Impacts of strategic orientations on new product development and firm performances

2019 ◽  
Vol 22 (2) ◽  
pp. 257-280
Author(s):  
Wassim J. Aloulou
Keyword(s):  
Product Development ◽  
New Product Development ◽  
New Product ◽  
Equation Modeling ◽  
Future Research ◽  
Business Practices ◽  
Industrial Firms ◽  
Content Type ◽  
Strategic Orientations ◽  
Industrial Sectors

PurposeThe purpose of this paper is to investigate the relationships between strategic orientations as well as the role played by them to impact the performance of industrial firms.Design/methodology/approachThe paper formulates some hypotheses from the literature review. These hypotheses are tested using structural equation modeling with data collected from 292 randomly selected firms operating in several industrial sectors in the Kingdom of Saudi Arabia.FindingsThe findings of this study showed the importance of these strategic orientations in enhancing the performance of Saudi industrial firms and emphasized the mediating role of entrepreneurial orientation in the relationships of market orientation and technology orientation to new product development performance and firm performance.Research limitations/implicationsThe study discusses the findings and advances certain limitations and research and managerial implications for future research avenues. It proposes some recommendations to help Saudi firms to choose more than one orientation simultaneously and adopt an appropriate configuration of orientations. Future research has to consider the interplay between these strategic orientations and the impacts of environmental turbulence in terms of market and technology turbulence on strategic orientations – performance relationship.Practical implicationsThe study suggests that managers of Saudi industrial firms should utilize a mix of aspects from several strategic orientations such as market and technology through entrepreneurial capabilities and resources that enhance higher levels of performance.Originality/valueThis study contributes to the literature on entrepreneurship and strategic management by showing the reliability of scales used and the confirmatory of the factor structure. It also contributes to business practices by showing the importance for Saudi firms to combine different strategic orientations and provide more attention to the interplay of these orientations in order to perform better in such a transitional context.

The contingent effects of coopetition on new product development under dual institutional interactions: evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hao Shen ◽  
Yu Gao ◽  
Chuan Liu ◽  
Xiangru Chen
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Structural Equation ◽  
New Product ◽  
Government Support ◽  
Equation Modeling ◽  
Institutional Environments ◽  
Dual Nature ◽  
Content Type ◽  
Business Context

Purpose Integrating the coopetition perspective with institutional theory, this study aims to determine how balanced patterns (BPs) and combinative patterns (CPs) of coopetition impact firms’ new product development (NPD) and how these effects are contingent on the various types of interactions between firms and the institutional environments in which they are embedded. Design/methodology/approach To test the hypotheses, 303 firms in China were surveyed. Based on the responses, the proposed model was estimated using structural equation modeling and hierarchical regression analysis. Findings The findings indicate that CP of coopetition enhances NPD but a BP of coopetition impedes NPD. Further, the results suggest that obtaining government support positively moderates the effect of the CP on NPD but negatively moderates the effect of the BP. Conversely, influencing government policy negatively moderates the effect of the CP but positively moderates that of the BP on NPD. Research limitations/implications The findings indicate that different patterns of inter-firm coopetition may have different effects on NPD, thus, providing a holistic and dynamic understanding of the contingent value of coopetition for NPD. The findings also suggest that the complex effects of coopetition on NPD are influenced by institutional interactions, introducing further contingencies to the process of coopetition-based innovation. Practical implications This study provides guidelines for managers seeking to fully understand and capitalize on the dual nature of coopetition: they should be cautious about the different patterns of competition – cooperation interaction and manage their interactions with institutional environments to increase the benefits and avoid the potential damage that different types of coopetition may bring. Originality/value This study offers direct insights into the balanced nature of coopetition and opens up an avenue for further exploration of the specific effects of cooperation dominance and competition dominance on firm performance in the business-to-business context. Moreover, the proposed contingency model offers a potential interface between institutional and coopetition research on NPD in marketing and strategic fields.

