The influence of time-to-market and target costing in the new product development success

By Afonso, P.; Nunes, M.; Paisana, A.; Braga, A.

International Journal of Production Economics

2008

Abstract

This article uses recent research in new product development and target costing in order to test the relationship between the use of new product development firm practice and the product’s development time and cost. Data were obtained from Portuguese manufacturing firms through a survey. In this study it was found that target costing and reduction of time-to-market together provide considerable advantages to users of these practices. Such companies can achieve reductions in new product development cycle time and cost without compromising quality and functionality. This paper offers a contribution to current literature by adding empirical evidence on the role of target costing in the process of new product development.

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