Determining Risks On New Product Development (NPD)Performance In Small Medium Enterprise (SME)
Small medium companies (SMEs) are still play pivotal role in any countries’ economic growth. The ability to innovate and develop new product will ensure their survival in competitive market. Companiesneed to make prompt decision making on producing new product to compete in demanding market. One of the major aspects in developing new product is by looking at risks. Risk can either gives positive or negative effects towards product development process. It is crucial for companies to manage risks in order to achieve desired new product development (NPD) performance without compromising with quality. This study therefore is to find determinants of risks in SMEs which could affect NPD performance. It is found that three main types of risk may affect NPD performance which are technological, organizational and marketing risks. Future empirical research is expected to be carried out to test the conceptual framework.
Keywords- risk, new product development, SMEs