This research is based on empirical investigations into commercial industrial projects in a small developing economy (Bahrain). Commercial industrial projects are defined as those industrial projects which have commercial profitability as their main objective. The investigation covers how these projects were set up (i.e. appraisal techniques used), which elements have a strong impact on their performance, and which of these elements differentiate between successful and unsuccessful projects. It also examines which elements (controllable or environmental) have been perceived to have stronger impact on new product outcome, and which of these elements are perceived to differentiate between new product success and failure. The literature review showed that numerous attempts have been made, over the past few decades, to develop project appraisal techniques in developing countries where resources are identified as being scarce. Such techniques have been mainly undertaken in the field of economic development with objectives of a socioeconomic nature. Objectives of a commercial nature are not taken into consideration as a main criterion for deciding whether or not to go ahead with the project.