New product launch actions and firm performance

2018 ◽  
Vol 12 (1) ◽  
pp. 79-105 ◽  
Author(s):  
Yang Liu ◽  
Peng Cheng ◽  
Dingtao Zhao
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
New Product ◽  
Superior Performance ◽  
Product Launch ◽  
Firm Reputation ◽  
Content Type ◽  
New Product Launch ◽  
Two Factors ◽  
Fixed Effects Regression

Purpose This paper aims to examine the effect of new product launch actions and firm reputation on firm performance in the Chinese auto industry. Design/methodology/approach This analysis adopts empirical data from 66 auto firms in China’s auto market from 2007 to 2012 to explore how new product launch actions undertaken by a firm can contribute to achieving superior performance and to investigate the relationships between new product launch actions and firm performance. Moreover, how firm reputation interacts with new product launch actions to affect firm performance is also investigated. Fixed effects regression model following the Hausman specification test was used to quantitatively examine the relationship. Findings It was concluded that the focal firm’s new product launch actions, including new product launch breadth, complexity and heterogeneity of its new repertoire of product launch actions, and firm reputation can impact its performance. Firm reputation can impact the signaling process and the capability of firms to enhance their performance via new product launch movements. Originality/value This research contributes to new product launch research by providing a more comprehensive view of competitive dynamic actions by which a firm’s performance is strengthened by examining the effects of two factors that affect performance. These factors are as follows: the characteristics in terms of breadth, complexity, and heterogeneity of new product launch actions undertaken by a firm and the characteristic of firm reputation.

Board demographic diversity, firm performance and strategic change

2014 ◽  
Vol 37 (12) ◽  
pp. 1110-1136 ◽  
Author(s):  
Daniel Kipkirong Tarus ◽  
Federico Aime
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Strategic Change ◽  
Secondary Data ◽  
Developed Countries ◽  
Outcome Variable ◽  
Demographic Diversity ◽  
Content Type ◽  
Fixed Effects Regression ◽  
High Level

Purpose – The purpose of this study is to examine the effect of boards’ demographic diversity on firms’ strategic change and the interaction effect of firm performance. Design/methodology/approach – This paper used secondary data derived from publicly listed firms in Kenya during 2002-2010 and analyzed the data using fixed effects regression model to test the effect of board demographic and strategic change, while moderated regression analysis was used to test the moderating effect of firm performance. Findings – The results partially supported board demographic diversity–strategic change hypothesis. In particular, results indicate that age diversity produces less strategic change, while functional diversity is associated with greater levels of strategic change. The moderated regression results do not support our general logic that high firm performance enhances board demographic diversity–strategic change relationship. In effect, the results reveal that at high level of firm performance, board demographic diversity produces less strategic change. Originality/value – Despite few studies that have examined board demographic diversity and firm performance, this paper introduces strategic change as an outcome variable. This paper also explores the moderating role of firm performance in board demographic diversity–strategic change relationship, and finally, the study uses Kenyan dataset which in itself is unique because most governance and strategy research uses data from developed countries.

Relevance of salespeople profiles: an analysis in an emerging economy

2019 ◽  
Vol 38 (4) ◽  
pp. 433-448
Author(s):  
Luis Arditto ◽  
Jesus Cambra-Fierro ◽  
Ana Olavarría ◽  
Rosario Vazquez-Carrasco
Keyword(s):  
New Product ◽  
Emerging Economy ◽  
Sales Force ◽  
Structural Equations ◽  
Product Launch ◽  
General Interest ◽  
Retail Sector ◽  
Content Type ◽  
New Product Launch ◽  
The Impact

Purpose The purpose of this paper is to analyze the impact of the salespeople profile (i.e., effort, commitment and creativity) – and its degree of market orientation (MO) – on the success of new product launch and sales outcomes. An emerging economy context is taken as a reference. Design/methodology/approach A structural equations model is proposed. The data are based on a sample of retail sector sales managers in Peru. Findings The results indicate that salespeople effort, creativity and degree of MO influence overall sales performance. Salespeople commitment, however, does not have a significant impact. These antecedents are helpful when attempting to understand both the potential success of a new product and sales outcomes. Originality/value There is no evidence to date of studies that simultaneously assess the impact of seller profiles and degree of MO on new product launch success and sales outcomes. This paper breaks new ground in analyzing this phenomenon in the context of an emerging economy. The findings are of general interest both for sales force management and for companies interested in familiarizing themselves with the peculiarities of emerging economies and the potential need to adapt policies to these specific realities.

