PurposeIn recent years, scholars have devoted increasing attention to the use of methods in new product development. Although their positive impact on product success has been confirmed by a series of studies, little research has so far been conducted into the determinants of the successful method application. The purpose of this paper is to analyze two key determinants for the successful use of methods.Design/methodology/approachThe paper adopts a structural equation modeling approach and analyzes the subject based on a large empirical sample of 410 product development projects.FindingsThe way the new product development process is formalized and the extent of top management support have a significant influence on the successful application of methods. Both factors lead to the use of more methods overall and drive the more thorough and intensive deployment of the specific methods used.Practical implicationsThe paper shows how firms that are seeking a more methodical approach to new product development can consciously create the right determinants for the successful adoption of methods and by doing that can increase the success rate of their new product development activities.Originality/valueThis research adds to the literature on success factors of new product development in two distinct ways. First, the paper investigates the subject at the level of specific product development projects, based on a large empirical sample and using a structural equation modeling approach, for the first time. Second, the methods investigated were chosen in a systematic, multi step process in which the methods used by several functions involved in new product development were taken into account.

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Leklaral: Ute Wrasmann 1 Annegrel Eckerl www.gabler.de www.duv.de Dos Werk einschlieBiich aller seiner Teile isi urheberrechllich geschiitzt. Jede Verwertung auBerhalb der engen Grenzen des Urheberrechlsgesetzes isi ahne Zustimmung des Verlages unzulassig und slrafbar. Dos gill insbesan• dere fur Vervielfalligungen, Ubersetzungen, Mikraverfilmungen und die Ein• speicherung und Verarbeitung in eleklranischen Systemen.

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In recent years, scholars have devoted increasing attention to the use of methods in new product development. For the first time, we examine particularly the relationship between method application, cross-functional collaboration in new product development and new product success. The analysis of more than 400 new product development projects from 201 different companies shows that applying methods in new product development leads directly to the superior financial performance of the developed product (by reducing product costs, for example) and also leads indirectly to superior cross-functional collaboration during the development project. Both effects are analysed, showing how firms can actively improve on what in some cases are very high failure rates in the development of new products.