The impact of social capital and knowledge sharing intention on restaurants’ new product development

2020 ◽  
Vol 32 (10) ◽  
pp. 3271-3293
Author(s):  
Mesbahuddin Chowdhury ◽  
Girish Prayag ◽  
Vidya Patwardhan ◽  
Nischal Kumar
Keyword(s):  
Social Capital ◽  
Product Development ◽  
Knowledge Sharing ◽  
New Product Development ◽  
New Product ◽  
Partial Least Square ◽  
Equation Modeling ◽  
Optimum Level ◽  
Content Type ◽  
The Impact

Purpose Using social capital theory, this study aims to investigate internal social capital (ISC) and external social capital (ESC) as determinants of knowledge sharing intention (KSI) and new product development (NPD) in high-end restaurants. Design/methodology/approach A theoretical model is developed and tested using data collected from 523 respondents (owners/proprietors, partners and managers) from high-end restaurants in Karnataka, India. Partial least square structural equation modeling is used to analyze the data. Findings The results suggest that ISC has a significant and positive influence on ESC. This highlights the important role of ISC in building ESC. While ISC has a positive relationship with KSI, ESC has no influence on KSI. KSI has a positive effect on NPD. Practical implications Restaurant managers and owners should invest time and resources in building ISC by nurturing relationships with employees and partners. Encouraging and rewarding collaborative behaviors internally will facilitate the development of external relationships. Results also suggest the existence of an optimum level of knowledge sharing with external partners in restaurants. Originality/value To the best of the authors’ knowledge, this is the first study to examine the relationship between ISC and ESC, and test the effects of both KSI and NPD in high-end restaurants.

Proactive market orientation and business model innovation to attain superior new smart connected products performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shashishekar M.S. ◽  
Sandip Anand ◽  
Arun Kumar Paul
Keyword(s):  
Product Development ◽  
Market Orientation ◽  
New Product Development ◽  
Business Model ◽  
New Product ◽  
Business Model Innovation ◽  
Equation Modeling ◽  
Content Type ◽  
Proactive Market Orientation ◽  
Structural Relationships

Purpose Smart connected products (SCP) are the new archetype of products evolving. SCP are subtly changing the product-centric business to system-centric. Development and monetization of new SCP is an uphill task, it necessitates unique market orientation and business models. The purpose of this study is to establish a framework of variables influencing new smart connected products performance (NSCPP) at the market place, suggest methods to operationalize the framework. Design/methodology/approach The study identified key variables influencing NSCPP from existing literature. Conceptualized unique theoretical frameworks of these variables and empirically validated structural relationships. The study performed structural equation modeling using the data collected from 163 respondents having managed the development and monetization of 138 new SCP launches. Findings The study established structural relationships among selected variables proactive market orientation (ProMO), new product development proficiency (NPDPro) and business model innovation (BMoI). It revealed that the effect of ProMO is manifested through NPDPro. BMoI and NPDPro significantly influence NSCPP. Practical implications The study presented “ProMO Canvas” to plan and operationalize ProMO integrated with new product development (NPD) stage-gate activities. The study suggested the practitioners to execute ProMO activities preceding NPD activities and execute NPD, business model development activities in parallel to attain superior NSCPP. Originality/value This study is a novel effort to derive a unique empirical framework of variables ProMO, NPDPro and BMoI to attain superior NSCPP.

Knowledge sharing, commitment and opportunism in new product development

2015 ◽  
Vol 35 (7) ◽  
pp. 1056-1074 ◽  
Author(s):  
Richard C M Yam ◽  
Cliff Chan
Keyword(s):  
Product Development ◽  
Knowledge Sharing ◽  
New Product Development ◽  
Structural Equation ◽  
New Product ◽  
Future Research ◽  
Online Questionnaire ◽  
Managerial Implication ◽  
Content Type ◽  
Business Partners

