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Why Some New Products Are More Successful than Others
Abstract
Product innovation is increasingly valued as a key component of the sustainable success of a business's operations. As a result, there has been a noticeable increase in the number of studies directed at explicating the drivers of new product success. To help managers and researchers synthesize this growing body of evidence, the authors conduct a meta-analysis of the new product performance literature. Of the 24 predictors of new product performance investigated, product advantage, market potential, meeting customer needs, predevelopment task proficiencies, and dedicated resources, on average, have the most significant impact on new product performance. The authors also find that the predictor-performance relationships can vary by measurement factor (e.g., the use of multi-item scales, subjective versus objective measures of performance, senior versus project management reporting, time elapsed since product introduction) or contextual factor (e.g., services versus goods, Asian versus North American markets, competition in high-technology versus low-technology markets). They discuss the implications of these findings and offer directions for further research.
... Marketing innovation refers to adopting new marketing strategies and advanced technological solutions to differentiate products and increase customer engagement. Marketing innovation has enhanced competitive advantage by enabling companies to adapt to ever-changing consumer needs and market dynamics (Chandy & Tellis, 2000;Henard & Szymanski, 2001). The focus on Vision 2030 and digital transformation in Saudi Arabia has created fertile ground for companies to leverage innovative marketing techniques, making this construct particularly important. ...
... Marketing innovation (MI) includes adopting advanced marketing strategies and innovative technological solutions to differentiate products and enhance customer engagement (Chandy & Tellis, 2000;Henard & Szymanski, 2001). By enhancing the ability to adapt to dynamic market demands, marketing innovation directly contributes to the success of new product launches in the market while at the same time enhancing the company's responsiveness to market changes. ...
... Studies investigating the relationship between MR and NPL emphasise the importance of adaptive strategies (Srinivasan et al., 2009). Companies that realign on-going product launches with immediate market feedback can achieve better sales performance (Henard and Szymanski, 2001). A strong MR helps determine launch timing, enhancing product acceptance and reducing failure rates. ...
... One factor that may clarify these relationships is the role of new product performance. New product performance, defined as the success of newly introduced products in terms of market acceptance, sales, and contribution to the firm's objectives, is often seen as a key intermediary between innovation and organizational outcomes (Kumar et al., 2024;Henard & Szymanski, 2001;Molina-Castillo & Munuera-Aleman, 2009). However, the extent to which new product performance mediates the relationship between service innovation and various performance metrics in the banking sector has not been thoroughly explored, particularly in the context of developing economies like Ghana. ...
... Empirical studies consistently demonstrate a positive relationship between new product performance and financial outcomes across various industries. For example, Henard and Szymanski (2001) conducted a meta-analysis revealing that successful new products correlate with higher profitability and market share, underscoring the importance of products that effectively meet customer needs and Licensed Under Creative Commons Attribution (CC BY-NC) outperform competitors. Similarly, Sorescu and Spanjol (2008) emphasized that successful new products contribute to immediate sales increases and long-term financial stability by building brand equity and fostering customer loyalty. ...
... The statistically significant findings from the study reinforce the importance of strategic investment in service innovation to achieve financial goals. This supports the broader literature that links innovation with enhanced financial performance, emphasizing that companies need to prioritize service innovation as part of their strategic initiatives to drive financial growth (Henard & Szymanski, 2001). Furthermore, the relationship between service innovation and nonfinancial performance appears to be weak and negative. ...
This study examines the mediating role of new product performance in the relationship between service innovation and both financial and non-financial performance in selected banks in Ghana using the dynamic capability theory as the theoretical lens. The study employed a descriptive research design to frame the study’s methodology. The target population consisted of 159 commercial and community banks in Ghana. Utilizing a quantitative research approach, a structured questionnaire was used to gather data from 113 sampled respondents through purposive sampling, Structural Equation Modeling (SEM) was employed to analyze the data and assess the proposed relationships. The results reveal that service innovation has a direct and positive impact on the financial performance of banks, with a b coefficient of 0.316, affirming its importance in enhancing profitability and market share. However, the relationship between service innovation and non-financial performance was negative. Despite this, new product performance emerged as a significant mediator, strengthening the positive impact of service innovation on financial performance, with a b coefficient of 0.245 and a t-statistic of 2.409. The mediation effect of new product performance on the relationship between service innovation and non-financial performance was also validated, indicating that while service innovation alone may negatively affect non-financial outcomes, introducing successful new products can mitigate this impact. These findings contribute to the understanding of how service innovation influences different aspects of organizational performance in the banking sector. The study offers practical insights for bank managers, emphasizing the need to focus on new product development to maximize service innovation's benefits.
... This can result in the current workforce becoming fearful because it threats their current knowledge and skills. Henard and Szymanski (2001) pointed out that the costs of introducing new products to the market could result in high initial costs of which some may not have even been anticipated by the company. Henard and Szymanski (2001) further highlighted that the decision of a company to diversify its products is itself a risk. ...
... Henard and Szymanski (2001) pointed out that the costs of introducing new products to the market could result in high initial costs of which some may not have even been anticipated by the company. Henard and Szymanski (2001) further highlighted that the decision of a company to diversify its products is itself a risk. If the change process is handled and managed incorrectly then the entire company could be impacted. ...
The purpose of this paper was to conduct a strategic plan of a Coffee Company in Durban, South Africa. The strategic plan strategies for growth were determined using the the SAFe criteria. The strategic plan included the McKinsey 7S model, the type of change being proposed and advise on sustainable strategy. The strategic opportunity identified for the Coffee Company was to diversify its products. In this regard, the recommendations to the Coffee Company focussed on product innovation. The recommendations were based on the 4R strategy of product diversification.
... Additionally, NRE policies parallel product innovation strategies, helping enterprises seize a first-mover advantage in the marketplace, shape consumer decision-making processes, and influence the strategic choices of competitors. Effective communication of policy goals and technological advancements serves as a vital instrument for value chain communication, fostering a more competitive market environment [54]. ...
... They play a pivotal role in strategic energy planning and decision-making processes, significantly impacting both domestic and international entities. By addressing intrinsic disparities in energy system infrastructure, NRE policies contribute to transitioning towards more sustainable and resilient energy systems, thereby bolstering energy security and enhancing a nation's global leadership in sustainable energy development [53,54]. ...
This study analyzes the impact of global geopolitical changes on new/renewable energy (NRE) policies and their roles in enhancing national energy security, elevating international stature, and influencing the global energy market. Using game theory, it reveals how NRE policies promote technological innovation, diversify energy supply, and strengthen international collaboration, thus advancing the global energy system towards a low-carbon transition and improving international energy governance. NRE policies significantly enhance national energy security by reducing dependency on single energy sources, facilitate the global shift to low-carbon energy, and intensify international cooperation. The effectiveness of these policies in driving energy transformation is notable, and they are expected to remain crucial for global energy security and sustainable transition. Recommendations include strengthening the stability and security of energy supply chains through enhanced oversight, increasing investment in R&D and innovation to reduce costs, fostering international cooperation for better policy coordination, and implementing diversified energy policies to encourage the adoption of NRE. These measures will address challenges from global geopolitical dynamics and drive the global energy system towards sustainability and efficiency.
... Produktinnovationen sind ein zentrales Element des technischen Fortschritts in einer Volkswirtschaft und fördern damit das Wirtschaftswachstum. Sie beeinflussen die Marktanteile auf Gütermärkten und gelten vor allem auf gesättigten Märkten zunehmend als Schlüssel zum Erfolg und zu einer nachhaltigen Unternehmenspolitik. Das Ausmaß und der Erfolg von Innovationsaktivitäten wie auch die Bestimmungsgründe für Innovationen und Innovationserfolg erfreuen sich deshalb seit vielen Jahren eines großen Forschungsinteresses sowohl in der empirischen Industrieökonomik (KAMIEN und SCHWARTZ, 1982;COHEN und LEVIN, 1989) als auch in der Betriebswirtschaftslehre (HENARD und SZYMANSKI, 2001;JOHNE und SNELSON, 1988;CORDERO, 1990). ...
... Neben der eigentlichen Erfolgsmessung wird auch in der betrieblichen Innovationsforschung versucht, die Bestimmungsfaktoren des Innovationserfolgs herauszuarbeiten (JOHNE und SNELSON, 1988;CORDERO, 1990;HENARD und SZYMANSKI, 2001 Um die unterschiedlichen beobachteten Marktgleichgewichte in Relation zueinander zu erklären, sind die Determinanten zu erfassen, die erklären können, warum die Nachfrage nach bzw. das Angebot an den einzelnen neuen Produkten unterschiedlich hoch ist. ...
A high degree of product proliferation is characteristic for many markets of processed foods, as is an increasing competition due to globalization and a further liberalization of agricultural markets. It seems increasingly important to secure market shares and sectoral income on unregulated food markets, e.g. by the successful introduction of new food products. It is the objective of this article to elaborate for a market with a high degree of product differentiation, i.e. the German yoghurt market, which determinants may affect the success of product innovations. To examine this question, scanner data are utilized. The success of innovations is measured by the revenue reached within a year after the introduction of a new product in a specified number of stores. As all selected products remained on the shelves for at least 12 months after their introduction, we compare product innovations with a minimum degree of market success among each other. Multiple regression analyses reveal that the variation of revenues across 41 new products can be explained by more than 90 % with ingredients and other attributes of the products, with the type of the marketing channel, with characteristics of the innovations and dummy variables for the names of the manufacturing firms. Interestingly, it is not so much the price premium of an innovation that matters as it is often stressed in hedonic analyses. According to our success criterion, it is more important to realize a sizeable share of the market in order to create a particularly successful new product.
... Measuring the current and prior use of open innovation activities allows us to evaluate changes in use over time and represents a unique feature of the study. We measured perceived business performance across three aspects in accordance with the recommendations of Cheng and Huizingh (2014) and others Page 1993, 1996;Henard and Szymanski 2001;Im and Workman 2004). The three performance aspects measured were innovation performance, market growth performance, and financial performance. ...
... For example, a review of research on organizational processes (Brown & Eisenhardt, 1995) concludes that cross-functional communication improves project development outcomes (e.g., speed, productivity). However, Henard and Szymanski (2001), in a review of over 40 empirical studies, find that cross-functional integration has little impact on the next step of market or firm performance outcomes (e.g., market share, profit margin). Apparently, the advantage of superior project development outcomes can be readily offset by inferior commercialization, a theme we develop in Sect. ...
