Organizational Determinants of New Product Success: The Case of Habesha Breweries
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Date
2024-09
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Addis Ababa University
Abstract
This thesis investigates the organizational determinants of new product success, focusing on Habesha Breweries, a key player in Ethiopia's competitive brewing industry. The study examines how new product development (NPD) strategies, senior management commitment, development culture/climate, and market environment factors collectively influence the success of new product launches. Employing a quantitative research approach, the research integrates quantitative data from company records and from industry professionals. The findings highlight that a well-defined NPD strategy, supported by robust senior management commitment and a conducive organizational culture, significantly enhances the success of new products in the market. The study emphasizes the necessity of adapting NPD practices to local market conditions, suggesting that tailored strategies which consider Ethiopia's unique cultural and economic landscape are essential for sustained product success. Key results indicate that Habesha Breweries' comprehensive NPD strategy effectively identifies customer needs and market trends, fostering innovation and rapid product development. The commitment of senior management plays a crucial role in providing the necessary resources and strategic direction, while a supportive development culture encourages creativity, cross-functional collaboration, and continuous improvement. Market environment factors, such as economic conditions and consumer preferences, also significantly impact new product success. This research contributes to academic discussions on strategic management and product innovation, offering practical insights for Habesha Breweries and similar organizations in emerging markets. It underscores the importance of an integrated approach to NPD, combining strategic planning, organizational support, and market alignment to optimize product portfolios and enhance competitiveness.
Keywords: New Product Development, Organizational Culture, Senior Management Commitment, Market Environment Factors, Product Innovation Success