Impacts of environmental turbulence on entrepreneurial orientation and new product success

2014 ◽  
Vol 17 (2) ◽  
pp. 229-249 ◽  
Author(s):  
Stanley Kam-Sing Wong
Keyword(s):  
New Product Development ◽  
Entrepreneurial Orientation ◽  
Manufacturing Industry ◽  
New Product ◽  
Policy Implications ◽  
Three Dimensions ◽  
Environmental Turbulence ◽  
New Product Success ◽  
Content Type ◽  
Product Success

Purpose – What leads to new product success (NPS) is a very complex issue. Although prior research widely demonstrates that entrepreneurial orientation (EO) is a determinant for NPS and environmental turbulence is a form of unpredictability which impacts on the success of a product, little research has been conducted to examine if and to what extent environmental turbulence induces the EO behaviors of a firm and how these behaviors contribute to NPS. The paper aims to discuss these issues. Design/methodology/approach – This study, which used data collected from 244 China-based electronics manufacturers, proposed and tested the theoretical relationships among the three constructs in the context of the electronics industry in China. Findings – Results revealed that the three dimensions of EO (innovativeness, proactiveness and risk-taking) drive NPS. Environmental turbulence strongly influenced all three dimensions of EO, though its influence on NPS was mixed as there existed a strong negative but insignificant direct association between the two constructs. Innovativeness, which was found to be most effective in driving NPS in the EO and NPS relationship, was relatively less responsive to environmental turbulence than proactiveness. The study confirmed the postulated role of environmental turbulence in inducing the EO behaviors of a firm, signaling environmental turbulence, if tactfully leveraged, can play a positive role in new product development (NPD). Research limitations/implications – The study is quantitative using data emanating from the electronics manufacturing industry in China, further empirical study would be useful to verify and complement the results in other industries and other countries. Originality/value – This study contributes to the scholarly inquiry of EO and NPD by exploring the influences of environmental turbulence and EO on NPS. As environmental turbulence induces EO and EO mediates the relationship between environmental turbulence and NPS, simultaneous consideration of these two constructs can lend useful insight into their joint impacts on NPD. Theoretical and managerial implications were examined and policy implications, especially the practicality of the findings to policymakers in China, were discussed.

The influence of leadership styles on new product development performance: the moderating effect of product innovativeness

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chonlatis Darawong
Keyword(s):  
Leadership Styles ◽  
New Product Development ◽  
Transactional Leadership ◽  
New Product ◽  
Product Innovativeness ◽  
New Product Success ◽  
Content Type ◽  
Team Members ◽  
Product Success ◽  
The Impact

PurposeThis article aims to examine the impact of leadership styles on new product development (NPD) and how product innovativeness of NPD projects moderates this impact. The results reveal the implications of different product innovativeness for leaders of NPD projects in achieving successful outcomes.Design/methodology/approachData were collected through a questionnaire survey of NPD team members who were involved in NPD. Participants were employees from different departments, including research and development (R&D), quality control (QC), production and marketing. These individuals worked in innovative manufacturing industries such as automotive and auto parts and electronics.FindingsResults show that transformational leadership has a significantly positive effect on new product success and NPD speed, whereas transactional leadership has a significantly negative effect on both outcomes. Furthermore, the positive impact of transformational leadership on new product success for high innovativeness is stronger than for low innovativeness. In addition, the negative impact of transactional leadership on both new product success and speed for high innovativeness is stronger than for low innovativeness.Research limitations/implicationsFirst, the sample size was fairly small because of limited access to middle-level management and low willingness to share information involving the firms' production. Second, since both transformational and transactional leaderships are multidimensional, each dimension may affect performance in different ways. Third, the respondents were mainly from a single department which could omit varying perspectives.Practical implicationsThe research findings provide recommendations on how different leadership styles support team members to effectively perform NPD tasks in either high or low innovativeness.Originality/valueThis study extends the theory of leadership by providing a holistic understanding of how leadership styles affect NPD performance. It also extends the understanding of how the impact of two different leadership styles on NPD performance is moderated by product innovativeness.

