Pharmaceutical innovation and market share: evidence from a generic market

2016 ◽  
Vol 10 (4) ◽  
pp. 376-389 ◽  
Author(s):  
Nazila Yousefi ◽  
Gholamhossein Mehralian ◽  
Hamid Reza Rasekh ◽  
Hossein Tayeba
Keyword(s):  
Pharmaceutical Industry ◽  
Product Development ◽  
New Product Development ◽  
Market Share ◽  
Historical Data ◽  
Expert Panel ◽  
New Products ◽  
New Product ◽  
Pharmaceutical Market ◽  
Content Type

Purpose Pharmaceutical market value in Iran exceeded to more than US$4bn in 2013, indicating annually over 20 per cent growth. In the past decades, Iranian pharmaceutical industry was supported by government policies, namely, generic substitution, import limitation and local production support; however, the local pharmaceutical manufacturer’s market share in value has been decreased gradually. This study aims to provide historical data on Iran pharmaceutical market to show the importance of new product development to attain greater market share and tries to motivate the pharmaceutical industry located in developing countries to develop more innovative medicines. Design/methodology/approach This is a descriptive cross-sectional study that investigates the Iranian pharmaceutical market by focusing on new products over a five-year period (2009-2014), and that was augmented by an expert panel to rank subjectively firms’ performance indicators to shed light on the importance of new product development to firms’ performance. Findings The expert panel results find out that new product development is one of the most important “result indicators” for Iranian pharmaceutical companies. Historically, in line with the experts’ opinion on the new product development, the Iranian pharmaceutical industry has shown its capability to develop new medicines by developing 3,095 new products (mostly new-to-firm) across about 100 firms. Despite this fact, the share of local manufacturers in new medicines’ market decreased from 52 per cent at the beginning of studied period to 24 per cent at the end, and the gap between the unit value of imported and domestically produced medicines has been significantly increased due to low-innovative medicines locally produced. Research limitations/implications This research was challenged with limitations such as lack of reliable published data on new medicines in the Iran pharmaceutical market. Practical implications This study highlights the fact that developing more innovative products in the generic pharmaceutical industry such as Iran can grant its market share. Originality/value This is an original study that shows the effect of innovative product development on market share through historical data.

The dark shadow of corruption on new product development

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saikat Banerjee
Keyword(s):  
Product Development ◽  
New Product Development ◽  
New Products ◽  
Negative Relationship ◽  
New Product ◽  
Senior Managers ◽  
Firm Level ◽  
Theoretical Understanding ◽  
Market Strategy ◽  
Content Type

PurposeThe study examines the effects of corruption activities on new product development of firms. The roles of senior managers in the relationship between corruption activities and new product development are also studies.Design/methodology/approachThe data of Indian firms are collected from the Enterprise Survey conducted by World Bank in 2014. Variables on corruption, new product development, and other firm level factors are considered in the study. Logistic regression is used to examine the effect of firm's engagement in corruption activities on new product development.FindingsCorruption activities of firms is negatively related to new product development. Senior manager's industry experience and engagement in regulatory activities weaken the negative relationship between firm's engagement in corruption activities and new products development.Practical implicationsWith the increased focus on innovation, organizational managers have to work on the development of new products, and understanding of the negative relationship between engagement in corruption activities and new product development will help them to achieve the desired organizational goals.Originality/valueThe study contributes in three ways. Firstly, the paper extends the theoretical understanding of the implication of a non-market strategy, corruption on new product development. Secondly, the study contributes to the existing literature on the antecedents of new product development. Finally, the roles of senior managers helps to understand the importance of their industry and regulatory experience in the main relationship.