Markets are created by firms, who make decisions about the innovation process and the marketing of innovations. New Institutional Economics, particularly Transaction Cost Economics, is well placed to explain the decisions firms make in highly uncertain and risky businesses, where most innovations fail. Decision-makers’ capacity to follow a conscious economic logic to the fullest is considerably strained by factors such as bounded rationality, information impactedness, and the tacit nature of knowledge. Therefore, opportunities for self-interest seeking with guile abound (e.g., by suppliers or business partners), and contracts are insufficient to protect firm-specific assets. We present the issues arising in the process of generating innovations and then adopt the demand perspective to introduce the problems managers face in creating new markets. We show that the creation of new markets by firms, both when developing and commercializing innovation, is best understood through the lens of New Institutional Economics.
... Ensuring acceptance of these discontinuous innovations is a challenge, as purchase intentions for these products are often lower than for incremental innovations (Alexander et al., 2008). The main failures are linked to a lack of customer focus and a mismatch between the product and consumer expectations (Henard and Szymanski, 2001). ...
Purpose
Our research aims to understand adolescents’ perceptions of alternative food such as insects in Western countries. Objectives are to identify (1) a “green gap” between their favorable attitudes toward adopting a sustainable diet and their real-life behaviors, (2) the perceived benefits and costs of adopting sustainable habits and (3) how the potential green gap can be reduced by the psychological factors grouped under the acronym SHIFT proposed by White et al. (2019): Social influence, Habit formation, Individual self, Feelings and cognition and Tangibility.
Design/methodology/approach
We conducted in-depth semi-structured interviews with 31 French teenagers (12–18 years old). Manual thematic content analysis was compared with two types of lexicometric analysis (IRaMuTeQ and LIWC).
Findings
The conflict between adolescents’ personal desires and environmental goals reflects a green gap. The analysis of the benefits and costs expressed by adolescents shows the relevance of the levers of the SHIFT framework to encourage behavior change. In particular, the social dimension is valued for entomophagy.
Research limitations/implications
This research explores the acceptance of one type of alternative protein (insect-based foods) by French teenagers.
Practical implications
The SHIFT framework highlights the most effective psychological drivers in adolescents for businesses and governments to encourage the adolescent consumption of alternative proteins.
Social implications
This research helps to demonstrate the role of marketing in encouraging sustainable eating habits. It is fully in line with the major climate-related marketing challenges.
Originality/value
Applying White et al .'s (2019) SHIFT analysis framework to adolescents and entomophagy, this work proposes avenues for action and innovation to reduce the green gap between attitudes and behaviors in the context of sustainable food consumption.
... This finding aligns with previous studies emphasizing the importance of strategic factors in shaping economic and environmental outcomes [13,23]. The confirmation of this relationship suggests that companies need to integrate comprehensive environmental management accounting systems and strategic planning frameworks to enhance sustainability [24]. ...
Environmental issues facing society have become so extensive that governments alone cannot effectively address them. Taxation and regulatory measures to limit negative impacts, as well as incentive policies for activities with positive effects, are among the strategies adopted by governments in this regard. The purpose of this study is to examine the impact of economic development indicators on reducing the adverse environmental effects of corporate activities. The statistical population of the study includes senior executives, middle managers within relevant organizational domains, university professors, and informed economic actors. Given its objectives, this research falls under the category of applied studies. In terms of its methodological approach, it is classified as a descriptive and survey-based exploratory study conducted in both qualitative and quantitative sections. The results indicate that in the economic growth model, strategies influence outcomes, with a path coefficient of 0.841. The t-statistic for this relationship was reported as significant at a 95% confidence level (P-Value ≤ 0.05). Accordingly, the null hypothesis of the study is rejected, and the alternative hypothesis is confirmed, meaning that strategies have a positive and significant impact on outcomes. Therefore, based on the study's findings, economic development indicators in the environmental domain assist managers in the proper implementation and efficient management of financial and physical resources, identifying cost-reduction opportunities, and making better decisions. Additionally, from an external perspective, this technique provides valuable information to stakeholders, such as shareholders, creditors, analysts, and environmental organizations, in both financial and environmental contexts.
... The paper conducted field experiments by randomly combining three kinds of information with three price levels for JPW. Since the success of a new product's performance is a function of pricing and competition [37,38] it could be essential to consider these factors in the diffusion process from consumers' perspectives. The information is grouped into three categories. ...
This paper explores the dynamics of the personal adoption process, specifically focusing on how diffused information and consumer knowledge can accelerate the acceptance of experienced products. The study employs an experimental approach to investigate the multifaceted impacts of brand information on consumer behavior, using newly launched Japanese beef in the Vietnamese market as a case study. Through a direct survey of 480 consumers and a rigorous two-stage analysis, the study evaluates the interplay between individual knowledge and diffused information in shaping adoption behaviors. The findings indicate that enhancing brand information during the introduction phase significantly boosts consumer adoption. Moreover, the influence of information wanes over time, emphasizing the necessity for ongoing marketing efforts. These insights underscore the importance of customizing information strategies to bridge knowledge gaps and mitigate biases, ultimately facilitating the successful market entry and adoption of new products.
... Product advantage, market potential, meeting customer needs, predevelopment task proficiencies, and dedicated resources significantly impact new product performance. Henard and Szymanski (2001) propose a meta-analysis of the new product performance literature to identify key drivers of new product success. They find that among the 24 predictors investigated, factors such as product advantage, market potential, meeting customer needs, predevelopment task proficiencies, and dedicated resources have the most significant impact on new product performance. ...
Utilizing Data Analytics for Software Product Development in the Finance Industry. Aspects like Design, User Adoption, Go-to-market, Finance and trading and Decision making are reviewed. A literature Review.
... Product advantage, market potential, meeting customer needs, predevelopment task proficiencies, and dedicated resources significantly impact new product performance. Henard and Szymanski (2001) propose a meta-analysis of the new product performance literature to identify key drivers of new product success. They find that among the 24 predictors investigated, factors such as product advantage, market potential, meeting customer needs, predevelopment task proficiencies, and dedicated resources have the most significant impact on new product performance. ...
Utilizing Data Analytics for Design, User Adoption, Go-to-Market, Finance and trading and Decision Making.
... The competitive advantage of a product is a greater advantage and/or privilege compared to competitors' offerings (Henard & Szymanski, 2001). Elements of product excellence such as uniqueness, value, and company benefits should be viewed from the customer's point of view, based on an understanding of customer needs and wants, as well as subjective factors (likes and dislikes). ...
... To control for common method variance (CMV), we adopted the suggestions made by Podsakoff et al. (2003) and separately measured the key variables in the survey. With the help of the government, we sent an email invitation to the vice presidents of 600 SMEs and selected them as respondents because they have a good understanding of their firm's basic information, external environment, strategies, learning behavior and innovation level (Henard and Szymanski 2001). Data collection took place in two waves from September 2019 to January 2020. ...
Disruptive innovation is increasingly recognized as a strategy for small and medium-sized enterprises (SMEs) to gain a competitive edge. However, SMEs often face resource constraints that create significant challenges to develop such innovation. Aiming to provide a potential solution for this problem, this study investigates how entrepreneurial bricolage can help SMEs overcome resource constraints to develop disruptive innovation in the context of emerging markets. Drawing on the resource orchestration perspective and using data from two waves of a survey involving 269 Chinese SMEs, the results indicate that entrepreneurial bricolage has a positive impact on disruptive innovation. Moreover, we find that failure-based learning behaviors can strengthen the positive role of entrepreneurial bricolage in driving an SME’s disruptive innovation, particularly when faced with high institutional voids. These findings provide compelling insights for SMEs in emerging markets seeking to gain competitive advantages through disruptive innovation.
... Building on the definitions provided, Wang and Ahmed (2004) formulated a comprehensive framework for understanding corporate innovation, which encompasses five key dimensions: product innovation, market innovation, process innovation, behavioral innovation, and strategic innovation. Product innovation involves creating new or significantly improved goods or services to meet consumer preferences and capture new market segments (Henard and Szymanski 2001;Danneels and Kleinschmidtb 2001). Market innovation focuses on strategies for entering new markets or targeting different customer demographics, which can include launching cutting-edge technology products or updating marketing strategies for existing products (Kjellberg et al. 2015). ...
This study explores the interplay between tax incentives, creative compliance, and innovation in enhancing business resilience and sustainability among micro, small, and medium enterprises (MSMEs) in Indonesia, addressing gaps in the existing literature regarding their interrelationships during crises. A cross-sectional survey of 360 MSMEs was conducted, utilizing the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach to analyze complex relationships among variables. The findings reveal that creative compliance, including tax planning and avoidance, does not directly impact resilience or sustainability. While tax incentives did not significantly enhance resilience during crises, they contributed to long-term sustainability. Innovation emerged as a critical factor linking creative compliance to business success and fully mediating the effects of tax incentives on resilience. This study emphasizes the necessity for MSMEs to prioritize innovation in their strategies, particularly in conjunction with effective tax practices, and highlights the need for government support through simplified regulatory frameworks to foster an innovative business environment. Limitations include the challenges of incorporating control variables in SEM and the need for further research into the long-term effects of these factors on sustainable performance.
... Consumers often use innovativeness as a heuristic to evaluate new products [48]. The perception that a product is innovative can enhance its appeal, leading to increased adoption rates and higher consumer evaluation [50]. The concept of perceived innovativeness is crucial for predicting consumer behavior, including in the restaurant context [15,16,51]. ...
The advent of self-driving technology marks a significant milestone in the evolution of modern transportation and logistics services. More importantly, self-driving food delivery services are expected to play a significant role in environmental protection by operating on batteries instead of the traditional gasoline. The current study examines the relationship between perceived attributes, image, normative factors, and behavioral intentions in the context of eco-friendly self-driving food delivery services. The study deepens the framework by identifying the moderating role of country development status. The study gathered samples from 313 panels in South Korea, a developed country, and 315 respondents in Mongolia, a developing country. The results of the South Korean dataset showed that two types of perceived attributes, perceived innovativeness and perceived risk significantly affect image, which in turn leads to the formation of behavioral intentions. Normative factors, such as subjective norms and personal norms, also positively affect behavioral intentions, and subjective norms increase personal norms. The results of the Mongolian dataset indicated that all paths are statistically supported. Lastly, the moderating role of the country development status was found in the relationship between (1) perceived innovativeness and perceived risk, (2) subjective norms and personal norms, and (3) subjective norms and behavioral intentions.
... Product advantage, market potential, meeting customer needs, predevelopment task proficiencies, and dedicated resources significantly impact new product performance. Henard and Szymanski (2001) propose a meta-analysis of the new product performance literature to identify key drivers of new product success. They find that among the 24 predictors investigated, factors such as product advantage, market potential, meeting customer needs, predevelopment task proficiencies, and dedicated resources have the most significant impact on new product performance. ...
