Zahari

Abstract

Small and medium enterprises (SMEs) are considered as an engine for economic growth all over the world and especially for developing countries. During the past decade, new product development (NPD) has increasingly been recognized as a critical factor in ensuring the continued survival of SMEs. On the other hand, the rapid rate of market and technological changes has accelerated in the past decade, so this turbulent environment requires new methods and techniques to bring successful new products to the marketplace. Virtual team can be a solution to answer the requested demand. However, literature have shown no significant differences between traditional NPD and virtual NPD in general, whereas NPD in SME’s virtual team has not been systematically investigated in developing countries. This paper aims to bridge this gap by first reviewing the NPD and its relationship with virtuality and then identifies the critical factors of NPD in virtual teams. The statistical method was utilized to perform the required analysis of data from the survey. The results were achieved through factor analysis at the perspective of NPD in some Malaysian and Iranian manufacturing firms (N = 191). The 20 new product development factors were grouped into five higher level constructs. It gives valuable insight and guidelines, which hopefully will help managers of firms in developing countries to consider the main factors in NPD.

Suggested Citation

  • Ale Ebrahim, Nader & Ahmed, Shamsuddin & Taha, Zahari, 2010. "Critical factors for new product developments in SMEs virtual team," MPRA Paper 26936, University Library of Munich, Germany, revised 15 Jul 2010.
  • Handle: RePEc:pra:mprapa:26936
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    References listed on IDEAS

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    1. Gassmann, Oliver & Keupp, Marcus Matthias, 2007. "The competitive advantage of early and rapidly internationalising SMEs in the biotechnology industry: A knowledge-based view," Journal of World Business, Elsevier, vol. 42(3), pages 350-366, September.
    2. Ale Ebrahim, Nader & Ahmed, Shamsuddin & Taha, Zahari, 2008. "Virtual teams: A literature review," MPRA Paper 27001, University Library of Munich, Germany, revised Jan 2009.
    3. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    4. Tiwari, Rajnish & Buse, Stephan, 2007. "Barriers to innovation in SMEs: Can the internationalization of R&D mitigate their effects?," Working Papers 50, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    5. Nader Ale Ebrahim & Shamsuddin Ahmed & Zahari Taha, 2009. "Virtual R & D teams in small and medium enterprises: A literature review," Post-Print hal-00593358, HAL.
    6. V. Krishnan & Karl T. Ulrich, 2001. "Product Development Decisions: A Review of the Literature," Management Science, INFORMS, vol. 47(1), pages 1-21, January.
    7. Mezgar, Istvan & Kovacs, Gyorgy L. & Paganelli, Paolo, 2000. "Co-operative production planning for small- and medium-sized enterprises," International Journal of Production Economics, Elsevier, vol. 64(1-3), pages 37-48, March.
    8. Francesco Perrini & Angeloantonio Russo & Antonio Tencati, 2007. "CSR Strategies of SMEs and Large Firms. Evidence from Italy," Journal of Business Ethics, Springer, vol. 74(3), pages 285-300, September.
    9. Meghana Ayyagari & Thorsten Beck & Asli Demirguc-Kunt, 2007. "Small and Medium Enterprises Across the Globe," Small Business Economics, Springer, vol. 29(4), pages 415-434, December.
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    Cited by:

    1. Ale Ebrahim, Nader & Ahmed Shamsuddin & Abdul Rashid, Salwa Hanim & Taha, Zahari, 2012. "Effective Virtual Teams for New Product Development," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 1971-1985.
    2. Ale Ebrahim, Nader & Ahmed, Shamsuddin & Abdul Rashid, Salwa Hanim & Taha, Zahari, 2010. "Virtual Collaborative R&D Teams in Malaysia Manufacturing SMEs," MPRA Paper 29177, University Library of Munich, Germany, revised 20 Dec 2010.

    More about this item

    Keywords

    Survey findings; new product development; factor analysis; virtual team;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
    • P42 - Economic Systems - - Other Economic Systems - - - Productive Enterprises; Factor and Product Markets; Prices
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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