Drivers and barriers of new product development success: evidence from an emerging economy setting country-Turkey

Purpose: Context characteristics of emerging economies differ significantly from those in developed economies. Considering this substantial difference, this study aims to identify the drivers and barriers for new product development (NPD) success in the context of an emerging economy by drawing on the resource-based view. Design/methodology/approach: Data was collected from firms in different sectors in the Aegean Region of Turkey using the Wageningen Innovation Assessment Tool. Of 189 responses, 94 fit the criteria and used for statistical analysis. The data is analyzed using a two-step procedure, namely, a confirmatory factor analysis followed by a binary logistic regression that is used to model the probability in the study of the success of NPD. Findings: The results reveal that along with the context characteristics of an emerging economy setting, internal capabilities matter for NPD success. Based on interviews with NPD managers, it was found that, among other factors, the close relationship with local customers is key for new product success, while introducing high innovative products to the market of an emerging economy may not be appropriate due to the specific conditions of such economies. Practical implications: This study will be useful to the managers to understand the extent to which the degree of newness of a product affects NPD success in an emerging economy setting. It also highlights the importance of securing firm resources before starting an innovation activity in this setting where resources such as financial resources, knowledge and physical resources are limited. From a policy perspective, this study provides certain insights as well. That is, government officials in emerging economies should be very careful about their informal actions that might disrupt the investment and innovation environment. Originality/value: Emerging economies are important for large firms seeking growth. They initiate manufacturing activities and increasingly perform innovation activities in those countries. However, the conditions to innovate are different from those in developed economies. Research into the factors that drive innovation is largely in an embryonic state. This study offers NPD researchers a deeper understanding of the drivers and barriers to innovation, particularly internal ones that may affect the NPD success in an emerging economy setting, in this case, that of Turkey. The results provide suggestions for policymakers to consider during the development of new innovation policies. For practitioners, this study outlines novel combinations of internal factors that lead to NPD success.