... A third stream explores integrating intuition and data to improve innovation decisions. For example, Henard and Szymanski (2001) show that integrating intuition and evidence helps resolve disagreements among managers that can hamper decision quality. Dayan and Di Benedetto (2011) show that integrating intuition and evidence is an effective way to leverage the expertise of experienced managers for better decision outcomes. ...
Customer insights play a critical role in innovation. In recent years, articles studying customer insights for innovation have risen in marketing and other fields such as innovation, strategy, and entrepreneurship. However, the literature on customer insights for innovation grew fragmented and plagued by inconsistent definitions and ambiguity. The literature also lacks a precise classification of different domains of customer insights for innovation. This article offers four key contributions. First, it clearly and consistently defines customer insights for innovation . Second, it proposes a “customer insights process” that describes the activities firms and customer insights intermediaries (e.g., market research agencies) use to generate, disseminate, and apply customer insights for innovation. Third, it offers a synthesis of the knowledge on customer insights for innovation along ten domains of customer insights for innovation: (1) crowdsourcing, (2) co-creating, (3) imagining, (4) observing, (5) testing, (6) intruding, (7) interpreting, (8) organizing, (9) deciding, and (10) tracking. Fourth, the authors qualify and quantify the managerial importance and potential for scholarly research in these domains of customer insights for innovation. They conducted 12 in-depth interviews with executives at market research agencies such as Ipsos, Kantar, Nielsen, IQVIA, and GfK to do so. They surveyed 305 managers working in innovation, marketing, strategy, and customer experience. The article concludes with a research agenda for marketing aimed at igniting knowledge development in high-priority domains for customer insights for innovation.
... Product quality is crucial for market performance. High-quality products enhance market success and profitability (Sethi, 2000;Henard & Szymanski, 2001). Quality influences market size and consumer preference (Berry & Waldfogel, 2010). ...
Customer Satisfaction, Innovation, and Product Quality are a cornerstone for micro, small, and medium-sized enterprises (MSMEs) seeking growth, competitiveness, and long-term sustainability. This research explores the complexities of how Customer Satisfaction, Innovation, and Product Quality impact the performance of Micro, Small, and Medium Enterprises (MSMEs) within the vibrant Iberoamerican business environment. Utilizing a quantitative methodology, the study examines the interplay between Customer Satisfaction, Innovation, and Product Quality and their collective effect on the operational success of MSMEs in the Iberoamerican region. An index derived from self-reported data was employed to gauge MSME performance, drawing upon a comprehensive survey of 9,300 Iberoamerican MSMEs. Our findings reveal factors such as company origin, size, and age significantly impact the level of innovation achievable by MSMEs; also, innovation has generated resilience in some local sectors for one of the analyzed countries, Colombia. Notably, younger, medium-sized companies exhibit a propensity for higher innovation than older firms and micro-enterprises. The study's implications for theory and practice extend to policymakers, business owners, and stakeholders invested in fostering MSME growth and development.
... In turn, team learning increases NPD's creative and inventive capacities. (Henard & Szymanski, 2001). ...
Objective: The purpose of this research was to analyze the impact of the organizational learning (OL) on marketing capability (MC), the mediating of product innovation on the relationship between OL and MC, and the moderated mediation of product innovation and new product development in the relationship between OL and MC in community enterprise of Khid clothing in Thailand. Theoretical Framework: The theoretical framework for this research provides a comprehensive understanding of the interplay between organizational learning, product innovation, new product development and marketing capability within the context of community enterprises. Method: This report is a part of a larger exploratory study. Information was gathered from 389 people involved in silk-weaving cooperatives in the provinces of UdonThani and Nong Bua Lamphu through the use of questionnaires. Results and Discussion: The data demonstrates a link between strategic organizational learning and competitive advantage. Product innovation and the knowledge gained by an organization about how the market works go hand in hand. Lastly, the impact of product innovation on the link between organizational learning and market capability was tempered by the introduction of a new product. Research Implications: For Khid Clothing, integrating these theoretical perspectives can provide a comprehensive strategy for sustained growth and competitive advantage. The interplay between organizational learning, product innovation, new product development, and marketing capabilities creates a robust framework for the company to thrive in the competitive fashion industry. Originality/Value: The theoretical contributions of organizational learning, product innovation, new product development, and marketing capabilities provide Khid Clothing with a comprehensive approach to enhance its competitive edge, adapt to market changes, and achieve long-term success. By leveraging these theories, Khid Clothing can strategically position itself in the fashion industry, meet evolving customer demands, and drive sustainable growth.
... Market share was found to be significantly positively impacted by a product's inventive success (standardized estimate = 0.64, p = 0.001). According to earlier studies, product innovation can greatly boost market share [27]. Market share = 0.268 (innovative success) + 2.626 (Table 12). ...
This empirical study aims into how market orientation and competitive strategy orientation affect the success of innovative products in small and medium-sized Ethiopian businesses. Small and medium-sized businesses are essential to economic growth, especially in developing nations like Ethiopia, where they are the main drivers of local development and the generation of jobs. However, these companies face significant challenges including scarce resources and volatile markets, necessitating the use of tactical approaches to preserve their competitiveness and foster growth. A mixed-methods approach was used in this cross-sectional study, with 396 respondents completing self-administered questionnaires for the quantitative data and semi-structured open-ended interviews for the qualitative data. The analysis was conducted using SPSS and the AMOS app. The findings show both an increase in competitive strategy orientation and market orientation results in an increase product inventive success, and also, an increase in product innovative success results in an increase in both market share and financial performance. The study also demonstrates the noteworthy and indirect positive relationships that market orientation and competitive strategy orientation have on market share and financial success. The outcomes showed how crucial these strategic orientations are to the capacity of Ethiopian SMEs to innovate, overcome challenges, preserve their competitiveness, and promote economic growth. The study emphasizes how important it is for Ethiopian SMEs to have a competitive strategy orientation that is in line with their market orientation in order to successfully innovate new products. Businesses can better respond to market needs and competitive pressures and promote innovation by utilizing insights from competitive analysis and market research, by offering insightful guidance on enhancing innovation and competitiveness in the Ethiopian context, as well as practical pointers for SME leaders and policymakers, this study fills a vacuum in the literature.
... New product success is a popular research area, particularly studies exploring the conditions to increase success (e.g. Henard and Szymanski, 2001;Montoya-Weiss and Calantone, 1994). The most recent meta-analysis synthesized results for over 30 conditions (see, Evanschitzky et al., 2012), relating to the product, its strategy, process, the marketplace environment and the organization, for multiple types of new products. ...
Purpose
New product introductions, particularly line extensions (LEs), are common in consumer goods categories. Despite their commonality, the success of LEs are not guaranteed. The purpose of this study is to provide brands that introduce LEs a benchmark about what success to expect.
Design/methodology/approach
This study investigates the success of 36,994 LEs in each quarter for the first three years after introduction. Four indicators are calculated using consumer panel data to benchmark how long LEs survive (failure rate), how competitive they are in the category (market share) and how they are adopted by category buyers (penetration and repeat buyer rate).
Findings
Most LEs survive after the first year, but many cease to exist or perform well in the long term. Around 50% of LEs fail a year after launch, but this failure rate halves once seasonal LEs are removed. Failure rates start to approach 80% after three years. Most LEs do not perform better than existing products. Around three in four LEs have a market share or penetration near or below the category norm. Although this percentage decreases the longer after launch, most LEs are still below the category norm.
Practical implications
These new product success benchmarks provide guidelines to practitioners about what success the “typical” LE will achieve. This research can help guide new product investment decisions because it provides context on what is feasible to achieve.
Originality/value
Four market success measures are used, a departure from past benchmarking research which uses practitioner evaluation on metrics seldom used in practice. The authors provide guidelines about when and how to measure LE and new product success more broadly.
... Developing and commercialising new products give competitive advantages and are essential for a company's growth and sustainability (Iqbal & Suzianti, 2021). Many researchers state that the NPD process is an essential key success factor for product development (Cooper, 2019;Cooper & Kleinschmidt, 2007;Evanschitzky et al., 2012;Florén et al., 2018;Henard & Szymanski, 2001). The NPD process is defined as specific steps describing how an organisation transforms its product idea into marketable products("The PDMA Handbook of New Product Development, 3rd Edition| Wiley," 2012). ...
The issue of eco-friendliness and sustainable development is crucial in various domains of our lives. This also affects the production of products and the provision of services. One of the first stages of a product’s life deserves special attention, i.e. the area of new product development, in which all its features and limitations are defined, which also results in the type of manufacturing process. Therefore, this paper aims to explore and propose the possibility of implementing mechanisms for evaluating the environmental performance of products and processes at that stage of product life using product life cycle management tools. One of the main assumptions was that the developed data model would facilitate sharing of experiences and knowledge with an open community of users. For this purpose, the concept of effective community knowledge management in new product development was developed. The proposed model of such a framework considers the significant participation of all actors and data sources, both internal and external, in creating and managing the knowledge base about green indicators and related objects. In the final step, we present the concept of effective management and sharing of knowledge by the community, creating the Green Product Lifecycle Management user community cloud to ensure the collected data’s highest quality (ranking) and quantity (gamification). The work described was conducted and implemented in the GreenPLM project, which aimed to extend the functionality of existing systems to enable the assessment of the environmental performance of new products and processes at various stages of their lives.
... Scholars have shown that crowdfunders largely behave like consumers when deciding which campaigns to back (Chan & Parhankangas, 2017). Product usefulness is one of the main attributes that is consistently linked to the success of a new product (Cooper, 1979;Dahl et al., 1999;Gatignon & Xuereb, 1997;Henard & Szymanski, 2001). Indeed, a long tradition of consumer behavior suggests that individuals prefer products that provide clear utility (e.g., Billeter et al., 2011). ...
Serendipity has played a significant role in the history of invention. Yet, little is known about whether serendipitous inventions are perceived as more or less innovative and thus achieve greater success in seeking funding than those resulting from deliberate processes. The current study explores this issue using a matched-pair sample of 168 serendipitous and non-serendipitous inventions used by entrepreneurs to raise capital through crowdfunding. The results demonstrate that serendipitous inventions are more positively related to crowdfunding success than non-serendipitous ones via perceptions of product innovativeness. Thus, serendipitous inventions appear to be socially rewarded rather than penalized in the context of crowdfunding.
