A critical evaluation of the New Product Development experiences of Malta based manufacturers

Abstract

Purpose - To understand the process involved in creating a product, from the initial concept right down to its production and sale. Design/methodology/approach - In-depth interviews using open-ended questions with three CEO's and an R&D head were held to provide a deep understanding of the processes practiced. This format allowed the researcher to gain further knowledge on the subject. Four manufacturers - all based in the Island of Malta in the Mediterranean Sea - are considered and all the individuals interviewed are involved "hands-on" in the product development process. Each interview lasted between one and two hours. The sample is limited in size because, unfortunately, some companies where reluctant to divulge or discuss their development processes and projects. Also, some firms where unavailable during the research period chosen. Main Findings - The sample firms: a) Prefer to develop their own innovation process rather than look for external formulae, such as Stage-Gate, Ulrich or Portfolio Management and consciously decide to adopt them; b) Idea generation sessions are inexistent because none of the sample firms make a concrete effort to organise brainstorming sessions that specifically target new products; c) The respondents work hard to deliver process innovation but are reluctant to invest the same amount of energy and time to develop radically innovative products. Process innovation is given priority over product innovation; d) Most of the respondents do not really believe in creativity, that is, they fail to view creativity as an asset, as an investment that enhances the company's wealth generating abilities, and; e) The findings once again prove that innovation works backwards: first set a culture/ atmosphere that embraces innovation (with the company's CEO leading this) then expect radical ideas because innovation is one whole system: it's one closely knit system and the absence of any one of the prior three elements makes or breaks it. Originality/value - This is probably the first research project concretely documenting NPD practices in Malta. Internationally, the research might be valuable in providing an insight into how very small manufacturing firms develop their products. This research therefore provides a glimpse of product development and the fuzzy front end as applied in small manufacturing enterprises rather than the typical massive corporation many popular texts refer to, a sort of 'reality check' into the challenges faced by an SME trying hard to innovate for the international market. Interesting points into the ambiguous connection between design and innovation are also included. Recommendations for future research - On a methodological level, one can suggest direct observation and grounded theory either as an alternative or in conjunction to in depth interviews. On a research level, one can suggest: a) An international comparative study, starting off with an intra-island exercise; b) A more focused study - from day one - on the Fuzzy Front End; c) Specific research into the role of design in product development, particularly: time, inspiration and genuine innovation; d) Knowledge management of the processes used; and e) Goodman's CMR Model to unfold the 'Invisible' links present In Innovative organisations.