Is the MD&A of US REITs informative? A textual sentiment study

2020 ◽  
Vol 38 (3) ◽  
pp. 181-201
Author(s):  
Marina Koelbl
Keyword(s):  
Firm Performance ◽  
Real Estate ◽  
Fixed Effects ◽  
Textual Analysis ◽  
Real Estate Industry ◽  
Content Type ◽  
The Real Estate ◽  
Domain Specific ◽  
Panel Fixed Effects ◽  
Fixed Effects Regression

PurposeThis study examines whether language disclosed in the Management Discussion and Analysis (MD&A) of US Real Estate Investment Trusts (REITs) provides signals regarding future firm performance and thus generates a market response.Design/methodology/approachThis research conducts textual analysis on a sample of approximately 6,500 MD&As of US REITs filed by the SEC between 2003 and 2018. Specifically, the Loughran and Mcdonald (2011) financial dictionary, and a custom dictionary for the real estate industry created by Ruscheinsky et al. (2018), are employed to determine the inherent sentiment, that is, the level of pessimistic or optimistic language for each filing. Thereafter, a panel fixed-effects regression enables investigating the relationship between sentiment and future firm performance, as well as the markets’ reaction.FindingsThe empirical results suggest that higher levels of pessimistic (optimistic) language in the MD&A predict lower (higher) future firm performance. Hereby, the use of a domain-specific real estate dictionary, namely that developed by Ruscheinsky et al. (2018) leads to superior results. Corresponding to the notion that the human psyche is affected more strongly by negative than positive news (Rozin and Royzman, 2001), the market responds solely to pessimistic language in the MD&A.Practical implicationsThe results suggest that the market can benefit from textual analysis, as investigating the language in the MD&A reduces information asymmetries between US REIT managers and investors.Originality/valueThis is the first study to analyze exclusively US REITs, whether language in the MD&A is predictive of future firm performance and whether the market responds to textual sentiment.

Does R&D create additional business value through IT?

2017 ◽  
Vol 11 (2) ◽  
pp. 194-208 ◽  
Author(s):  
Yu Wang ◽  
Tie-nan Wang ◽  
Xin Li
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Business Value ◽  
It Investment ◽  
Content Type ◽  
Chinese Business ◽  
Fixed Effects Regression ◽  
The Impact ◽  
D Investment ◽  
It Payoff

Purpose R&D indicates absorptive capacity, which may affect IT payoff. The purpose of this paper is to examine how R&D investment affects the relation between IT investment and firm performance and under what circumstances R&D intensity is more beneficial to IT returns. Such study has been lacking in R&D research and IT payoff literature. Design/methodology/approach A conceptual model for linking IT investment, R&D investment, environmental dynamism and firm performance was developed and tested by data collected from Chinese listed firms from 2007 to 2013, using fixed effects regression model. Findings The results show positive moderating effects of firm R&D investment and government R&D subsidies on the relation between IT investment and firm performance. Furthermore, the impact of firm R&D investment on IT payoff is stronger for firms in more dynamic environments. The findings suggest that R&D investment creates additional business value through interactions with IT, and complementarities between R&D and IT, as manifested in their interaction effect on firm performance vary across industry sectors. Research limitations/implications This paper indicates the importance of complementarities between R&D and IT, which should prove helpful to researchers and practitioners engaged in Chinese business. Originality/value This paper presents one of the first attempts at examining the moderating effect of R&D investment on the relation between IT investment and firm performance. Especially this study helps to understand under what circumstances R&D investment is more or less likely to be beneficial to IT returns.