Purpose – In today’s market, firms are riding on the wave of globalisation to enhance competitiveness through corporate collaboration in new product development (NPD). In joint NPD, huge amounts of information and knowledge are interchanged among business partners. However, industrial experience and past research have indicated that knowledge sharing among firms invite opportunism, that is, knowledge being leaked or misused by others. To determine the means to rectify the problems of opportunism in joint NPD, the purpose of this paper is to investigate the effect of commitment and knowledge sharing on opportunism. Design/methodology/approach – An online questionnaire survey was conducted to verify the research model with 312 valid responses from manufacturing firms. The survey data were analysed by structural equation modelling, and the findings were verified by follow-up interviews. Findings – Contradictory to most studies, this study finds that knowledge sharing among committed business partners suppresses, rather than invites, opportunism. Research limitations/implications – This finding is new in the literature with strong managerial implication. Firms that hesitate to share their knowledge with others because of the fear of opportunism should commit more seriously to their business partners so that they could share knowledge for better NPD. Originality/value – This study has reversed the sceptical belief of knowledge sharing leading to opportunism. This new belief will encourage corporate collaboration in joint NPD. However, for a comprehensive view on opportunism in inter-firm NPD, other governance mechanisms, that is, contract and trust, should also be studied in future research.

Viable strategy configurations and new product development capability and performance

2015 ◽  
Vol 27 (2) ◽  
pp. 249-266 ◽  
Author(s):  
Olimpia C. Racela
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Dynamic Capabilities ◽  
Hierarchical Cluster ◽  
New Product ◽  
Process Efficiency ◽  
Content Type ◽  
Strategic Orientations ◽  
Product Effectiveness ◽  
Npd Performance

Purpose – The purpose of this paper is to identify firm groups pursuing different configurations of customer-, entrepreneurial-, and information technology (IT) orientation and to compare their new product development (NPD) capability and NPD performance. Design/methodology/approach – Hierarchical cluster analysis was used on the sample of 156 firms on the basis of their mix of customer-, entrepreneurial-, and IT- orientation. Then, analysis of variance was used to compare the groups’ NPD capability (NPDCAP), NPD process efficiency (NPDPROC), new product effectiveness (NPEFF), and new product financial performance (NPPERF). Findings – Of the seven strategy configurations posited, four emerge and two unexpected configurations are revealed. Overall, firms simultaneously pursuing multiple strategic orientations have higher NPDCAP, NPEFF, and NPPERF. Interestingly, all six strategy groups have equally low levels of NPDPROC. Practical implications – To enhance NPDCAP and NPD performance, managers should consider more complex strategy configurations that act in complementary ways, in particular, customer-orientation complemented by either entrepreneurial- and/or IT-orientation. Moreover, more attention is needed to improving NPDPROC, as achieving gains in this area would contribute positively to firm performance. Originality/value – This study presents initial evidence that, at least for firms in Thailand, resources must be configured by pursuing several strategic orientations simultaneously to enhance their dynamic capabilities in NPD, a strategic issue that has not been given much attention in previous literature.

CEO transformational leadership and the new product development process

2016 ◽  
Vol 37 (6) ◽  
pp. 730-749 ◽  
Author(s):  
Tharnpas Sattayaraksa ◽  
Sakun Boon-itt
Keyword(s):  
Transformational Leadership ◽  
Organizational Learning ◽  
Product Development ◽  
New Product Development ◽  
New Product ◽  
Product Development Process ◽  
Equation Modeling ◽  
Strong Impact ◽  
Content Type ◽  
Innovation Culture

Purpose – The purpose of this paper is to examine the linkages between CEO transformational leadership and the new product development (NPD) process through organizational learning and innovation culture. Design/methodology/approach – A large-scale survey by a sample of 269 manufacturing firms in Thailand was conducted. Structural equation modeling was used to test the proposed relationships. Findings – CEO transformational leadership was strongly and positively associated with organizational learning and innovation culture. Additionally, organizational learning and innovation culture were positively related to the NPD process. Practical implications – Managers should pay more attention to organizational learning since it has a strong impact on the NPD process. CEOs with an innovation-oriented attitude should develop their transformational leadership to support organizational learning and an innovation culture. Originality/value – The study extends the understanding of the connections between CEO transformational leadership and the NPD process. The results highlight the mediating roles of organizational learning and innovation culture on the relationship between CEO transformational leadership and the NPD process.

