Identifying Key Risk Factors in Product Development Projects

Yu-Jing Chiu, Yi-Chung Hu, Chia-Yin Yao and Chia-Hung Yeh
Additional contact information
Yu-Jing Chiu: Department of Business Administration, Chung Yuan Christian University, Chung Li District, Taoyuan City 32023, Taiwan
Yi-Chung Hu: Department of Business Administration, Chung Yuan Christian University, Chung Li District, Taoyuan City 32023, Taiwan
Chia-Yin Yao: Department of Business Administration, Chung Yuan Christian University, Chung Li District, Taoyuan City 32023, Taiwan
Chia-Hung Yeh: Department of Industrial Engineering and Enterprise Information, Tunghai University, Taichung 407, Taiwan

Mathematics, 2022, vol. 10, issue 8, 1-20

Abstract: In a rapidly changing world, most operational processes of enterprises are conducted in the form of development projects. The development of new products is an important organizational strategy to meet consumer needs. During this process, enterprises often encounter many bottlenecks and risks that can cause delays in, and even the failure of, development projects. In this study, we developed a research framework based on relevant literature and expert interviews and then used the decision making trial and evaluation laboratory (DEMATEL) and the analytic network process (ANP) to determine the relationships among and the importance of risks in the development of new products. The results of a case study show that the six key risks of product development projects include project completion time, mastery of key technical capabilities, controlling the progress of the project, uniqueness and complexity of the project, ability to control the market, and functional integrity of the product. According to the results of importance performance analysis, six key factors were classified in the concentrate quadrant. The optoelectronic manufacturing industry should focus on reducing risks to the project. A cause-and-effect diagram shows that if an enterprise wants to improve performance in terms of these key factors, it should first improve the project completion time or the mastery of key technical capabilities. Therefore, it is appropriate to start by improving the project completion time. In this study, we developed a practical and simple decision support system that allows managers of research and development to examine the risk of projects and assess the relevant risks. A case study was also conducted to test the accuracy of the proposed risk-management method.

Keywords: new product development; research and development (R&D) risk; decision making trial and evaluation laboratory (DEMATEL); analytic network process (ANP); electronics industry; optoelectronics industry (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7390/10/8/1295/pdf (application/pdf)
https://www.mdpi.com/2227-7390/10/8/1295/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jmathe:v:10:y:2022:i:8:p:1295-:d:792947

Access Statistics for this article

Mathematics is currently edited by Ms. Emma He

More articles in Mathematics from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().