Corporate & Business Strategy Review / Volume 4, Issue 2, 2023 76 NEW PRODUCT DEVELOPMENT: EVIDENCE FROM A BANKING SECTOR Egzona Hasani * , Besim Beqaj ** * Faculty of Economics, University of Prishtina “Hasan Prishtina”, Prishtina, the Republic of Kosovo ** Corresponding author, Faculty of Economics, University of Prishtina “Hasan Prishtina”, Prishtina, the Republic of Kosovo Contact details: Faculty of Economics, University of Prishtina “Hasan Prishtina”, George Bush Street, No. 31, 10000 Prishtina, the Republic of Kosovo Abstract How to cite this paper: Hasani, E., & Beqaj, B. (2023). New product development: Evidence from a banking sector. Corporate & Business Strategy Review, 4(2), 76–82. https://doi.org/10.22495/cbsrv4i2art7 Copyright © 2023 The Authors This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0). https://creativecommons.org/licenses/by/ 4.0/ ISSN Online: 2708-4965 ISSN Print: 2708-9924 Received: 16.10.2022 Accepted: 27.03.2023 JEL Classification: M30, M31, M39 DOI: 10.22495/cbsrv4i2art7 New products and their development are of vital importance to all organizations, in particular, it is of great importance to banks, whose existence depends heavily on the new products they launch on the market. This paper analyzes the development of new products in the most profitable sector of the Kosovar economy — the banking sector. This paper is based on the research of Hasani and Beqaj (2021) and Harz et al. (2022). Therefore, theoretical and empirical evidence enable the elaboration of this topic more easily and better. The statistical methods that were used to derive the results of 37 respondents (bank workers) and 387 respondents (bank clients) are Kaiser– Meyer–Olkin (KMO) and Bartlett’s tests, correlations, and multiple linear regression. The relevance of this research lies in the fact that it has addressed a very current topic that made Kosovar banks very competitive in a dynamic market. The main recommendation of this paper is that Kosovar commercial banks should create an interstructural communication plan that consists of obtaining updated and accurate information about customer preferences. Keywords: New Product Development, Business, Marketing, Banking Sector, Kosovo Authors’ individual contribution: Conceptualization — E.H.; Methodology — E.H. and B.B.; Investigation — E.H. and B.B.; Resources — E.H. and B.B.; Writing — E.H. and B.B.; Supervision — E.H. and B.B. Declaration of conflicting interests: The Authors declare that there is no conflict of interest. 1. INTRODUCTION New products and services strengthen enterprises, as well as raise their business reputation. The development of new products is not an easy and high-risk process, it also has various benefits, such as expanding the market, improving the sales of existing products, maintaining the clientele, etc. This is particularly important for the banking sector, which in the countries of the Western Balkans has a great contribution to their economic growth (Goldsmith, 2012; Quain, 2019; Jusufi et al., 2020; Dwivedi et al., 2021). In particular, in the case of Kosovo, the banking sector has had an enormous impact on the recovery of this country after 1999 and then on the financing of hundreds of projects, the creation of basic economic conditions, the improvement of the business environment, etc. (Jusufi et al., 2022; Leka et al., 2022). According to Joore (2010), new products should not be “new and improved”, but “new to improve” the society in which they operate. New products are essential to the success of the modern company. It is even believed that firms in the near future will depend more on new products. Therefore, a large number of enterprises plan to develop new products with the aim of increasing their sales volume in the business they conduct. Companies from the countries of the Western Balkans produce products that, in most cases, do not meet the quality criteria of the European Union (EU) countries (Qorraj & Jusufi, 2021; Osmani et al., 2022). Due to numerous economic problems, these countries are not managing to recover their manufacturing base (Ajdarpašić & Qorraj, 2019; Krasniqi et al., 2022; Krasniqi & Jusufi, 2022; Qorraj et al., 2022). Therefore, unlike other products, the products of the banking sector are in step with