Influence of knowledge management on product innovation by intrapreneurial firms

2019 ◽  
Vol 69 (1/2) ◽  
pp. 38-57
Author(s):  
Broto Rauth Bhardwaj
Keyword(s):  
Knowledge Management ◽  
Product Development ◽  
New Product Development ◽  
Product Innovation ◽  
Critical Path ◽  
New Product ◽  
Equation Modeling ◽  
Success Factor ◽  
Content Type ◽  
New Product Innovation

Purpose This paper aims to provide a study on knowledge management, facilitating new product innovation by intrapreneurial companies. Design/methodology/approach The methodology includes the empirical study which was conducted based on detailed questionnaire and data collection of 319 respondents from heavy engineering auto companies, such as Maruti, Honda and others. The data were analyzed to find the influence of knowledge management on new product development. Structural equation modeling method, critical path analysis and reliability were checked by Cronbach’s alpha. Findings The findings suggest that the innovation of a new product is critical for the companies. Also, it is very important for the companies to have knowledge management systems such as intelligence generation and dissemination process to facilitate information sharing among the various departments. Responsiveness to the market needs would be based on how authentic the customer data are and to what extent the company is able to share these data with research and product development departments to motivate new products for fulfilling these needs of the customers. This kind of process would enable the company to drive the next level of innovation within the company. Research limitations/implications The present study has several implications for managers and researchers. The model proposed in the study suggests the adoption and implementation of knowledge management for product innovation. The study findings also suggest that developing better methods to share knowledge and intelligence among the employees about the customers’ data would be a very critical success factor for new product innovation. Practical implications This paper also suggests that the researchers can study this model with respect to inter-disciplinary and inter-country study to become competitive using new product innovation. Originality/value The study contributes toward development of theory on creating innovation facilitated by knowledge management for enhancing innovation.

Effects of divergent communication schemes in new product development alliances

2016 ◽  
Vol 39 (3) ◽  
pp. 289-309 ◽  
Author(s):  
Robin Pesch ◽  
Ricarda B. Bouncken ◽  
Sascha Kraus
Keyword(s):  
Product Development ◽  
Medical Device ◽  
New Product Development ◽  
New Product ◽  
Equation Modeling ◽  
Medical Device Industry ◽  
Content Type ◽  
Speed To Market ◽  
Alliance Partners ◽  
Device Industry

Purpose – Firms build new product development alliances to cope with the demands of continuous and rapid new product development. Such alliances allow surplus access to complementary capabilities and knowledge. However, the successful use of specialization advantages requires coordination and effective communication between alliance partners. Communication is vital to alliance success, as it allows a timely flow of information and resources across partners and supports the coordination within the alliance. The aim of this study is to research how divergent communication schemes influence firms’ new product development performance in alliances. Design/methodology/approach – A paper-and-pencil survey about firms’ collaborative new product development performance in the German medical device industry was conducted. Results are derived from a survey of n = 184 new product development alliances in the medical device industry. To test the hypotheses, structural equation modeling (SEM) using the Mplus 7.0 software was applied. Findings – The empirical results indicate that divergent communication schemes enhance product innovativeness and speed to market in new product development alliances. The development of new insights and solutions through joint sensemaking builds the theoretical fundament for the supportive effects of divergent communication schemes. Divergent communication schemes go hand in hand with ambiguity, that is, the source of joint dialogues and discussion through which alliance partners refine and adapt their different perspectives and interpretations. However, the supportive effect of divergent communication schemes on speed to market declines with increasing collaboration intensity. Research limitations/implications – The assessment of divergent communication schemes and new product development performance of the dyadic relationships in this survey is only based on one respondent. Furthermore, the study’s focus on a specific industry sector, albeit one fitting particularly well to the research question, may further limit the generalizability of the empirical findings. Future research should thus strive to take both firms of the dyadic relationship into account and moreover attempt to investigate mediating effects such as joint sensemaking or creativity. Practical implications – The results indicate that alliance managers should become aware that different ways of communication are not per se dysfunctional. To achieve beneficial effects, they should enhance dialogues and constructive discussions through which the alliance partners develop novel insights and solutions on the fundament of occurring misunderstandings that root in divergent communication schemes. Regular meetings and conferences as well as inter-organizational teams should be applied because they stimulate joint dialogues and discussions in alliances. These instruments also enable learning processes and the development of trust that are both crucial for sensemaking processes in alliances. Originality/value – Prior research has stressed the importance of interorganizational communication for the success of alliances. However, little is known about the effect of divergent communication schemes in alliances. This study shows theoretically and empirically that divergent communication schemes can improve new product development performance in alliances. The supportive effect of divergent communication schemes is contrary to the argumentation that communication problems and misinterpretations hamper alliance success.