An empirical investigation on the impact of capital structure on firm performance: evidence from Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Ayaz ◽  
Shafie Mohamed Zabri ◽  
Kamilah Ahmad
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Optimal Level ◽  
Agency Cost ◽  
Superior Performance ◽  
Initial Attempt ◽  
Content Type ◽  
Leverage Ratio ◽  
The Impact

PurposeThe purpose of this study is to examine the relationships between leverage and firm’s performance in Malaysia by framing the relationship under the tradeoff theory and agency cost theory.Design/methodology/approachBased on insights drawn from the existing literature, we opted for fixed effects and system two-steps GMM models to establish the hypothesized relationship between leverage and performance. We analyzed 528 nonfinancial firms listed on the Bursa Malaysia Stock exchange for the period of 12 years (2005–2016).FindingsThe outcomes show that the leverage ratio improves the firm performance, consistent with leverage serving as an effective strategy in constraining managers from building their personal empire, revealing a proportionately greater benefit for Malaysian firms than the cost to debt financing. The authors also find that a positive relationship between leverage and firm performance switch to the negative when the level of leverage reaches beyond the optimal level. Consequently, switching from positive to negative indicates that debt has a twofold (nonlinear) impact on firm performance.Practical implicationsOur research provides several implications to potential stakeholders. For investors, firms having lower leverage ratios could achieve superior performance, thus investing in corporations pursuing higher performance. Managers should therefore strive for achieving higher performance to meet the needs of investors and shareholders. From the researcher’s perspective, our research suggests the need to go away from the searching linear association between leverage and firm performance and the relevance of nonlinear correlation. Moreover, our research can help managers to understand how their lender relates to their debt to assets ratios. Thus, they can design an optimal level of leverage that not only improves the firm’s performance but also reduce the associated costs.Originality/valueTo the best of the author’s knowledge, this is the initial attempt in the context of Malaysia that documents evidence indicating that the lower leverage is likely to create value for shareholders while a higher debt ratio reduces firm profitability.

scholarly journals Leveraging social network sites for new product launch

2017 ◽  
Vol 117 (10) ◽  
pp. 2400-2416 ◽  
Author(s):  
Deborah Lynn Roberts ◽  
Marina Candi ◽  
Mathew Hughes
Keyword(s):  
Social Network ◽  
Online Survey ◽  
Word Of Mouth ◽  
Social Network Sites ◽  
New Product ◽  
Product Launch ◽  
Societal Implications ◽  
Media Campaigns ◽  
Content Type ◽  
New Product Launch

Purpose The ability to make use of social network sites (SNSs) to promote new products and facilitate positive word of mouth around new product launch (NPL) presents an important opportunity. However, the mechanisms and motivations of SNS users are not well understood and businesses frequently fail to realise these opportunities. The purpose of this paper is to examine some of the forces that motivate people to spend time on SNS sites and how these motivations are related with people’s propensity to engage in behaviours that can be beneficial for NPL. Design/methodology/approach Hypotheses are tested using data collected using an online survey from a broad sample of SNS users worldwide. Findings People who spend time on SNSs to be challenged, to escape, or to connect with others are more likely than other users to pay attention to advertisements on SNS. Users that spend time on SNSs in the pursuit of information, to be challenged, or to connect with others are more likely than other users to provide word of mouth reviews and recommendations about products. Research limitations/implications The authors make an empirical contribution to knowledge by providing evidence about the categories of user motivations for engagement with SNSs that might be related with their contributions to NPL activities, namely, paying attention to advertisements and providing WOM recommendations. Practical implications By understanding what motivates SNS users, firms can identify potentially valuable users and develop a more strategic and targeted approach to NPL. This can help firms turn disappointing social media campaigns into more successful ones. Social implications Whilst the growth in usage of SNS has important implications for business and NPL there are also wider societal implications. Arguably, even before the widespread adoption of SNSs, society has been in a state of flux and transition as people sought to liberate themselves from the norms and social codes of previous generations. We have witnessed a rise of individualism, associated with values such as personal freedom and where people actively construct their own identities. Somewhat ironically, individualism has motivated people to seek alternative social activities and form communities, such as those on SNSs where they can fulfil their need for connection and belonging. SNSs appear to have accelerated this trend. Originality/value This study provides new insights about the use of SNSs for NPL and what motivates users to engage in behaviours that are beneficial to NPL.