... From this perspective, the development of economic entities and territorial units would seem to be significantly conditioned by innovative activity. Many studies have addressed the search for its determinant (Cohen, 1995;Guevara et al., 2020;Henard & Szymanski, 2001;Jakimowicz & Rzeczkowski, 2019;Montoya-Weiss & Calantone, 1994;Restrepo-Morales et al., 2019). Considerably less attention has been paid to the barriers to innovation (García-Quevedo et al., 2020;Iammarino et al., 2007;Mohnen et al., 2008;Silva et al., 2007). ...
The innovation of enterprises and regions constitutes one of the key foundations in building a competitive advantage. In this context, innovative activity, its determinants and barriers become of particular importance. This article focuses on the barriers to innovation, comparing the source literature with the solutions offered by official statistics in terms of the relevant terminology and the distribution of constraints to innovation. The empirical research aimed to identify the major barriers to the innovative activities of Lower Silesian enterprises, and capture possible differences in the perception of obstacles to innovation in the environment of industrial and service enterprises viewed from the perspective of 2019 and 2021. The analyses indicate that regional manufacturers and service providers face similar barriers to innovation (e.g. cost factors), but that these are much more frequently observed in the industrial sector. The research procedure employed the methods of source literature critical analysis and descriptive statistics.
... PMO fundamentally entails actively seeking and acquiring a wider variety of information, enabling firms to engage actively in further experimentation by surpassing previous constraints [66]. The PMO assists companies in establishing a robust framework for improving the procedures involved in their new product development and prioritizing customer involvement [67,68]. Guides firms on the strategies and optimal time for maximizing the positive impact of new product performance [69] because close engagement with advanced users and experimentation lead to developments in innovations [70]. ...
This research investigates how two types of market orientation, proactive and responsive, affect the ability of technology-based companies to innovate their business models in a rapidly evolving technological landscape. It also examines how two different approaches to decision-making, effectuation and causation, influence these effects. We relied on the 333 valid responses collected from Chinese technology-based enterprises to analyze proactive and responsive market orientation for business model innovation (BMI) in configuration with effectuation and causation as moderators, using a configurational comparison method, “fuzzy-set qualitative comparative analysis” and a Necessary Condition Analysis. The study reveals that market orientations and effectuation causation positively contribute to BMI. However, the study also found that effectuation weakens the positive relation between RMO and BMI, while causation enhances the positive influence of RMO on BMI. On the other hand, in the case of PMO, effectuation strengthens the relationship between PMO and BMI, while causation weakens the relationship between PMO and BMI. This study also explains that effectuation and causation enhance firms' external capabilities in making or reconfiguring alliances.
... (Caputo et al., 2022;Jiang et al., 2023;Sedera et al., 2016;Teece, 2018 (Caputo et al., 2022;Cenamor et al., 2019;Frishammar et al., 2018;Helfat & Raubitschek, 2018;Jiang et al., 2023;Li et al., 2018;Sedera et al., 2016;Teece, 2018 Fitzgerald et al., 2014;Mubarak et al., 2019;Verhoef et al., 2021;Vial, 2019). (Damanpour, 1991;Henard & Szymanski, 2001 (Fitzgerald et al., 2014;Nwankpa & Roumani, 2016;Paavola et al., 2017;Piccinini et al., 2015;Verhoef et al., 2021;Vial, 2019 Klein, 2020;Mubarak et al., 2019;Prince, 2018;Shin et al., 2023;Tanniru, 2018 Therefore, the CEO must manage the organization's digital readiness to improve through digital leadership in order to affect the performance of the digital business. Through this, it is thought that the competitive advantage in the market, corporate awareness, and customer satisfaction will also improve through the use and development of various digital technologies such as automated business processing and customer information analysis of manufacturing companies in the future. ...
Product Lifecycle Management (PLM) provides a paradigmatic model that enables companies to operate more effectively in the face of shorter product lifecycles, global networking, and increasing complexity. However, despite strengthening the PLM initiative, companies still struggle to implement this concept. The limited results of current PLM implementations often stem from a lack of unique indicators or consistent methodologies that help companies prioritize their implementation efforts. This article proposes an approach to set a PLM strategy, focusing on enhancing company innovation potential by introducing a structured methodology capable of (i) capturing latent needs based on the normative-contingent New Product Development (NPD) evaluation model and (ii) quantifying the influence of various PLM functional aspects on NPD capability. The proposed methodology is based on the Quality Function Deployment (QFD) method, modified to overcome the limitations of the conventional approach, employing the Analytic Hierarchy Process (AHP) for prioritizing request attributes and the Evaluation based on Distance from Average Solution (EDAS) method for quality attribute importance ranking. Motivated by the arbitrary and vague nature of the decision-making environment in the PLM implementation projects, which introduces uncertainties that could be effectively managed by fuzzy logic, the study introduces Interval Type-2 Fuzzy Sets (IT2FSs) to minimize ambiguity and inconsistency in expressing and modeling preferences. The main study contribution pertains to generating quantitative and objective guidelines for adequately grounding a PLM strategy from the perspective of enhancing the company’s innovation potential. The findings of this study ultimately contribute to establishing an optimal model of the PLM concept implementation process, tailored to specific company requirements. Finally, an empirical case study demonstrates the effectiveness and practicality of the proposed approach.
This study looked at innovation and technology orientation which provide IT-based businesses a competitive edge in the context of small and medium-sized businesses (SMEs), which are particularly susceptible to high levels of technological turbulence. The research process consisted of three steps: 1) a literature review; 2) an empirical investigation utilizing questionnaires to collect data; and 3) a structural equation modeling (SEM) and confirmatory factor analysis (CFA) analysis and interpretation of the results. The results shown that competitive advantage is directly increased by technology orientation, and that even in the face of significant technological instability, competitive advantage keeps growing when innovation is incorporated into the model as a mediator. According to the findings, entrepreneurs-SMEs in particular-need to be able to adjust and quickly become ready for the impending technological changes in the environment, which will happen not only on a global scale but also at the national and industrial levels. Organizations must prioritize the growth of innovation in addition to their technological orientation. In this fiercely competitive world, innovation will become a vital strategic tool for companies looking to expand, start, and improve their operations and acquire competitive advantages that are comparable to or better than those of their competitors.
Purpose: This paper investigates how project-oriented structures enhance organizational innovativeness in technology-based, knowledge-intensive business service (T-KIBS) firms in Central and Eastern Europe (CEE). By focusing on how and why project orientation stimulates innovation, the study addresses a gap in project theory within innovation research. Design/methodology/approach: A qualitative approach was adopted, involving 22 semi- structured interviews with senior management, project leaders, and innovation managers in T-KIBS companies operating in CEE. Data were collected during the third and fourth quarters of 2018 and analyzed using both categorization and thematic analysis. Findings: Results indicate a positive association between project orientation and higher levels of innovativeness, driven by four distinguishing project characteristics: uniqueness, autonomy, co-production, and transcendence. The study proposes a conceptual model that identifies 13 potential moderators of this relationship, including management support, leadership style, strategic planning, control mechanisms, employee competences, cross-functional teams, staff engagement, client involvement, inter-project collaboration, internal reporting systems, accessible information, risk tolerance, and an overall willingness to innovate. Originality/value: This research advances both project management and innovation theory by introducing a framework that connects project-based organizing with firm-level innovativeness in the T-KIBS sector. From a theoretical perspective, the findings highlight the significance of industry-specific contexts, suggesting that unique sectoral conditions can shape project management practices and, in turn, drive innovation outcomes. Keywords: project, project-based organisation, innovativeness, KIBS. Category of the paper: Research paper.
Penelitian ini bertujuan untuk mengetahui: (1) Pengaruh Mutu Pelayanan terhadap Kepuasan Anggota pada KOPSYAH MUI Cabang Sekapuk, (2) Pengaruh Reputasi Koperasi terhadap Kepuasan Anggota pada KOPSYAH MUI Cabang Sekapuk, (3) Pengaruh Keunggulan Produk Simpanan terhadap Kepuasan Anggota pada KOPSYAH MUI Cabang Sekapuk, (4) Pengaruh Mutu Pelayanan, Reputasi Koperasi, dan Keunggulan Produk Simpanan terhadap Kepuasan Anggota pada KOPSYAH MUI Cabang Sekapuk. Penelitian ini menggunakan metode kuantitatif. Populasi dalam penelitian ini adalah Anggota KOPSYAH MUI Cabang Sekapuk di Desa Cangaan Ujungpangkah Gresik. Teknik pengambilan sampel menggunakan non probability sampling dengan jumlah sampel sebanyak 50 responden dengan menggunakan rumus slovin. Teknik pengumpulan data melalui angket (kuesioner) dan analisis data menggunakan analisis regresi linier berganda serta pengolahan data menggunakan software SPSS versi 29. Hasil penelitian ini menunjukkan bahwa: (1) terdapat pengaruh positif dan siginifikan Mutu Pelayanan terhadap Kepuasan Anggota pada KOPSYAH MUI Cabang Sekapuk, (2) terdapat pengaruh positif dan siginifikan Reputasi Koperasi terhadap Kepuasan Anggota pada KOPSYAH MUI Cabang Sekapuk, (3) terdapat pengaruh positif dan siginifikan Keunggulan Produk Simpanan terhadap Kepuasan Anggota pada KOPSYAH MUI Cabang Sekapuk. Kesimpulannya adalah terdapat pengaruh Pengaruh Mutu Pelayanan, Reputasi Koperasi, dan Keunggulan Produk Simpanan secara bersama - sama terhadap Kepuasan Anggota pada KOPSYAH MUI Cabang Sekapuk.
Purpose
This paper aims to propose and test a model to analyze the relationship between innovative behavior and culture of innovation in organizational performance.
Design/methodology/approach
It is a quantitative descriptive method based in structural equation model using SmartPLS® software to measure the correlations between the variables related to the constructs of culture of innovation, innovative behavior and performance.
Findings
The proposed model and method were validated through the empirical study. The results indicate a positive influence among the constructs demonstrating that the culture of innovation has a greater effect on performance, managing to explain an approximate variation of 54, confirming the proposed hypotheses. The overall result shows 39% of the variance in performance, due to variations in innovative behavior and innovation culture.
Research limitations/implications
Although the study does not focus on generalizing results, but rather advancing discussions of the tested relationship between the constructs, it can be emphasized that the sample used refers to the musical instruments sector of a country.
Practical implications
The research contributes in an unprecedented way with the Brazilian musical instruments sector and instigates new empirical studies generating contribution to business management and the consequent development of the economy.
Social implications
The research contributes in an unprecedented way with the Brazilian musical instruments sector and instigates new empirical studies generating contribution to business management and the consequent development of the economy.
Originality/value
The literature lacks empirical studies that relate innovative behavior, culture of innovation and performance, and this study contributes to this discussion. Based on a theoretical approach to understanding this relation, the study confirms the relevance of the proposed model and its applicability in the business context.
