Project Management Institute

New product development projects

the effects of organizational culture

Recent studies have found that new product development (NPD) projects consistently fail at alarmingly high rates. This article examines--via a survey of 95 United States manufacturing companies--how an organization's culture can influence its capability to implement NPD projects. In doing so, it discusses the results of recent NPD studies, noting the strategic characteristics that shape how organizations implement NPD projects; it overviews studies which have identified the key elements which shape an organization's culture. It also describes this study's methodology and the models--Kaiser-Meyer-Oikin, Bartlett, Scree-Plot--that the authors used to evaluate the survey results. It then outlines the three dimensions of project success that the authors used to structure their multivariate repression analysis of the survey results. It compares other previous studies that show how an organization's culture can affect how a project team--and the enterprise--performs.
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