An Institutional Analysis of the New Product Development Process of Small and Medium Enterprises (Smes) in China, Hong Kong and Taiwan

This exploratory, comparative study considerssimilarities and differences of new product development (NPD) strategies ofChinese small and medium enterprises (SMEs) in China, Hong Kong, and Taiwan.Specifically, it seeks to assess the interplay of government intervention,manufacturing systems, and business approaches, and their influence on the NPDpractices in the Chinese socio-cultural context when compared to Westernpractices. An institutional analysis of the NPD practices of each economy is offeredand a conceptual framework about the specific NPD process in a Chinese contextis delineated. The study uses data from in-depth personal interviews withexecutives of 43 Chinese, 26 Hong Kong, and 28 Taiwanese SMEs. A grounded theory approach is used to analyze the interview scripts. Thefindings suggest that, although SMEs in China, Taiwan, and Hong Kong areembedded in Chinese culture, the interplay between government intervention,manufacturing systems, and business approaches is significant to thedifferences noted in NPD practices. Moreover, the analytical framework proposedin this study assesses the NPD practices of Chinese SMEs in response toenvironmental changes. (CBS)