Cost of quality consideration following product launch in a present worth assessment

2016 ◽  
Vol 33 (3) ◽  
pp. 399-413 ◽  
Author(s):  
Jeff Guinot ◽  
Dustin Evans ◽  
M. Affan Badar
Keyword(s):  
New Product ◽  
Cash Flows ◽  
Product Launch ◽  
Potential Cost ◽  
Content Type ◽  
Cost Of Quality ◽  
New Product Launch ◽  
Present Worth ◽  
Automobile Manufacturer ◽  
The Impact

Purpose – The purpose of this paper is to investigate the impact of costs of quality on the present worth (PW) of a new product launch at a North American automobile manufacturer. Design/methodology/approach – The paper is based on the examination of various cash flows associated with a new product launch within an automobile manufacturer. Standard cash flows and a PW analysis were examined and compared to non-standard cash flows which take into consideration post-launch cost of quality (CoQ). A sensitivity analysis was used to determine if any CoQ factors affected the integrity of the product launch. Findings – The paper concludes that there is an impact on the PW of a program when CoQ is considered as a cash flow element. CoQ should be considered in a product launch PW analysis preceding any commitment to invest. Research limitations/implications – This study suggests that, given data on the costs that will accrue assuming standard quality concerns following product launch, and the occurrence of special cause issues, the business case can establish a better estimate of the costs a program will face under varying levels of post-launch quality. An understanding of the potential cost consequences of quality issues can shape the understanding of the risks in a planned project. Practical implications – The paper shows that CoQ can have a significant impact on a PW analysis. CoQ concerns should be considered during pre-launch planning of a new product. Originality/value – The paper satisfies the need to study when a manufacturer considers investment in the launch of a new product with CoQ concerns.

scholarly journals The impact of information integration on purchase order finance and new product launch: a case study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Min Zhang ◽  
Qiuping Huang ◽  
Xiande Zhao ◽  
Lijun Ma
Keyword(s):  
Information System ◽  
Supply Chain ◽  
Social Interaction ◽  
Information Integration ◽  
System Integration ◽  
New Product ◽  
Product Launch ◽  
Content Type ◽  
New Product Launch ◽  
Information System Integration

PurposeIn this study, we examine the implementation of purchase order finance (POF) which is an innovative supply chain finance (SCF) solution by an innovative SCF lender (i.e. supply chain service provider (SCSP)). The effect of information integration between the SCSP (lender) and product designers (borrowers) on the lender's POF decisions and the borrowers' new product launch is investigated.Design/methodology/approachWe conduct a case study in the Chinese smartphone industry. A mixed methods design is used, and data are collected from both the supply chain service provider (SCSP) and product designers. We first conduct a qualitative study. Hypotheses are developed concerning the relationships between information integration, in terms of social interaction and information system integration, POF and new product launch. We then conduct a quantitative study. The multilevel structural equation modelling method is used to test the hypotheses.FindingsWe find that information system integration is positively associated with POF but has no significant effect on new product launch. Social interaction is negatively associated with POF but positively associated with new product launch. POF is positively associated with new product launch.Originality/valueThis study contributes to the literature by empirically examining the implementation of POF from both the lender's and borrower's perspectives. We find that information system integration and social interaction have different effects on POF and new product launch. The results thus provide insights into how a lender makes POF decisions and reveal the benefits of POF for borrowers.