Being the major players in promoting innovation, enterprises are therefore central to innovation–based development. Establishing how vibrant they are in terms of innovation has become a heavily debated issue in both academic and industry circles. Through a sample involving Chinese listed companies in advanced material manufacturing, this study utilizes exploratory factor analysis to develop an evaluation system of enterprises’ innovation vitality on the basis of three dimensions: innovation persistence, volatility, and growth. The study establishes deeper interaction between innovation vitality and two major indicators-persistence and volatility formats input and cooperation, while also promoting the growth of innovative input and output. This study adds insights related to the objective assessment of enterprises’ innovation vitality and the promotion of subsequent innovation efforts.
Sosyal Beşeri ve idari Bilimler
Although radical innovation is a prerequisite to sustain long-term competitive advantage for firms, they often fail to exploit technological opportunities that could lead to radical innovations due to their inability to properly evaluate market potential. This study focuses on marketing organizational structure and identifies three types of structures based on how marketing units are positioned within firms. Additionally, this research examines whether such positioning affects the frequency of radical innovations through market exploration. This study analyzed the data collected from 162 Japanese companies. The results show that the differences in the marketing-unit positioning influence market exploration. Furthermore, market exploration is positively related to the frequency of radical innovations.
Automobile manufacturing industries are looking at innovative ways to improve their company processes globally to maintain profitability in an increasingly complicated and competitive global market. There is fierce competition in the automotive business, which is evolving quickly. A crucial constituent of an organization’s success, survival, and vitality in such industries is the process of new product development. Several studies have been conducted to investigate the success factors of the new product development process in the Automobile industry. This research work tested the hypothesis that factors influence the process of new product development in the Automobile manufacturing industries of Maharashtra. The evidence was collected from higher officials of respective industries. The findings show that market orientation, market competition, and organizational culture have a significant impact on the New Product Development Process in the Automobile Manufacturing industry. The result of this study also shows that the role of governance and organization competence and resources do not impact the New Product Development Process. This suggests that management in the Automobile manufacturing industry strategy should focus on all the possible influential factors during the process of product development.
İşletmeler varlıklarını devam ettirebilmek için performanslarını artırmaya ve rekabet avantajı elde etmeye ihtiyaç duymaktadır. Dijitalleşme bu ihtiyaç doğrultusunda kullanılan araçlardan biridir ve verimlilik artışına odaklanmasının yanında geçmiş uygulamaları değiştiren yıkıcı bir dönüşüme neden olmaktadır. İnovasyon yeteneği ise değişimin hızlı yaşandığı zamanlarda işletmelerin rekabet avantajlarını korumasına katkı sağlamaktadır. Yeni ürünlerin geliştirilmesi ve yeni sistemlerin başarılı bir şekilde uygulamaya alınması inovasyon yeteneği yoluyla yapılabilmektedir. Bu açıklamalar doğrultusunda, işletmelerde performans, dijitalleşme ve inovasyon yeteneği kavramlarının birlikte incelenmesinde yarar görülmüştür. Dolayısıyla bu çalışmada işletmelerde dijitalleşmenin işletme performansı üzerindeki etkisinin ve bu etkide inovasyon yeteneğinin aracı rolü olup olmadığının belirlenmesi amaçlanmıştır. Nicel olarak tasarlanan araştırma sonunda 380 imalatçı KOBİ’den anket aracılığıyla veri toplanmıştır. Toplanan veriler SPSS 27 ve AMOS programları kullanılarak analiz edilmiştir. Bulguların elde edilebilmesi için doğrulayıcı faktör analizi, korelasyon analizi ve yapısal eşitlik modeli kullanılmıştır. Korelasyon analizi sonuçları, araştırmanın değişkenleri arasında anlamlı ve güçlü ilişkiler olduğunu göstermiştir. Araştırmanın bağımsız değişkeni dijitalleşme ile bağımlı değişkeni işletme performansı arasında anlamlı ve pozitif bir ilişki vardır. En güçlü ilişkinin ise dijitalleşme ve inovasyon yeteneği arasında olduğu görülmüştür. İnovasyon yeteneği ile işletme performansı arasında da oldukça güçlü bir ilişki vardır. Yapısal eşitlik modeli sonuçları, imalat sanayinde faaliyet gösteren KOBİ’lerde dijitalleşmenin işletme performansı üzerinde pozitif etkisi olduğunu ve bu etkide inovasyon yeteneğinin aracı rolü bulunduğu göstermiştir. Diğer bir ifadeyle, imalatçı KOBİ’lerde dijitalleşme kullanılarak inovasyon yeteneğinin artırılabileceği, bunun da performans artışına ve pazarda daha rekabetçi konuma ulaşılmasına katkı sağlayacağı görülmüştür. Sonuç olarak, dijitalleşmenin inovasyon yeteneğini ve işletme performansını artırma potansiyeli dikkate alındığında önemli bir rekabet avantajı aracı olduğu ortaya konulmuştur.
يهدف البحث الى دراسة دور بعض العوامل المسببة للرضا الوظيفي في الأداء التسويقي لدى عينة من العاملين في عدد من البنوك التجارية في مدينة أربيل من خلال التعرف على مدى تأثر العاملين ببعض العوامل المسببة للرضا الوظيفي ودورها في الاداء التسويقي ، فقد اعتمد الباحثون على الرضا الوظيفي باعتباره متغيّراً مستقلاً التي تتكون من خمسة أبعاد وهي (العلاقة مع الزملاء، العلاقة بين الرؤساء والمرؤوسين، العدالة، الرغبة في الاستمرار بالعمل، طبيعة العمل) والأداء التسويقي بوصفه متغيّراً معتمداً التي تتكون من أربعة أبعاد وهي (نمو المبيعات، الحصة السوقية، الربحية، رضا العملاء) مع الوقوف على مدى تأثر العاملين في عدد من البنوك التجارية في مدينة أربيل بمجموعة من العوامل المسببة للرضا الوظيفي وفقا لخصائصهم الشخصية. استخدام الباحثون المنهج الوصفي التحليلي للوصول إلى نتائج البحث اذ قام الباحثون بإعداد الاستبانة لعينة طبقية عشوائية في عدد من البنوك التجارية بلغت (250) مفردة وفقا لملحق (1) للحصول على تصور كامل ودقيق حول موضوع البحث.
وتوصل الباحثون الى مجموعة من النتائج من أهمها: وجود مستويات جيدة لمتغيري البحث فضلاً عن وجود العلاقة والتأثر بينهما وأوصى الباحثون بضرورة المحافظة على المستويات الجيدة لمتغير العوامل المسببة للرضا الوظيفي والأداء التسويقي وضرورة استثمار العلاقة القوية بينهما على المستوى الكلي والجزئي وتوجيه هذه العلاقة نحو نجاح والاستمرار في العمل المصرفي.
Eco‐innovation is important for sustainable development and organizational culture is an endogenous factor that can affect eco‐innovation. Different types of organizational culture can have differentiated effects on enterprise eco‐innovation. This study aims to reveal the relationship between organizational culture and eco‐innovation and analyze the mechanism of the influence of organizational culture on eco‐innovation at the individual and organizational levels. Manufacturing firms in China are selected as the research sample, and structural equation modeling is used for the empirical analysis. Results show that adhocracy culture and clan culture have a positive impact on the eco‐innovation of the firms, and green creativity and green absorptive capacity play a partial mediating role in the relationship. Moreover, hierarchy culture and market culture have no significant impact on the eco‐innovation of the enterprises, but green creativity plays a complete intermediary role in the relationship between hierarchy culture and eco‐innovation. Based on the conclusions, the management implications are discussed, and future research directions are outlined.
E-commerce platforms are playing an increasingly important role in influencing manufacturers’ supply chain and product decisions. An emerging supply chain innovation, known as the platform-based consumer-to-manufacturer (PC2M) model, has been initiated by several large e-commerce platforms based on established digital links between consumers and manufacturers. These links enable consumer inputs into manufacturers’ operations, indirectly by capturing consumer preferences from platform-accumulated big data and directly by enabling consumer interaction with manufacturers through the e-commerce platform. Although manufacturers are increasingly integrating PC2M into new product development (NPD), there is little research on operations innovations in connection with the PC2M model and its impact on manufacturers’ new product success. To fill this research gap, we investigate the PC2M model of JD.com, a leading e-commerce platform in China that launched the PC2M model in 2018. We first identify two uses of PC2M by manufacturers to facilitate product development—platform-enabled big data analytics (PBA) and platform-enabled simulated product trials (PST)—and explore how PC2M enables operations innovations in NPD. Next, drawing on the knowledge-based view, we develop research hypotheses and empirically examine whether PC2M adoption improves new product performance using a large-scale, transactional dataset from JD.com. Through a series of carefully executed analyses, our study consistently finds that use of either PBA or PST in manufacturers’ NPD processes improves new product performance. We also explore how these effects vary across product types and markets with varying new product introduction rates. The findings offer important managerial insights for improving new product success in today's data-rich environment.
Purpose
This study develops an empirical framework to address how large third-party sellers (TPSs) can apply customer acquisition strategies to improve their performance in consumers’ person-goods matching process and how the platform firm’s similar strategies moderate the effects of TPSs’ strategies.
Design/methodology/approach
Using data collected from the top ten TPSs from a Chinese e-commerce platform, the fixed effect model is used to validate the conceptual model and hypotheses.
Findings
The study results show that both market detection strategy and matching optimization strategy can help large TPSs improve their sales performance. Moreover, the similar market detection strategy applied by the platform firm weakens the effect of large TPSs’ customer acquisition strategies, while the similar matching optimization strategy applied by the platform firm strengthens the effect of large TPSs’ customer acquisition strategies.
Originality/value
This study provides firsthand evidence on the performance of large TPSs’ and the platform firm’s strategies. It demonstrates the effectiveness of large TPSs’ market detection strategy and matching optimization strategy, which can be adopted to meet consumers’ search and evaluation motivations in their person-goods matching process respectively. Moreover, it identifies the role of platform firms by showing the moderating effect of similar strategies adopted by the platform firm on the effect of large TPSs’ customer acquisition strategies.
Objective
Perceived innovation is considered a significant predictor of purchase intention. This study explores the influence of perceived innovation on purchasing intention and the mediating role of perceived quality, especially for female consumers. The impact of four dimensions of perceived innovation on purchase intention is studied separately.
Methodology
A survey of 227 female respondents revealed that female attitudes toward innovation have changed. The hypothesized relations were tested with a sample of 227 respondents by applying different statistical tests. Mediation analysis was conducted by using process macro.
