A Multi-Stage Data Envelopment Analysis Framework to Assess New Product Development Proficiency and Performance

This paper proposes a framework for benchmarking the new product development process of individual companies. The company’s market environment and the internal capabilities (resources) it allocates in order to maximise the effectiveness of new product development are factors affecting the multi-stage process of new product development. The ultimate success is measured by means of product performance, which includes aspects of product positioning, market power, and profitability. This paper proposes a multi-stage optimisation framework based on data envelopment analysis through which new product development (NPD) benchmarking measures are gauged at various stages of its development. The empirical part of the research draws on qualitative information obtained from the product managers of 110 manufacturing companies in Greece.