New Product Development Cycle Time: The Influence of Project and Process Factors in Small Manufacturing Companies

Abstract Rapidly changing technologies and changing customer requirements are producing shorter product life cycles, which in turn compel organizations to shorten product development cycle times. Several researchers have considered environmental influences on cycle times. This article extends their work by examining the influence of outcome-based performance assessment and nontechnical outside assistance on new product development cycle time. Literatures relating to product development cycle times are reviewed, and a model identifying the factors influencing cycle time is presented and tested. Results from a study of 188 new product development projects indicate that use of nontechnical outside assistance lengthens product development cycle time, whereas output control can shorten or lengthen product development cycle time dependent upon the market's growth rate and product's innovativeness.