Findings
The study results show that four dimensions of perceived innovation positively influence purchase intention. Perceived quality significantly mediates all relationships. There exists partial mediation in all relationships.
Value Added
The study analyses a valuable part of the growing cell phone market in Pakistan, and the methodology can be used for broader research.
Recommendations
The study suggests that marketers can develop innovative marketing and service strategies to attract more females. Further, the focus should be placed on product innovation and technology innovation.
This study aims to measure the impact of innovation marketing on marketing performance level, which is considered like a company competitiveness index, where the companies have become obliged to ensure the profitability of each dinars spend on various marketing activities. Through this framework and these variables, we'll try to measure the impact of marketing innovation on marketing performance of Mobilis company, By doing studied a sample of 30 employees for this company through the survey depends on the Likert scale. After statistical analysis of the data collected, the study concluded that the innovation marketing have a positive impact on marketing performance of Mobilis, especially with marketing skills and distribution innovation.
This article compares problems and strategies cited in the services marketing literature with those reported by actual service suppliers in a study conducted by the authors. Discussion centers on several broad themes that emerge from this comparison and on guidelines for future work in services marketing.
Developing new products is an important activity for firms in the global, competitive marketplace. While marketing plays an important role in the process of developing new products, few studies have examined marketing's role in developing new products in East Asia. This research focuses on comparing marketing's contribution to the new product development process in South Korean and Taiwanese firms. South Korea and Taiwan have rapidly expanding economies that depend heavily on foreign exchange. In addition, these two countries have successfully transformed themselves from producing mainly low-value, labor-intensive goods to producing many high-value, high-technology products that require significant marketing savvy and proficiency. In this article, a model of the interrelationships among marketing resources, skills, activities, and new product performance is developed and tested using data on 372 recently developed South Korean new products and 306 recently developed Taiwanese new products. The results generally support the model, though some interesting differences were found between the two countries. It was found that merely possessing large quantities of marketing resources is not a key to new product success. Rather, the marketing skills derived from marketing resources and the proficiency in conducting marketing activities are important for successfully developing new products in South Korean and Taiwanese firms.
This article reports the results of Project NewProd, an extensive investigation into what separates successful from unsuccessful new industrial products. Multivariate methods are used to probe this success/failure question. The dimensions underlying success and failure are identified. The dominant role of product strategy and the need for a strong market orientation clearly are demonstrated.
Managing new product development (NPD) is, to a great extent, a process of separating the winners from the losers. At the project level, tough decisions must be made throughout each development effort to ensure that resources are being allocated appropriately. At the company level, benchmarking is helpful for identifying the critical success factors that set the most successful firms apart from their competitors. This company- or macro-level analysis also has the potential for uncovering success factors that are not readily apparent through examination of specific projects.
This article reports the results of Project NewProd, an extensive investigation into what separates successful from unsuccessful new industrial products. Multivariate methods are used to probe this success/failure question. The dimensions underlying success and failure are identified. The dominant role of product strategy and the need for a strong market orientation clearly are demonstrated.
Success is not just elusive; it is also multifaceted and difficult to measure. A firm can assess the success or failure of a development project in any (or all) of many terms, including customer satisfaction, financial return, and technical advantage. To complicate matters, success may be measured not only at the level of the individual project, but also at the program level. With so many variables to consider and so many stakeholders involved, managers face a difficult challenge just deciding which measures are useful for measuring product development success. Recognizing that no single measure suffices for gauging the success of every product development project, Abbie Griffin and Albert L. Page hypothesize that the most appropriate set of measures for assessing project-level success depends on the project strategy. For example, the objectives (and thus, the success criteria) for a new product that creates an entirely new market will differ from those of a project that extends an existing product line. Similarly, they hypothesize that the appropriate measures of a product development program's overall success depend on the firm's innovation strategy. For example, a firm that values being first to market will measure success in different terms from those used by a firm that focuses on maintaining a secure market niche. To test these hypotheses, product development professionals were presented with six project strategy scenarios and four business strategy scenarios. For each project strategy scenario, participants were asked to select the four most useful measures of project success. For each business strategy scenario, participants were asked to choose the set of four measures that would provide the most useful overall assessment of product development success. The responses strongly support the idea that the most appropriate measures of project-level and program-level success depend on the firm's project strategy and business strategy, respectively. For example, customer satisfaction and customer acceptance were among the most useful customer-based measures of success for several project strategies, but market share was cited as the most useful customer-based measure for projects involving new-to-the-company products or line extensions. At the program level, firms with a business strategy that places little emphasis on innovation need to focus on measuring the efficiency of their product development program, while innovative firms need to assess the program's contribution to company growth.
Several researchers have documented that controversy in which opposing views are openly discussed can contribute to decision making. A series of experimental andfield studies by the author and his associates has identified the dynamics of controversy and specified interpersonal conditions that affect controversy's outcomes. Findings indicate that controversy must be well managed before it is productive and must suggest the procedures and skills needed to make problemsolving groups effective. Controversy occurs in many organizational settings, but its potential role has been largely overlooked. This review suggests the implications of controversy research for strategic decision making, performance appraisal, and participation.
The authors present a case for integrating technology and marketing strategy as key elements that affect corporate success in rapidly changing environments. After describing the implications of technological change for firm behavior, the authors propose a framework for developing a technology strategy and introduce the technology portfolio. The technology portfolio serves both as a model for technological resource allocation and as an aid in choosing an optimal set of technologies from a set of feasible alternatives.
A conceptual model articulating the nature and determinants of customer expectations of service is proposed and discussed.
The model specifies three different types of service expectations: desired service, adequate service, and predicted service.
Seventeen propositions about service expectations and their antecedents are provided. Discussion centers on the research implications
of the model and its propositions.
Several difficulties are noted with general questions psychologists have been asking about human accuracy, such as whether people are typically accurate or inaccurate, what the boundary conditions for accuracy are, or the general process whereby accuracy may be improved. Instead, a situationally specific approach to accuracy is adopted in which a central role is assigned to the judgmental process. Accordingly, two general paradigms are distinguished addressing accuracy from realistic and phenomenal perspectives. The realist paradigm focuses on Ss' judgments and the degree to which these correspond to an external criterion. The phenomenal paradigm focuses on Ss' internal criterion as well as their perceptions of the target judgment and the judgment-to-criterion correspondence. Research possibilities in each paradigm are noted. It is suggested that attention to judgmental factors may extend accuracy work in previously unexplored directions. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
summarizes and presents a critique of the existing literature on group level innovation [within organizations] / goes on to present findings from an empirical study . . . of status group differences in perceptions of the innovation process / suggests strategies for future group level innovation research, concluding with five specific recommendations
leadership / cohesiveness / group longevity / group composition / group structure (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Developed to offer researchers an informative account of which methods are most useful in integrating research findings across studies, this book will enable ...
A meta-analysis of 213 applications of diffusion models from 15 articles relates model parameters to the nature of the innovation, the country under study, model specification, and estimation procedure. The effect of use of the same data by several researchers is examined, as are weighting schemes for improving efficiency of the meta-analysis. A Bayesian scheme is used to combine results from the metaanalysis with new data for estimation of parameters in a new situation.
A three-phase quantitative investigation of relationships involving salesperson job satisfaction was undertaken. First, the strength, valence, and consistency of pairwise relationships were assessed by means of a meta-analysis. Second, methodological characteristics coded as moderator variables were used to account for variability in study effects. Finally, weighted mean correlations resulting from the analysis of pairwise relationships were used to evaluate a causal model of antecedents and consequences of job satisfaction. In general, relationships involving job satisfaction were robust across study contexts. Systematic moderating effects of type of sales-force and operationalization of job satisfaction were found. Several summary conclusions about antecedents and consequences of salesperson job satisfaction are drawn from the analyses.
The authors investigate whether it is necessary to include disconfirmation as an intervening variable affecting satisfaction as is commonly argued, or whether the effect of disconfirmation is adequately captured by expectation and perceived performance. Further, they model the process for two types of products, a durable and a nondurable good, using experimental procedures in which three levels of expectations and three levels of performance are manipulated for each product in a factorial design. Each subject's perceived expectations, performance evaluations, disconfirmation, and satisfaction are subsequently measured by using multiple measures for each construct. The results suggest the effects are different for the two products. For the nondurable good, the relationships are as typically hypothesized. The results for the durable good are different in important respects. First, neither the disconfirmation experience nor subjects’ initial expectations affected subjects’ satisfaction with it. Rather, their satisfaction was determined solely by the performance of the durable good. Expectations did combine with performance to affect disconfirmation, though the magnitude of the disconfirmation experience did not translate into an impact on satisfaction. Finally, the direct performance-satisfaction link accounts for most of the variation in satisfaction.
The authors present a case for integrating technology and marketing strategy as key elements that affect corporate success in rapidly changing environments. After describing the implications of technological change for firm behavior, the authors propose a framework for developing a technology strategy and introduce the technology portfolio. The technology portfolio serves both as a model for technological resource allocation and as an aid in choosing an optimal set of technologies from a set of feasible alternatives.
The authors attempt to assess what has been learned from econometric models about the effect of advertising on sales. Short-term and long-term advertising response as well as model fit are analyzed for 128 econometric models involving the impact of advertising on sales. The approach, a form of meta-analysis called “replication analysis,” treats the studies as imperfect experimental replications and uses ANOVA to identify sources of systematic variation. For short-term advertising elasticities, systematic variability is found related to model specification, estimation, measurement, product type, and setting of study. For advertising carryover and model goodness of fit, the “quasi-experimental design” is so imperfect that a high degree of sharing of explained variance among explanatory factors makes it difficult to identify the impact of a particular factor. Because the studies mostly address mature products in the U.S., suggestions are made for research needs crucial to better understanding of how advertising affects sales.
An issue debated frequently in the international marketing literature centers on whether a business should pursue a strategy that is standardized across national markets or adapted to individual national markets. Of the two aspects relating to standardization of marketing strategy across national markets—(1) standardization of the pattern of resource allocation across marketing mix variables integral to a business's marketing strategy and (2) standardization of the strategy content with respect to individual marketing mix variables—the latter has been the subject of numerous conceptual articles. However, there is a relative dearth of empirical studies on both issues. To partially fill this void, this study addresses empirically the question of the standardization of the pattern of resource allocation among marketing mix variables across national markets. The question is addressed by examining whether competitive strategy and industry structure variables affect market share and business profits similarly or dissimilarly across Western markets, that is, the U.S., U.K., Canada, and Western Europe. The results reveal that with few exceptions, the effects of competitive strategy and market structure variables generalize across these markets. The study findings provide insights into both the merits of standardizing the strategic resource mix across Western markets and the competitive strategy and market structure variables that are major explanators of business performance across Western markets.