An exploration of product advantage and its antecedents in SMEs

2018 ◽  
Vol 25 (1) ◽  
pp. 129-146 ◽  
Author(s):  
Brian Healy ◽  
Michele O’Dwyer ◽  
Ann Ledwith
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Research Question ◽  
New Products ◽  
New Product ◽  
Market Uncertainty ◽  
Competitive Intensity ◽  
Product Innovativeness ◽  
Content Type ◽  
Resource Uncertainty

Purpose Product advantage is consistently identified as the most important product characteristic in explaining the adoption and success of a new product. In small- and medium-size enterprises (SMEs), in particular, improving new product performance is critical in supporting SME survival and growth. Given that SMEs are a vital component of most economies improving their ability to effectively launch new products is an essential activity for sustainability. However, although literature illustrates that developing products with high levels of product advantage and new product development is advantageous, few studies have explored product advantage activities in SMEs and consequently research on product advantage is over-reliant on large firm studies. Given the specific resource constraints which challenge SME new product development (i.e. financial, expertise, access to networks etc.) context-specific research is critical. The purpose of this paper is to address these gaps in literature by exploring the product advantage activities in four manufacturing SMEs actively engaged in product development. Design/methodology/approach The research question centres on exploring the antecedents of product advantage in SMEs (market uncertainties, competitive intensity, resource uncertainties and technological uncertainties) in the context of multi-dimensional perspective of product advantage (consisting of product innovativeness, product superiority and product meaningfulness). A qualitative interpretivist approach was used to explore the research question exploring the antecedents to, and nature of, product advantage in SMEs. Case studies were used to inductively and holistically view SMEs in their entirety, this approach facilitated in-depth understanding of the reality of the SME and allowed for the interpretation of the SMEs owner/managers perspectives on product advantage. Findings The empirical findings suggest that the most significant antecedent of product advantage in the case SMEs was competitive intensity followed by technology uncertainty and resource uncertainty and then market uncertainty. Product advantage was found to be strongly based on product meaningfulness with elements of product innovativeness and product superiority also defining their perspective of product advantage. Research limitations/implications There are several implications for SME owner/managers arising from this study. In the context of these findings, SMEs need to carefully consider three issues in supporting their new product development: first, their dependence on letting existing customers drives their new product development; second, owner/manager perceptions of product advantage are focused on delivering guaranteed sales, this focus nurtures incremental continuous product development rather than radical discontinuous innovation. While this strategy is low risk and supports SME sustainability, it could lead to less ambitious innovation strategies and slower growth for SMEs; third, antecedents of product advantage such as competitive intensity, technology uncertainty and resource uncertainty and market uncertainty need to carefully managed. Originality/value This study illustrates the complex nature of the antecedents and nature of product advantage in SMEs. The study provides insight into the product advantage characteristics that SMEs consider important in the development of new products. Different elements of each of the three product advantage constructs (product meaningfulness, product superiority and customer meaningfulness) are considered important under different conditions. Throughout this analysis, market needs and wants, technology, competitors and resources emerged as the defining conditions upon which product advantage decisions are based. More specifically knowledge regarding the market, technology, competition and the availability of resources dictated the type and levels of advantages that were presented in new products.

scholarly journals Why do some UK SMEs still find the implementation of a new product development process problematical?

2007 ◽  
Vol 45 (2) ◽  
pp. 235-251 ◽  
Author(s):  
Jonathan D. Owens
Keyword(s):  
Product Development ◽  
New Product Development ◽  
New Products ◽  
Empirical Support ◽  
New Product ◽  
Senior Management ◽  
Product Development Process ◽  
Management Support ◽  
Term Survival ◽  
Content Type

PurposeThe long‐term survival of a business often hinges on its ability to successfully introduce new products into the marketplace. These new products and their successful development can be the lifeblood of a company. This paper aims to examine why product development delays occur in SMEs, the nature of these delays, and what can be done in order to avoid them.Design/methodology/approachThis research is exploratory in nature and provides empirical support to several propositions found in the innovation management literature on the development of new products.FindingsVarious reasons for delays in new product development are found, including poor definition of product requirements, technological uncertainties, senior management support, lack of resources, and poor project management. Major concerns raised included management and organisational style, lack of attention to detail, limited support for innovation, lack of strategic thinking, and poor manufacturing capabilities.Originality/valueThe consistent development and introduction of new products that customers value can be an important criterion for business growth and prosperity. Suggestions to help accelerate the NPD process in SMEs are presented, including active and visible senior management commitment, early involvement of functional groups, the introduction of new work methods, early market/technical testing, and effective new product organisations.