The role and impact of firm’s strategic orientations on launch performance: significance of relationship orientation

2016 ◽  
Vol 31 (5) ◽  
pp. 625-639 ◽  
Author(s):  
Minna Matikainen ◽  
Harri Terho ◽  
Petri Parvinen ◽  
Anne Juppo
Keyword(s):  
New Product ◽  
Product Launch ◽  
Cross Sectional ◽  
Content Type ◽  
Strategic Orientations ◽  
New Product Launch ◽  
Relationship Orientation ◽  
Performance Effects ◽  
Mediating Mechanisms

Purpose This study examines the role and relative impact of market orientation, product orientation and relationship orientation on new product launch performance, investigating product advantage and market-based assets as alternative mediating mechanisms, which link these strategic orientations to launch performance. Design/methodology/approach Survey data from the pharmaceutical industry are used to test hypotheses in the research model using partial least squares modeling. Findings Findings show that while each examined strategic orientation relates positively to launch performance, their performance effects and related mechanisms vary significantly. Results demonstrate a firm’s relationship orientation is the strongest predictor of launch performance, and accumulated market-based assets represent an alternative relational mediator besides product advantage linking firms’ orientations and launch performance. Research limitations/implications The empirical study is based on cross-sectional data collected in one specific industry sector. The authors encourage researchers to confirm the key findings in different industry and other contextual settings. Practical implications New product launch can be effectively managed as a relational activity. Firms benefit from paying explicit attention to strategic orientations and relationships. Especially, top management should foster a relationship-oriented organizational culture, develop relational competences and fully use the firm’s accumulated market-based assets for increased launch performance. Originality/value The study extends knowledge on the role of strategic orientations in launch performance by highlighting the significance of relationship orientations and providing novel knowledge on the key mediating mechanisms between strategic orientations and launch performance.

The fall of smart organic fertilizer: can it be revived?

2015 ◽  
Vol 5 (6) ◽  
pp. 1-9
Author(s):  
Rozhan Abu Dardak ◽  
Farzana Quoquab
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Organic Fertilizer ◽  
New Product ◽  
Product Launch ◽  
Strategic Marketing ◽  
Research Centre ◽  
Content Type ◽  
New Product Launch ◽  
The Government

Subject area Entrepreneurship, Strategic Marketing, Innovation, New Product Development (NPD). Study level/applicability This case is suitable to be used in advanced undergraduate and MBA/MSc. Case overview This case illustrates the challenges related to designing and launching an innovative product in the market. It revolves around the issues pertaining to smart organic fertilizer's (SOF) pre- and post-launch experiences. Haji Sani Kimi, a Senior Research Officer of the Strategic Research Centre at MARDI, had developed a zeolite-based organic fertilizer which he believed to be the first of its kind in Malaysia. He had taken five years to complete his research in developing SOF. Seeing its potential benefits for the land and farmers, the then Director General of MARDI asked Sani to speed up the process of technology transfer to be the first to launch the product in the market. In 2005, MARDI established a five-year agreement with Hicotech Sendirian Berhad to license its intellectual property rights (IPR). Adnan, a successful automobile business entrepreneur, ventured into the organic fertilizer business, as this product was in high demand and extensively used by paddy farmers in Malaysia and was subsidized by the government. However, Hicotech failed to get government contract to supply organic fertilizer under the government subsidy program. As such, it had to compete in the open market which was dominated by already-established Chinese entrepreneurs. At the beginning, SOF was doing well in the market, but, during 2007, Hicotech experienced great financial loss due to its mismanagement of collecting payment from its customers. Hicotech tried to work in partnership with ABH Mega Sendirian Berhad to overcome its financial difficulties. However, due to some disagreements, the collaboration was terminated within a short period of time. From 2005 to the end of 2009, Hicotech was not able to pay any royalties to MARDI and the license of Hicotech was to expire in February 2010. Haji Sani was trying to get a solution to revive SOF in the market. Moreover, he was confused whether to renew the license of SOF IPR with Hicotech or to search for another company. Expected learning outcomes Using this case, students can learn how a small- and/or medium-scale companies can strategize their new product launch. Based on the given industry scenario, students can realize the potential challenges that are related to launching a new product. Furthermore, this case demonstrates that producing a high-quality product is not enough to succeed in the market; the right strategy also plays an important role in making it successful. Last, it can be also learned that proper managerial control and financial support are two important factors that contributes in any business success. Overall, strategic marketing/management students will learn the importance of adopting proper strategy, while the students who are undertaking the new product development course benefit by seeing the practical situation of a new product launch, its rise and its fall. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

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