A number of researchers in the marketing, management, and economics disciplines have expressed reservations regarding the validity and generalizability of the reported relationships between market share and profitability. Against this backdrop, the authors performed a meta-analysis on 276 market share-profitability findings from forty-eight studies to address whether market share and profitability are positively related and to examine the factors that moderate the magnitude of that relationship. The authors found that, on average, market share has a positive effect on business profitability. However, the magnitude of the market share-profitability relationship is moderated by model specification errors, sample characteristics, and measurement characteristics. The relationship is moderated the most (and, on average, the relationship could be artifactual) when firm-specific intangible factors are specified in the profit model or the estimate of the market share-profitability relationship is based on an analysis of non-PIMS businesses. The authors discuss the implications of these results for the evaluation and utilization of market share information by managers in reference to strategies that focus on building market share as a means for increasing profits.
The author describes a meta-analysis of econometric studies that estimated the elasticity of selective sales or market share to price. The literature review yielded 367 suitable price elasticities from about 220 different brands/markets. The results indicate that the price elasticity is significantly negative and, in absolute value, eight times larger than the advertising elasticity obtained from a prior meta-analysis. The omission of distribution or quality, the use of only cross-sectional data, and temporal aggregation lead to severe biases in the estimates of price elasticity. The elasticity also differs significantly over the brand life cycle, product categories, estimation methods, and countries.
Markets in which technology assumes a central role are becoming driving forces of the economy. The authors label these “technology-intensive” (TI) markets. Despite their importance, however, there is not a clear understanding of the features of a TI market. Using scientific know-how as the foundational concept, the authors explore the nuances of know-how creation, dissemination, and use to identify eight features of TI markets. With a series of reputable empirical propositions, they also study four marketing decisions, beginning with the most fundamental, that is, the vertical positioning decision (the firm's decision about what it sells). Product design decisions (both platform and modularity), transfer rights decisions (incorporating both price formats and licensing restrictions), and migration decisions (whether and how to move customers through an ongoing stream of technological innovations) round out the set.
High-technology markets represent unique problems for organizational buyers and, in turn, for their existing and potential vendors. These problems are due to high levels of uncertainty and the presence of switching costs tied to existing technologies or vendors. The authors focus on two aspects of buyer decision making in such markets: (1) whether buyers include new vendors at the consideration stage of the process and (2) whether they switch to new vendors at the choice stage. Using survey data from organizational buyers’ purchases of computer workstation equipment, the authors present a joint test of the antecedent conditions that influence the two processes. Based on a sequential logit model, they show that individual antecedents have different effects on consideration and switching behavior. The authors then discuss the implications of their study for the literatures on high-technology markets and organizational buyer behavior.
The author presents a framework for thinking about the impact of information and information technology on marketing. The focus is on the concept of “information” or “knowledge” as both an asset to be managed and a variable to be researched. After developing a particular operationalization of the value of information in marketing contexts, which can be used to describe firms in terms of their relative levels of “information intensity,” the author presents a series of propositions examining the consequences of increasing information intensity for some key components of firm strategy and organizational structure. The concepts discussed are illustrated with a description of the transaction-based information systems that are being implemented in a variety of firms in pursuit of competitive advantage.
Drawing on the marketing and management literatures, the authors identify strategic, tactical, and environmental factors that influence the commercial success of new products. They test the resulting conceptual model using data collected on 788 Japanese and 612 American new product development projects. The results provide insights into the antecedents and correlates of new product success and failure in both Japanese and U.S. firms, as well as into successful and unsuccessful management practices.
A critical element in the evolution of a fundamental body of knowledge in marketing, as well as for improved marketing practice, is the development of better measures of the variables with which marketers work. In this article an approach is outlined by which this goal can be achieved and portions of the approach are illustrated in terms of a job satisfaction measure.
One stream of research for order of entry effects focuses on the possibility that the order of entry exerts a direct impact on business performance. A second stream of research, the contingency perspective, debates the merits of whether the order of entry, in combination with other market strategy and marketplace variables, is what actually drives business performance. The findings from studies focusing on possible direct effects offer only mixed evidence in favor of a pioneering advantage. The contingency perspective, however, has not been subjected to systematic, empirical scrutiny. Against this backdrop, the authors conduct a meta-analysis of the pioneering-market share findings and an examination of the contingency perspective of order of entry effects. The findings from the meta-analysis reveal that, on average, earlier entry is associated with greater market share. The findings from the contingency analysis, however, offer evidence suggesting that the contingency perspective is the more valid perspective for capturing the association between order of entry and market share. The authors discuss the theoretical and managerial implications of their findings and several directions for further research.
Innovation is not simply accepting a given problem or task and solving it in a methodical, reductionist manner. Rather, innovation is an information and knowledgecreative process that is realized through the generation and definition of the problem or task to be solved. Research on the innovation process in Japanese organizations has shown that these information and knowledge-creating characteristics are, to a large degree, a product of what can be termed "information redundancy." Information redundancy refers to a condition where various types of "excess" or "supplemental" information are shared among a group in addition to the minimal amount of requisite information each individual, department, or organization holds as necessary to perform assigned, specialized functions.
An untested proposition in the normative strategic management literature is that strategists should make decisions based on accurate assessments of their external environments. Empirical organization theory literature holds the assumption that high levels of perceived uncertainty are detrimental to performance. Both literatures assume goal consensus to be important to effectiveness. This study investigated the relationship between top management perceptions of uncertainty, corporate goal structures, and industry volatility in explaining economic performance in 20 firms. Findings suggested that attempts to avoid true environmental uncertainty and to seek high levels of goal congruence may be dysfunctional. Strategic management is the province of organizational elites, and the way in which the members of these elites-senior executives-perceive and act upon their firms' external environments plays a large role in corporate conduct and performance. Strategic management and organization theory provide two academic perspectives on how this performance is achieved (Bourgeois & Astley, 1979), and each perspective is based upon a certain set of assumptions. The following study challenges some of those assumptions. The central tenet in strategic management is that a match between environmental conditions and organizational capabilities and resources is critical to performance, and that a strategist's job is to find or create this match. This theme pervades the two literatures that are antecedent to the field. First, traditional business policy literature advanced the notion that success is a function of the degree of strategic fit between environmental trends ("threats and opportunities") and an organization's distinctive competence ("strengths and weaknesses") (Andrews, 1971: 59-60). The more recent perspective adopted from industrial organization economics has a similar orientation, whereby industry structure constrains firm conduct, which determines economic performance (Hatten, Schendel, & Cooper, 1978). The organization theory literature has advanced a strikingly similar match or fit notion in the contingency theory paradigm. Empirical researchers like Burns and Stalker (1961) and Lawrence and Lorsch (1967) suggested that effectiveness derives from structuring an administrative arrangement appropriate to the nature of an organization's external environment. In essence,
High-technology markets represent unique problems for organizational buyers and, in turn, for their existing and potential vendors. These problems are due to high levels of uncertainty and the presence of switching costs tied to existing technologies or vendors. The authors focus on two aspects of buyer decision making in such markets: (1) whether buyers include new vendors at the consideration stage of the process and (2) whether they switch to new vendors at the choice stage. Using survey data from organizational buyers' purchases of computer workstation equipment, the authors present a joint test of the antecedent conditions that influence the two processes. Based on a sequential logit model, they show that individual antecedents have different effects on consideration and switching behavior. The authors then discuss the implications of their study for the literatures on high-technology markets and organizational buyer behavior.
An issue debated frequently in the international marketing literature centers on whether a business should pursue a strategy that is standardized across national markets or adapted to individual national markets. Of the two aspects relating to standardization of marketing strategy across national markets-(1) standardization of the pattern of resource allocation across marketing mix variables integral to a business's marketing strategy and (2) standardization of the strategy content with respect to individual marketing mix variables-the latter has been the subject of numerous conceptual articles. However, there is a relative dearth of empirical studies on both issues. To partially fill this void, this study addresses empirically the question of the standardization of the pattern of resource allocation among marketing mix variables across national markets. The question is addressed by examining whether competitive strategy and industry structure variables affect market share and business profits similarly or dissimilarly across Western markets, that is, the U. S., U. K., Canada, and Western Europe. The results reveal that with few exceptions, the effects of competitive strategy and market structure variables generalize across these markets. The study findings provide insights into both the merits of standardizing the strategic resource mix across Western markets and the competitive strategy and market structure variables that are major explanators of business performance across Western markets.
The authors attempt to assess what has been learned from econometric models about the effect of advertising on sales. Short-term and long-term advertising response as well as model fit are analyzed for 128 econometric models involving the impact of advertising on sales. The approach, a form of meta-analysis called "replication analysis," treats the studies as imperfect experimental replications and uses ANOVA to identify sources of systematic variation. For short-term advertising elasticities, systematic variability is found related to model specification, estimation, measurement, product type, and setting of study. For advertising carryover and model goodness of fit, the "quasi-experimental design" is so imperfect that a high degree of sharing of explained variance among explanatory factors makes it difficult to identify the impact of a particular factor. Because the studies mostly address mature products in the U.S., suggestions are made for research needs crucial to better understanding of how advertising affects sales.
A three-phase quantitative investigation of relationships involving salesperson job satisfaction was undertaken. First, the strength, valence, and consistency of pairwise relationships were assessed by means of a meta-analysis. Second, methodological characteristics coded as moderator variables were used to account for variability in study effects. Finally, weighted mean correlations resulting from the analysis of pairwise relationships were used to evaluate a causal model of antecedents and consequences of job satisfaction. In general, relationships involving job satisfaction were robust across study contexts. Systematic moderating effects of type of salesforce and operationalization of job satisfaction were found. Several summary conclusions about antecedents and consequences of salesperson job satisfaction are drawn from the analyses.
Drawing on the marketing and management literatures, the authors identify strategic, tactical, and environmental factor that influence the commercial success of new products. They test the resulting conceptual model using data collected on 788 Japanese and 612 American new product development projects. The results provide insights into the antecedents and correlates of new product success and failure in both Japanese and U.S. firms, as well as into successful and unsuccessful management practices.
One stream of research for order of entry effects focuses on the possibility that the order of entry exerts a direct impact on business performance. A second stream of research, the contingency perspective, debates the merits of whether the order of entry, in combination with other market strategy and marketplace variables, is what actually drives business performance. The findings from studies focusing on possible direct effects offer only mixed evidence in favor of a pioneering advantage. The contingency perspective, however, has not been subjected to systematic, empirical scrutiny. Against this backdrop, the authors conduct a meta-analysis of the pioneering-market share findings and an examination of the contingency perspective of order of entry effects. The findings from the meta-analysis reveal that, on average, earlier entry is associated with greater market share. The findings from the contingency analysis, however, offer evidence suggesting that the contingency perspective is the more valid perspective for capturing the association between order of entry and market share. The authors discuss the theoretical and managerial implications of their findings and several directions for further research.