Combined MCDM approaches for century‐old Taiwanese food firm new product development project selection

2013 ◽  
Vol 115 (8) ◽  
pp. 1197-1210 ◽  
Author(s):  
Kuei‐Lun Chang
Keyword(s):  
Product Development ◽  
Competitive Advantage ◽  
New Product Development ◽  
Food Industry ◽  
Geometric Mean ◽  
New Products ◽  
New Product ◽  
Well Being ◽  
Project Selection ◽  
Content Type

PurposeThe aim of this paper is to integrate the analytic network process (ANP) and a technique for order preference by similarity to the ideal solution (TOPSIS) to help Taiwanese managers in century‐old food industry firms make better decisions for new product development (NPD) project selection.Design/methodology/approachThe balanced scorecard (BSC) which links financial and non‐financial, tangible and intangible, inward and outward factors can provide an integrated viewpoint for decision makers in selecting optimal NPD projects. Considering the interrelated perspectives and criteria of BSC, ANP is used to obtain the weights of the criteria. TOPSIS is used for simplifying ANP to rank the alternatives. After reviewing the literature on BSC, the study collected criteria for selecting optimal NPD projects. Likert nine‐point scale questionnaires based on the BSC criteria were received from 34 senior executives to obtain the importance of criteria.FindingsBased on the geometric mean values, the top 12 criteria are: Capabilities, Well‐being, Satisfaction, Lead‐time, Risk, Facility, Reputation, Loyalty, New customer, Market, Profitability and New market to structure the hierarchy for century‐old Taiwanese food business NPD project selection.Practical implicationsUsing the hierarchy based on four perspectives and 12 important criteria, century‐old Taiwanese food businesses may select the optimal NPD projects more effectively. Moreover, the practical application of the proposed approach illustrated is generic and also suitable for century‐old Taiwanese food businesses.Originality/valueIn 2008, Taiwan External Trade Development Council (TAITRA) established an association to help century‐old businesses to maintain growth and competitive advantage. To maintain continuous competitive advantage, developing new products is necessary. However, NPD is a risky process. The vital issue in NPD is how to select the optimal projects for new products. The majority of century‐old Taiwanese businesses are in the food industry. This paper contributes to a more effective selection of optimal NPD projects for century‐old Taiwanese food firms.

scholarly journals The impact of collaboration network on new product development

2019 ◽  
Vol 1 (3) ◽  
pp. 153-168
Author(s):  
Peizhen Chen
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Automobile Industry ◽  
New Products ◽  
New Product ◽  
Collaboration Network ◽  
Collaboration Networks ◽  
Content Type ◽  
The Relationship ◽  
Npd Performance

Purpose Researchers agree that collaboration networks can be an important implement in a firm’s innovation process, but there is limited empirical evidence on actually how they facilitate the new product development (NPD). The paper aims to discuss these issues. Design/methodology/approach Using longitudinal and multisource data on a sample of firms engaged in the Chinese automobile industry, the authors examine the structural properties of collaboration networks and their possible influences on firms’ NPD performance. Findings The results indicate that the structural features of the technology-based collaboration networks in the automobile industry have a low degree of collaborative integration and they influence firms’ NPD performance in diverse ways. The authors find that the direct ties, indirect ties and structural holes of the collaboration networks are all positively associated with firms’ number of new products. However, the authors have not found the evidence that the number of direct ties can moderate the relationship between the indirect ties and the NPD performance. Originality/value First, previous researches concerning the network mainly focused on their influence on technology innovation, few scholars studied the relationship between collaboration network and NPD. Second, the data used in this paper are true and valid, they are all from relevant departments of the Chinese government. Third, the empirical research of new products in China’s manufacturing industry is relatively new.

Entrepreneurial Bricolage and New Product Development Performance in New Ventures: The Contingent Effects of Founding Team Involvement

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Xinchun Wang ◽  
Xiaoyu Yu ◽  
Xiaotong Meng
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Resource Constraints ◽  
New Ventures ◽  
New Products ◽  
New Product ◽  
Strategic Decision ◽  
Entrepreneurial Bricolage ◽  
Founding Team ◽  
Npd Performance

