Evaluation Criteria of New Product Development Process

New product development (NPD) is one of the most importance processes for firms to increase their profit and competitiveness. This study presents the results of a comparison study between Taiwan and Indonesia in the employment of evaluation criteria for NPD process. This study is guided by a stage-gate process to derive a structured NPD performance evaluation framework. In this study we use 20 evaluation criteria that are grouped into five dimensions, market-, financial-, product-, process-, and intuition-based measures. Based on a sample of 148 industrial firms, the findings of the study reveal that evaluation criteria under market-based dimensions are more stressed during the later phases of NPD gates. Financial-based criteria are appearing importantly during the business-analysis gate and product-based criteria are strongly higher than other evaluation dimensions in the product-testing gate. The results of the experiments present useful guidelines for R&D managers as measuring product development and employ appropriate evaluation dimensions for effectiveness and efficiency in NPD related decision making.