A meta-analysis of 213 applications of diffusion models from 15 articles relates model parameters to the nature of the innovation, the country under study, model specification, and estimation procedure. The effect of use of the same data by several researchers is examined, as are weighting schemes for improving efficiency of the meta-analysis. A Bayesian scheme is used to combine results from the meta-analysis with new data for estimation of parameters in a new situation.
The author describes a meta-analysis of econometric studies that estimated the elasticity of selective sales or market share to price. The literature review yielded 367 suitable price elasticities from about 220 different brands/markets. The results indicate that the price elasticity is significantly negative and, in absolute value, eight times larger than the advertising elasticity obtained from a prior meta-analysis. The omission of distribution or quality, the use of only cross-sectional data, and temporal aggregation lead to severe biases in the estimates of price elasticity. The elasticity also differs significantly over the brand life cycle, product categories, estimation methods, and countries.
Markets in which technology assumes a central role are becoming driving forces of the economy. The authors la- bel these 'lechnology-intensive" (Tl) markets. Despite their importance, however, there is not a clear understand- ing of the features of a Tl market. Using scientific know-how as the foundational concept, the authors explore the nuances of know-how creation, dissemination, and use to identify eight features of Tl nnarkets. With a series of rep- utable empirical propositions, they also study four marketing decisions, beginning with the most fundamental, that is, the vertical positioning decision (the firm's decision about what it sells). Product design decisions (both platform and modularity), transfer rights decisions (incorporating both price formats and licensing restrictions), and migra- tion decisions (whether and how to move customers through an ongoing stream of technological innovations) round out the set.
A critical element in the evolution of a fundamental body of knowledge in marketing, as well as for improved marketing practice, is the development of better measures of the variables with which marketers work. In this article an approach is outlined by which this goal can be achieved and portions of the approach are illustrated in terms of a job satisfaction measure.
discuss threats that apply to [the validity of] meta-analyses that seek only to describe the degree of association between two variables / discuss threats to the inferences that the nature of the relationship is causal in the "manipulability" or "activity" theory sense / [discuss] generalization, beginning with those validity threats that apply when generalizing to particular target populations, constructs, categories, and so on / examine the threats pertinent to analyses of potential moderator variables from which conclusions are drawn about empirical robustness and causal contingency / examine threats that uniquely apply to research that seeks to promote extrapolation to unstudied populations through identifying more general causal mediating processes (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Examines how organizations identify and respond to conditions of stability and change and classifies responses as appropriate or dysfunctional. Using case study and historical survey approaches, the authors formulate conclusions about organizations themselves, individual organization members, and sub-organizational combinations of members. These three perspectives correspond to the organization's goals, individual career aspirations, and internal politicking. Technical progress and development of new organizational forms proceed in tandem; advancement in either field augurs movement in the other field. The inventor requires a suitable milieu and new technology enables further sophisticated forms of organization. Matching the rise of modern industrial concerns, technological research and development has been increasingly professionalized and financially supported by large corporations and government. Firms in (then) newly created industries, such as electronics, face a unique difficulty. Unlike counterparts in established fields, new firms in these industries must respond to rapidly changing market conditions without the benefit of a management experienced in the exigencies of that sector. The authors examine common new-industry responses to planning needs. These include the transfer of technical staff to the sales force and assignment of user needs research to research and development staff. Two important organizational approaches are identified. The mechanistic approach, suitable for stable industries, is marked by precise definition of member function and is highly hierarchical. The organic approach is more appropriate to industries undergoing change and is characterized by fluid definitions of function and interactions that are equally lateral as they are vertical. (CAR)
This paper examines the effect of organizational structures and processes on the reported proposals of innovation by middle and lower echelon officials in 44 Belgian bureaucracies. Technical and administrative innovations were examined. It was found that the determinants of proposal making differ, depending on the actor's level in the organization.
This article reports the results of a study in which cross-functional product development projects in six companies were analyzed. The study was conducted as part of an interdisciplinary research involving technological, organizational, and behavioral analysis. The article draws on an excerpt of the data collected on leadership styles among project managers as well as some data on organizational climate and team learning. Leadership style, especially the leaders' employee orientation, co-varied significantly with how members of the cross-functional teams perceived their work climate and possibilities for innovative learning. The results of the analyses point to the leader's behavior, rather than his power, as an important factor determining the work climate in successful cross-functional product development projects.
The commercial success or failure of a product doesn't rest solely on the whims of the marketplace. The myriad, often interdependent, strategic trade‐offs made throughout the product development process go a long way toward determining whether a product succeeds or fails. The key to success often rests in finding the right combination of product design and market choice decisions.
Toward that end, William E. Souder and X. Michael Song examine the relationship between product success and several product design and market choice strategies. In particular, they explore the possibility that the correct strategy combination differs depending on a firm's perception of market uncertainty, which they measure in terms of the respondents' perceived familiarity with the market for a product, perceived understanding of customer needs, and perceived capability to translate those needs into product performance specifications. Recognizing that the correct combination of strategic choices may also depend on firm size, industry, and culture, the study focuses on small U.S. suppliers of electronics components. Fortune 500 producers of electronics final products, and Japanese producers of electronics final products.
For the small U.S. firms in the study, an emphasis on performance superiority, technical superiority, or radically new products provides a recipe for failure under low market uncertainty. Even under high market uncertainty, these characteristics do not equate to success for the small U.S. firms in this study. The findings suggest that these firms should focus on design compatibility with a purchaser's installed base. The responses from Fortune 500 firms and Japanese companies indicate that under low market uncertainty these larger organizations should consider emphasizing compatibility and avoiding radical designs. For markets that the larger firms perceive to be highly uncertain, the results suggest that these companies should emphasize performance superiority, technical superiority, and radical designs.
The findings related to market choice strategies also support the notion that the correct combination of strategic decisions depends on firm size, culture, and the perceived level of market uncertainty. However, the guidelines presented in this study should not be construed as hard‐and‐fast rules for formulating product strategy. Instead, the results presented here will be helpful for challenging assumptions and guiding actions, as one element in the effort to shape an effective product strategy.
Both researchers and managers depend on the accuracy of managers' perceptions. Yet, few studies compare subjective with"objective" data, perhaps because it is very difficult to do well. These difficulties also muddy interpretations of results. Onone hand, studies suggest that managers' perceptions may be very inaccurate. On the other hand, the observed errors inmanagerial perceptions may arise from research methods instead of managers.Because perceptual data are so significant for both researchers and managers, researchers need to understand both thepotential contaminants of perceptual research and the determinants of perceptual errors and biases. This article reviewsstudies of the accuracies of managers' perceptions, points out hazards in such research, and suggests various ways toimprove studies of perceptions. The suggestions encompass improvements in gathering more valid subjective data, locatingmore appropriate "objective" data, finding appropriate respondents, and using statistical methods that provide accurate andreliable estimates with small samples.
A continuous flow of new products is the lifeblood for firms that hope to remain competitive in high-technology industries such as telecommunications. Faced with rapidly shrinking product life cycles, these firms must aggressively pursue the quest for more effective new product development (NPD). Ongoing success in such industries is dependent on choosing the right mix of new product strategy, organizational structure, and NPD processes.
Rather than considering the interrelationships among these success factors, however, most previous studies of NPD have examined these issues individually. This shortcoming is compounded by the fact that past studies of NPD have typically cut across industry lines. Gloria Barczak addresses these problems by proposing that a firm's choice of new product strategy, structure, and process are interrelated, as are the effects of those choices on NPD performance. Because these choices and their effects also may be dependent on the unique characteristics of the industry in which a firm competes, her study focuses exclusively on firms in a specific, high-technology industry, telecommunications.
The study finds that no single NPD strategy, in and of itself, stands out as being better than any other for the telecommunications industry. Instead, it appears that a company's focus should be on ensuring the best possible fit between its chosen NPD strategy and its corporate goals and capabilities.
In keeping with the current focus on cross-functional teams, the study results indicate that project teams and R&D teams are the most effective means for organizing NPD efforts in the telecommunications industry. Perhaps not surprisingly, R&D teams are more important for first-to-market firms than they are for fast followers and late entrants. An R&D team provides the technical skills necessary for playing the role of pioneer. Regardless of the firm's NPD strategy and structure, the presence of a product champion is an important element in the success of new product efforts.
In an era of rapid, technological advances, idea generation and screening efforts are essential to the success of telecommunications firms. To ensure that they do not fall into the trap of introducing technology for technology's sake, pioneering and fast-follower firms in particular must recognize the importance of staying in touch with their markets. Such market-oriented activities as customer prototype testing and concept definition and testing can help these firms ensure that their technological developments are in line with customer needs and requirements.
For many firms, emphasizing the importance of market orientation has taken on a mantra‐like quality. Mission statements and memos, policies, and procedures all highlight the importance of staying in touch with the customer. It is also widely assumed that the relationship between market orientation and new product performance depends on environmental conditions and product characteristics. To date, however, little empirical evidence has been presented to support the assumption that market orientation influences new product performance.
Kwaku Atuahene‐Gima addresses this research need in a study of 275 Australian firms. In addition to exploring the relationship between market orientation and new product development activities and performance, his study examines the effects of environmental conditions and product characteristics. Specifically, the study investigates whether the relationship between market orientation and new product performance depends on the degree of product newness to customers and the firm; the intensity of market competition and the hostility of the industry environment; and the stage of the product life cycle at which the new product was introduced.
The survey results provide strong support for the basic proposition that market orientation influences new product performance and development activities. The results show a strong positive relationship between market orientation and a new product's market performance. Market orientation is also shown to have a strong positive effect on proficiency of predevelopment activity, proficiency of launch activity, service quality, product advantage, marketing synergy, and teamwork.
Although market orientation is generally found to be an important factor in the success of new products, its influence varies depending on the type of new product—that is, radical versus incremental. Market orientation appears to have greater influence on new product performance when the product represents an incremental change to both the customers and the firm. However, this does not mean that a market‐oriented approach is unnecessary in the development of radically hew products.
Market orientation also has a greater effect when the perceived intensity of market competition and industry hostility are high, and during the early stage of the product life cycle. Because market competition and industry hostility typically intensify as the product life cycle progresses, these findings suggest that the effects of market orientation are pervasive. In other words, managers should not limit their expectations of market orientation to specific projects or specific stages of the development process and product life cycle.