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Studies dealing with environmental issues in New Product Development have made significant progress explaining how firms can develop greener new products that succeed in the market and Environmental New Product Development (ENPD) has become a wide-spread practice within an increasing number of firms. Nevertheless, green entrepreneurs and product developers who have tried to develop more sustainable products have had mixed experiences. Through an empirical study in the human powered vehicle sector, this research study examines the challenges product developers teams and green entrepreneurs face in their attempts to incorporate environmental issues into NPD. The purpose of this exploratory research study is a better understanding of the implications of environmental issues in new product development. In particular, this thesis examines the relationship between environmental ambition and the innovation process. From the descriptions and analyses of two cases study this research study suggests that a high level of environmental ambition increases the complexity of the product innovation process. Moreover, a high level of environmental ambition may hamper a product innovation process because it may lead the developers away from the market that their product is to serve. Accordingly, this research study attempts to explain and predict how environmental ambition influences new product development processes. This claim provides a theoretical contribution to existing NPD and ENPD research.
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