The purpose of this research paper is to present a modified framework for the waves of change of new product development of McGrath.
A qualitative study of new product development (NPD) in four electronic firms (two small indigenous/two large multinational) was conducted. In‐depth interviews were held with employees, including the founding entrepreneur in each of the small firms.
Analysis of strategic, organisational and development factors shows that firms face different challenges during their NPD process – some related to size. Also, as firms grow, NPD learning may be lost.
The research findings are stated as a result of four cases studies – two in large firms and two in small firms. Further research will establish the generalisability of these findings.
The electronics industry is renowned for its aggressive competitive environment where successful entrepreneurs continuously innovate product and process development. The framework presented will be of use to entrepreneurs who focus on NPD.
A modified version of McGrath's framework, showing separate categories for small and large firms, is presented. These modifications recognise that there are differences between NPD in small and NPD in large firms.
