PATTERN OF INNOVATION PROCESSES IN NEW PRODUCT DEVELOPMENT: CASE STUDIES ON SME IN INDONESIA

Abstract

Product innovation is the key to success in small and medium enterprises. Despite that the process of new product development (NPD) in food manufacturing in small and medium scale has not often been studied. This study aims to identify NPD innovation process in food and beverages manufacturing industry in Indonesia. The research methodology used is multiple case study on NPD in 4 small and medium scale food and beverage manufacturer with international target market in Indonesia. Study result indicate that for industry in this scale, NPD innovation process went through several stages, which are: idea formation, idea screening, concept development and evaluation, development and marketing strategy, business analysis, market testing and commercialization. Results from this study can serve as reference for companies with similar scale in innovating and developing new products for the society