The Conceptual model to investigate an improved effect of risk management on PD project

In most situations, Product development (PD) being accompanied with firm growth can be concentrated as sustainable competitive advantage, but risks are inherent in Product development project in all industries. Therefore understanding, identifying, managing, and reducing risk is of strategic importance for firms. Also firms require a strategy not simply of risk avoidance but risk management to successfully introduce new products to markets. Without proper risk assessment and risk management, projects can easily run out of control, consume significant additional resources, greatly inflate project costs and may lead to failure. In this paper, we offer a conceptual model included a three-dimensional risk management framework for Product development and also present a framework for risk management tools in PD project. The results show that risk management strategies targeted at specific risk factors, i.e., technological, organizational, and marketing, contribute both individually and interactively in affecting the project of Product development. Appropriate risk management strategies can significantly improve the odds of Product development success. Also the framework for risk management tools presented in this paper provides an integrated approach to risk management in projects that can be used for development of risk management tools that suit specific domain but are generic in structure.

Keywords:

Product development (PD) project , Risk management , Technological risk , Organizational risk , Marketing risk