Perceived environmental turbulence, strategic orientations and new product success

2015 ◽  
Vol 12 (1) ◽  
pp. 43-54 ◽  
Author(s):  
Jing Zhang ◽  
Yanxin Jiang ◽  
Miao Zhu
Keyword(s):  
Product Innovation ◽  
New Product ◽  
Innovation Performance ◽  
Environmental Turbulence ◽  
Equation Modeling ◽  
Company Size ◽  
New Product Success ◽  
Content Type ◽  
Product Success ◽  
Strategic Orientations

Purpose – The purpose of this paper is to examine the differences of relationship among perceived environmental turbulence, strategic orientations and new product success in export market by company size. Design/methodology/approach – A questionnaire survey was conducted among 281 small and medium-sized and 222 large manufacturing exporters in mainland China. Research hypotheses were examined by structural equation modeling technique. Findings – The research results show that: market orientation (MO) and innovation orientation (IO) are not significantly different between large exporters and SMEs, while new product performance of SMEs is significantly less satisfactory; for large exporters, perceived environmental uncertainties in terms of technology and customer demands are critical driving factors of strategic orientations, while environmental dynamics in terms of technology and competition have significant impacts upon strategic orientations among SMEs; while MO plays a stronger effect in product innovation performance for large exporters, IO has equally important impact upon new product success across SMEs and large exporters. Originality/value – The authors extend the established theory about industry environment, strategic orientations and product innovation performance from companies in developed countries and domestic market to firms from developing countries who are operating in export markets. Furthermore, it is first kind of study that comparatively examines the relationship among environmental turbulence, strategic orientations and product innovation performance by company size.

Trust, integrated information technology and new product success

2017 ◽  
Vol 20 (3) ◽  
pp. 406-427 ◽  
Author(s):  
John E. Ettlie ◽  
Christopher Tucci ◽  
Peter T. Gianiodis
Keyword(s):  
Information Technology ◽  
New Product Development ◽  
New Product ◽  
Manufacturing Firms ◽  
High Tech ◽  
Barriers To Success ◽  
New Product Success ◽  
Content Type ◽  
Product Success ◽  
Strategic Direction

Purpose The purpose of this paper is to investigate the combined roles via trust relationships of the two technology cores of the firm: information technology (IT) and R&D and their impact on new product success. Design/methodology/approach A model was tested whereby trust and the integrated IT strategy account for a significant amount of the variance in a broad range of new product development (NPD) outcomes for a survey sample of 223 manufacturing firms. Respondents said design practices and quality methods like Six Sigma accounted for a total of over 25 percent of the reports of the most helpful approaches in promoting effective NPD. At the same time their biggest challenges were having a clear strategic direction within which to operate and resolving cost and resource issues which accounted for over a third (34 percent) of barriers to success. Findings Respondents reported that a total of over 25 percent of the reports of the most helpful approaches in promoting effective included these quality methods. At the same time their biggest challenges were having a clear strategic direction within which to operate and resolving cost and resource issues which accounted for over a third (34 percent) of barriers to success. High-tech firms were less likely to report integrated IT strategies, but this tended to be counterbalanced by high levels of trust in the IT function and adoption of organizational innovations for execution of strategic intent. Implications for future research and practice are discussed. Research limitations/implications Survey methods produce broad results with low response rates in most studies involving R&D and NPD, and this study is no exception. Practical implications With the challenge of strategy alignment reported by many of these firms, it seems clear that the top management team cannot afford to leave NPD challenges to engineering teams and NPD programs without guidance and general vision. Social implications NPD has become the staple of most manufacturing firms as a way of meeting and beating the competition worldwide. However, trust between functional areas often starts before people are even employed and should begin in training and educational programs. Originality/value Designing NPD programs is at the heart of many firms’ competitive strategies and the fast learning companies are the winners. Very little is known about the trust relationship between IT and R&D and their combined effects on new product success which we have found to be significant and unexpected in their impacts.

Recipes for new product success: the interplay between orientations and environmental turbulence

2020 ◽  
Vol 35 (8) ◽  
pp. 1345-1357
Author(s):  
Joanne Ho ◽  
Carolin Plewa
Keyword(s):  
Qualitative Comparative Analysis ◽  
New Product ◽  
Environmental Turbulence ◽  
High Tech ◽  
New Product Success ◽  
Content Type ◽  
Product Success ◽  
Configuration Theory ◽  
Turbulent Environments ◽  
Strategic Orientations

