Abstract

To remain competitive, successful without going out of the market and to improve business performance, in Cameroon, it is important for manufacturing organisations and VIMA to adopt new product development and a continuous innovation. New product development is the creation of new product or the modification of old products in to the market. As firms work hard to improve and increase the level of their business performance, they are to use a model that incorporates many factors that are found to positively influence the new product development (NPD) process and business performance and many other parameters which negatively affects the application of new product development and business performance. Based on data, findings have observed that new products have a strong significant on business performance and also the success of new products depends on many factors such as culture, strategy, personnel’s and others. More the study shows that new products and industries fail in Cameroon as a result of inadequate research and high taxes impost on infant firms.

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

The Cameroon society expects that the manufacturing industries should continuously improve on their business performance. To do this, all industries strive to operate and compete in an expanding and dynamic environment, and new product development and innovation is a vital source of competitive advantage. As said by Taylor (1994) the highly competitive environment and the varying customers’ needs have forced organizations to search for and apply new product development process and innovation that could improve their product unique characteristics, quality and profitability. Organizations adopt its own standards and different approach to design new product development and innovation on its size, type, number of product and services that it produces. Although new product development and innovation faces problems and challenges, it still stands as a source of increasing the organizations profitability and performance

 

1.2 Problem statement

The volume of an organizations profits and performance depends on the success of its new product creation and innovation of its new and old product. Organizations see their new products as a source of increasing level profits from the introductory stage to growth stage to maturity stage then decline so as profits are acquired. Hardly has any organization gone successful and profitable without the creation of new product and innovation. Thus investigating New Product Development and its impact on organizations performance.

 

1.3 Research questions

The main question is associated with the impact of new product development and on an organization’s performance/ profitability.

This study also is to investigate the following;

 

1. How Does New Product Development Increases The Profitability/ Performance Of An Organization
2. What Are The Reasons Why New Products Fail In An Organization In Cameroon?

 

1.4 Objectives of the study

The main objective of the study is to investigate the impact of new product development on an organization’s performance.

And also investigating the reasons why new product development fails in an organization in Cameroon. More it is to know the way and means which new products increase an organisations profit and performance

In summary, the study examines the need for establishing a new product development and investigating whether the processes is profitable to an organization.

 

1.5 Hypothesis of the study

Ho: New products development and innovation does not have any significant effect on business performance

Hi: New products development and innovation has a significant effect on business performance

 

1.6 Scope of the study

This study was limited to analyzing new product development and innovation and its impact on business profitability/performance.

 

1.7 Significant of the study

This study is significant to the researcher in that it helps in advancement of knowledge and also on organization to know the benefits of new product development and innovation.

It also enables the organization to know why their product fails and for them to readjust on the development process.

More to that it helps organizations see the process of new product development clearly.

And it will help students and other researchers who will want to carry out research on new product development and innovation