Abstract New product development (NPD) performance is a key determinant of a new venture’s success. However, compared with established firms, new ventures often suffer from resource constraints when developing new products. Entrepreneurial bricolage is reported in the literature as an alternative strategic option that enables managers to overcome resource constraints when developing new products. However, because new ventures are often founded by an entrepreneurial team, the effectiveness and efficiency of using bricolage to improve NPD performance might be contingent on how the founding team plays its roles in this process. Using data from 323 new ventures in China, we find support for the critical role of entrepreneurial bricolage in improving NPD success under resource constraints. More importantly, our results reveal that the bricolage strategy is more likely to benefit a venture when the founding team is composed of members with diverse functional backgrounds and is not heavily involved in strategic decision-making.

scholarly journals Multiobjective strategies for New Product Development in the pharmaceutical industry

2012 ◽  
Vol 37 ◽  
pp. 278-296 ◽  
Author(s):  
José L. Perez-Escobedo ◽  
Catherine Azzaro-Pantel ◽  
Luc Pibouleau
Keyword(s):  
Pharmaceutical Industry ◽  
Product Development ◽  
New Product Development ◽  
New Product

Improving new product development performance by risk management

2016 ◽  
Vol 31 (3) ◽  
pp. 418-425 ◽  
Author(s):  
Mehran Salavati ◽  
Milad Tuyserkani ◽  
Seyyede Anahita Mousavi ◽  
Nafiseh Falahi ◽  
Farshid Abdi
Keyword(s):  
Risk Management ◽  
Product Development ◽  
New Product Development ◽  
Small Sample Size ◽  
New Product ◽  
Small Sample ◽  
Content Type ◽  
Total Performance ◽  
The Relationship ◽  
Npd Performance

Purpose The principal aim of this study is to investigate the relationship between technological, marketing, organizational and commercialization risk management on new product development (NPD) performance. Design/methodology/approach Based on questionnaire, the data were collected from a sample of general automotive industry in Iran. Based on theoretical considerations, a model was proposed and descriptive statistic and hierarchical regression were used to measure the relationship between risk management factors and NPD performance. Findings Data analysis revealed that if organization can amplify their knowledge and information about risk and main factors that affect NPD process, not only can they do their work better but can also increase their ability to predict future happenings that affect performance. Research limitations/implications First, due to the relatively small sample size, caution should be exercised when interpreting the results. Second, the data were collected from automotive producer in Iran, which may restrict to some extent generalizability of the findings. Practical implications The results suggest that managers should consider more attention to risk management. If managers spread the risk management in all aspects of the NPD project, total performance will be increased and it can develop the probability of NPD success. Also organizations should perform great market research due to best commercialization. Originality/value Past researches have presented complete information about NPD process. But identifying and considering the effect of the risk management parameters that are connected to the NPD process were the main thrusts to perform the study. In this paper, based on past research about risk management of NPD, the extra aspect of process that can improve total performance of NPD has been examined.

Cultivating product innovation performance through creativity: the impact of organizational agility and flexibility under technological turbulence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wilert Puriwat ◽  
Danupol Hoonsopon
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Product Innovation ◽  
New Product ◽  
Innovation Performance ◽  
Incremental Innovation ◽  
Organizational Agility ◽  
Content Type ◽  
Technological Turbulence ◽  
The Impact

PurposeThis study is to compare the impact of organizational agility and flexibility on performance of each type of product innovation (radical vs incremental innovation). Additionally, the moderating effect of technological turbulence on the relationship between the two types of organization is examined.Design/methodology/approachBased on gaps in the existing literature, the survey data are collected from managers who are in charge of developing new products in three industries: food and beverage, chemical and machinery (N = 431). Confirmatory factory analysis is used to verify measurement items and regression analysis is used to test hypotheses.FindingsThe results show that organizational agility increases performance in radical innovation both in a certain situation and an environment with technological turbulence. In contrast, the impact of organizational flexibility is limited to increasing performance in both radical and incremental innovation performance in a certain situation.Originality/valueOur study extends the knowledge of organizational agility and flexibility in the domain of product innovation. Adaptation of organization to respond the technological turbulence will stimulate creativity of new product development teams to produce new useful ideas and transform these ideas to product innovation. The different types of organizing a new product development team to handle technological turbulence will provide different results in product innovation performance. In addition, the findings provide a recommendation on how the organization of a new product development team can improve performance in each type of product innovation under technological turbulence.

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