Purpose Prior studies suggest that strategic orientations not only impact innovation outcomes individually but also by interacting with each other and with environmental factors. Yet, inconsistent results in the literature remain, likely due to the common use of regression analysis and related limitations in capturing the complex reality of interdependent effects. This paper aims to overcome this challenge. Design/methodology/approach Drawing on configuration theory, this research uses fuzzy set qualitative comparative analysis to investigate configurations of customer, competitor and technology orientations, interfunctional coordination (IC) and environmental turbulence leading to new product success (NP) among high-tech manufacturing business-to-business firms. Findings Findings show seven configurations of strategic orientations as determining NP, including four configurations specific to firms operating in turbulent environments. Originality/value This study offers important theoretical, empirical and managerial contributions. In particular, it is the first to reveal configurations of strategic orientations that determine NP. It also advances knowledge by delineating those configurations that are most suited to firms operating in turbulent environments. Finally, findings demonstrate the interchangeable nature of facets traditionally joined as a single market orientation construct – customer and competitor orientation as well as IC.

scholarly journals A multi-dimensional approach for managing open innovation in NPD

2017 ◽  
Vol 37 (10) ◽  
pp. 1366-1385 ◽  
Author(s):  
Hanna Bahemia ◽  
Brian Squire ◽  
Paul Cousins
Keyword(s):  
Product Development ◽  
Competitive Advantage ◽  
New Product Development ◽  
New Product ◽  
Three Dimensions ◽  
Longitudinal Impact ◽  
Product Innovativeness ◽  
Content Type ◽  
The Impact ◽  
Positive Effect

Purpose This paper explores openness within new product development (NPD) projects. The purpose of this paper is to examine the impact of breadth, depth and partner newness on product innovativeness and product competitive advantage. The authors also seek to examine the contingent effects of the appropriability regime. The authors make suggestions to academics and practitioners based on the findings. Design/methodology/approach The authors use a structured survey instrument producing an empirical analysis of 205 NPD projects in the manufacturing sector in the UK. The authors use an ordinary least squares regression model to test hypothesised relationships between openness (breadth, depth and partner newness), product innovativeness, product competitive advantage and the appropriability regime. Findings The authors find that each of the three dimensions of openness, depth, breadth and partner newness, have a significant but differing impact on product innovativeness. Specifically, the study indicates that breadth has a positive effect but only in the presence of a strong appropriability regime, partner newness has a direct positive effect, and depth a direct negative effect. The authors also find that product innovativeness has a positive impact on product competitive advantage. Research limitations/implications Further research should focus on replicating the findings in other countries, search for further moderating factors, such as the stage of the NPD process, and analyse the longitudinal impact of openness within NPD projects. Practical implications Organisations are encouraging managers to be more open in their approach to NPD. The authors’ findings suggest that managers need to think about the three dimensions of openness, breadth, depth and partner newness. Their engagement with each of these dimensions depends on the desired outcomes of the innovation project and the strength of patents. Originality/value The research extends the extant supplier involvement in new product development literature to examine the effect of up to 11 types of external actor in NPD projects. The authors test a new multi-dimensional measurement scale for the openness construct. The authors show that each dimension has a different relationship with product innovativeness.

The effects of social capital on knowledge heterogeneity

2019 ◽  
Vol 57 (5) ◽  
pp. 1237-1253 ◽  
Author(s):  
Fu-Sheng Tsai ◽  
I-Chieh Hsu
Keyword(s):  
Social Capital ◽  
New Product Development ◽  
New Product ◽  
Shared Vision ◽  
Three Dimensions ◽  
Content Type ◽  
Negative Impacts ◽  
The Relationship ◽  
Epistemological Dimension

Purpose The purpose of this paper is to examine the influences of social capital on knowledge heterogeneity in order to advance the understanding of the effects and to reconcile existing inconsistent findings. Design/methodology/approach Survey data collected from 105 new product development (NPD) projects were analyzed with regression-based methods. Findings The results indicated that trust, centralization and shared vision as the three social capital dimensions generally have negative impacts on the domain and presentation dimensions of knowledge heterogeneity. However, the three dimensions of social capital do not exhibit consistent influences on the tacitness heterogeneity (i.e. an epistemological dimension of knowledge heterogeneity). Research limitations/implications More research is needed to explore the role of social capital dimensions in developing a range of knowledge attributes of NPD teams, among which knowledge heterogeneity is one. The various dimensions of knowledge an NPD team possesses should have performance implications and deserve future investigation. Originality/value The study is one of the first documented attempts to demonstrate contingencies in the relationship between social capital and knowledge heterogeneity. The effect of social capital on knowledge heterogeneity should be understood at the level of dimensions of the two respective constructs.

