Abstract:
This is descriptive study designed to investigate the variations of risk management
behavior within small scale businesses vis-a-vis large scale businesses in New Product
Development. Determining the risk-identification, risk-evaluation, and risk strategies among
and across small- and large- scale businesses were the objectives of this study.
Respondents were chosen through purposive sampling given a specific criteria and key informant
interviews were conducted personally to obtain qualitative data. Subsequently raw
data results and findings were subjected to categorical, and thematic analysis to establish
patterns and divergences in risk management behavior. Results showed a number of
perceived risks with many commonalities amongst and across small- and large-scale
enterprises under the Food and Beverage Category. Companies A, B, and C (small-scale
businesses) identify risk through inventory checks, and research on competitors and target
markets. They evaluate risks through product testing, different processes of attaining
customer feedback, and financial and sales assessments. Companies X, Y, and Z (large-
scale businesses) identify risks by conducting formal approaches in competitive analysis
and market research, and gathers additional information regarding supply, timetable of
development, and financial aspects in NPD. They evaluate risks by conducting sensory
evaluations (some quantitative, some qualitative) and calculating the food cost of the new
product. Prevalent risk strategies employed by both small- and large-scale companies are
Reduction, and Limitation. It can be concluded that small-scale and large-scale enterprises
under the Food and Beverage category have more similarities than differences in terms of
risk management behavior. Similarities in risk-identifying, risk-evaluating, as well as, risk
strategies prove to be dominant while the differences lie in the specific techniques and
processes used in identifying, and evaluating risks.