The effect of market orientation on new product development: a literature review

2017 ◽  
Vol 11 (4) ◽  
pp. 582-598 ◽  
Author(s):  
Yu Li ◽  
En Xie ◽  
Lulu Cheng
Keyword(s):  
Product Development ◽  
Market Orientation ◽  
New Product Development ◽  
New Product ◽  
Empirical Literature ◽  
Future Research ◽  
Research Directions ◽  
Content Type ◽  
Different Types ◽  
Future Research Directions

Purpose The effect of market orientation (MO) on new product development (NPD) has been widely discussed in recent research. This paper aims to summarize the theoretical and empirical literature in this field from 1990 to 2016. Design/methodology/approach A total of 89 papers were published in 15 top management journals over this period of nearly 30 years. Forty-one papers are identified as major research and recognized as five main streams by an approach of inductive. Findings Conclusions regarding trends in the literature on MO–NPD relationship and surfacing future research directions were drawn. Practical implications Managers can take a better understanding of the concept of MO. Moreover, they can find some approach to promote their firms’ NPD. Furthermore, they should keep in mind that MO’s effect on NPD may depend on different factors, and different types of MO may lead to different types of NPD. In addition, this paper provides researchers with systematic understanding of the literature in this area, and future research directions. Originality/value This is the novel paper to systematically review the literature on the effect of MO on NPD, and the first to classify the studies into five streams which provides clear directions for future research.

scholarly journals International-market-information use across new-product-development stages

2018 ◽  
Vol 35 (5) ◽  
pp. 760-784 ◽  
Author(s):  
Anna Dubiel ◽  
Sourindra Banerjee ◽  
Holger Ernst ◽  
Mohan Subramaniam
Keyword(s):  
Product Development ◽  
New Product Development ◽  
New Product ◽  
International Experience ◽  
Equation Modeling ◽  
Market Information ◽  
Content Type ◽  
Development Stages ◽  
Innovation Culture ◽  
Npd Performance

Purpose The purpose of this paper is to investigate how firms can better manage new product development (NPD) for international markets (IMs). This is not a trivial task as, for most firms, NPD still tends to be rooted in domestic operations. Design/methodology/approach This study proposes IM information (IMI) use across three stages of the NPD process (concept development, product development and commercialization) as a key driver of international NPD performance. This study also examines two antecedents of such usage: international firm experience; and international innovation culture. A conceptual framework is tested using structural equation modeling, based on data from 137 strategic business units of German firms. Findings The use of IMI during commercialization has a U-shaped (positive quadratic) relationship with international NPD performance, whereas curvilinear relationships in the concept and product-development stages cannot be confirmed. Having an internationally oriented innovation culture increases the level of IMI usage in all NPD process stages, while a firm’s international experience only does so in the commercialization stage. Thus, international experience does not necessarily impact access to and understanding of IMI in the early NPD stages. Research limitations/implications This study furthers understanding of NPD phenomena in an international context. However, future studies might consider exploring the mixed patterns of IMI use and NPD performance by looking at new forms and tools of market information management. Moreover, they may uncover more drivers of IMI use and test their frameworks in different contexts. Practical implications Managers should emphasize IMI use throughout the whole NPD process, even in the traditionally more R&D-focused product-development stage. Managers should strive to establish a corporate culture that views IMs as opportunities rather than liabilities. Originality/value This is the first study both to examine the relative impact of IMI use across all distinct NPD stages simultaneously on international NPD performance and to use quadratic effects to explain the relationship.

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