Solutions for conflicts between variant product strategies and their performance evaluation

Abstract

Hsing Hung Chen and Amy H. I. Lee

Although lots of recent publications address customer management and supply chain management within production networks, critical success factors (CSFs) of new product development (NPD) still have no one solution. In addition, most firms also suffer from the inconsistency between strategic objectives (newly emerging strategies) and final performance (implementing the current strategy). In order to solve the aforementioned problems, the paper first discusses CSFs of NPD within production network, and then finds that CSFs are different between strategic objectives and performance indicators. Basically, the difference is larger in radical product strategies because their composite are more complicated and dynamic, but smaller in incremental product strategies. Accordingly, in order to solve the inconsistency for all product strategies, firms are suggested to adopt the model consisting of two sets of casual analysis to timely cascade strategic formation process with extracted CSFs, and then extracted CSFs with performance evaluation indices.