How organizational structure and strategic alignment influence new product success

2020 ◽  
Vol 58 (1) ◽  
pp. 182-200
Author(s):  
Yung-Chang Hsiao ◽  
Ming-Ho Wu
Keyword(s):  
New Product Development ◽  
Information Service ◽  
New Product ◽  
Product Performance ◽  
Curvilinear Relationship ◽  
Content Type ◽  
Product Success ◽  
New Product Performance ◽  
The Relationship

Purpose The purpose of this paper is to review and re-examine the role of the organization-level determinants from the perspectives of competence-based views. Design/methodology/approach Regression analysis was used to test the hypotheses in a sample of 80 cases drawn from a population of the top 5,000 Taiwanese firms listed in the yearbook published by the China Credit Information Service Incorporation. Findings The empirical results indicate that formalization is positively related to new product performance while decentralization has an inverse U-shaped curvilinear effect on new product performance. Furthermore, the regression findings also indicate that market-oriented strategy negatively moderates the relationship between formalization and new product performance, while technology-oriented strategy positively moderates the curvilinear relationship between decentralization and new product performance. Originality/value Extant literatures have paid attention to investigating the determinants to the performance of the new product development, but some of the results, such as in the organizational levels, are confusing and mixed. Contrary to previous works, the purpose of this paper is to review and re-examine the role of the organization levels determinants from the perspectives of competence-based view.

The Determinants of Japanese New Product Successes

1997 ◽  
Vol 34 (1) ◽  
pp. 64-76 ◽  
Author(s):  
X. Michael Song ◽  
Mark E. Parry
Keyword(s):  
Best Practices ◽  
Product Development ◽  
New Product Development ◽  
Functional Integration ◽  
New Product ◽  
New Product Success ◽  
Product Success ◽  
The Past ◽  
Japanese Firms ◽  
Using Data

The authors report the results from a three-year study of new product development practices in Japanese firms. They develop a causal model of factors correlated with new product success. They test the model using data collected on 788 new products developed and commercialized by Japanese firms in the past four years. The “best practices” identified in this study suggest that Japanese new product success is positively influenced by the level of cross-functional integration and information sharing, the firm's marketing and technical resources and skills, the proficiency of the new product development activities undertaken, and the nature of market conditions. Cross-functional integration and product competitive advantage are two key determinants of new product success. The authors also discuss managerial and research implications.

Decision making in creating the world's first smartphone

2011 ◽  
Vol 1 (4) ◽  
pp. 1-10
Author(s):  
Virginia Cha
Keyword(s):  
Decision Making ◽  
Product Development ◽  
Technology Management ◽  
New Product Development ◽  
Manufacturing Industry ◽  
New Product ◽  
Future Market ◽  
Market Uncertainty ◽  
Content Type ◽  
New Generation

TitleDecision making in creating the world's first smartphoneSubject areaEntrepreneurship, Technology management and new product development.Study level/applicabilityThis class is useable for an EMBA or MBA audience, especially for modules relating to entrepreneurship, technology management and new product development.Case overviewMr Khaw Kheng Joo was a pioneer in Singapore's high‐technology manufacturing industry. In the mid‐1990s, Khaw was given the difficult task of establishing a presence for Hewlett‐Packard (HP) in the handheld Personal Digital Assistant (PDA) market. However, he believed that the PDA was not the game‐changing technology for consumers.Using his knowledge of the Bell Curve and years of entrepreneurial experience, Khaw sought to combine PDA functionalities with the Global System for Mobile Communication (GSM) technology, effectively creating a new generation of mobile device fondly known today as the “smartphone”.The journey towards the finished product was met with several obstacles and barriers. Many colleagues were uncertain of the future market and had difficulty agreeing on which features to focus on. However, through his determination, expertise and decision making in uncertainty, Khaw guided his team to eventually launch the impressive HP Jornada 928, the world's first smartphone, and heralded a new generation of mobile devices.Expected learning outcomesThis case is designed to be useable in teaching three key knowledge disciplines:Decision‐making biases and heuristics in entrepreneurs and innovators. Technology diffusion of new technology. Managing market uncertainty.Supplementary materialsTeaching notes.

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