1 Department of Marketing and Statistics, Aarhus School of Business, Aarhus BSS, Aarhus University2 Department of Economics and Business Economics, Aarhus BSS, Aarhus University3 Department of Economics and Business Economics, Aarhus BSS, Aarhus University
The go/no-go decision-making for new product ideas in the new product development process is central for the resource allocation to and the cost of new product development in companies. Information on how go/no-go decision-making of NPD takes place is helpful for companies for planning and controlling the decision-making in the NPD process thereby reducing the risk of new products failing on the market. Research finds that the structure of the new product development process and a high interaction between organizational units when developing new products enhance the likelihood of success on the market. Therefore the paper investigates the influence of a stage-gate structure and cross-functional teamwork on the go/no-go decision-making within the phases of the development process for different market conditions. Data is collected with an Internet survey questionnaire from 43 large companies on high and low technology market producing consumer products. Results reveal that the survival of product ideas within the NPD process is significant different for companies in high and low technology markets, but that the stage-gate structure of the new product development process is of less importance for the go/no-go decision-making. Furthermore, cross-functional teams handled the go/no-go decision-making as well as the R&D department alone.