Performance measurement in new product development projects: findings from successful small and medium enterprises

New product development projects enhance the competitiveness of small and medium enterprises but carry a high risk of failure. Monitoring the progress of these projects' activities, using specific performance indicators, helps to reduce this risk. However, studies in small and medium enterprises are limited and they do not identify appropriate and useful indicators to help controlling the resources allocation. By mobilizing the literature on project management and innovation, we studied the processes adopted in five small and medium enterprises that have experienced success in new product development to identify the activities as well as the indicators used to make decisions about continuing or stopping the project. The results show that the activities and indicators are adapted to the context of each enterprise, such as the availability of certain resources and expertise and the proximity of the customers, and that taking these indicators into account ensures better management of new product development projects and reduces failure rates.