The interplay between entrepreneurial orientation and control mechanisms on decision-making and new product performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Civilai Leckie ◽  
Heath McDonald
Keyword(s):  
Decision Making ◽  
Information Processing ◽  
Entrepreneurial Orientation ◽  
Control Structure ◽  
New Product ◽  
Product Performance ◽  
Control Mechanisms ◽  
Content Type ◽  
New Product Performance ◽  
And Control

Purpose This study aims to investigate whether an organization that is entrepreneurial oriented can benefit from having a formal control structure and process in new product development (NPD). This study investigates two well-known control mechanisms in NPD, namely, stage-gate system (SGS) and project management (PM), as well as decision-making comprehensiveness (DMC), reflecting the amount of information processing and investigative activities undertaken. Design/methodology/approach Survey data were collected from 238 Australian small and medium enterprises. Structural equation modeling was used to test the hypotheses. Findings The findings of this study suggest that entrepreneurial orientation (EO) directly impacts new product performance and indirectly does so through DMC. While both control mechanisms positively impact DMC, they affect the EO–DMC relationship differently. While SGS positively moderates the EO–DMC relationship, PM negatively does so. However, the use of SGS and PM enhances the effect of EO on DMC. Practical implications This research provides managers with insights into the design of structure and process in NPD to support interfunctional coordination and firm strategy. The findings of this study suggest that managers should be amenable to the application of control mechanisms and DMC. The calibration of the right mix of control systems is required to ensure that EO can contribute to decision-making in the NPD process. Originality/value On the surface, the implementation of EO requires flexibility while the control mechanisms and extensive information processing are seen as restricted structures for NPD activities. However, rather than viewing EO and control structure as counterintuitive elements in NPD, the results suggest that appropriate use of control structure can support organizational strategy and decision-making activities, which subsequently enhance NPD outcomes.

scholarly journals When is entrepreneurial orientation beneficial for new product performance? The roles of ambidexterity and market turbulence

2020 ◽  
Vol 27 (1) ◽  
pp. 79-98
Author(s):  
Shuangfa Huang ◽  
David Pickernell ◽  
Martina Battisti ◽  
Danny Soetanto ◽  
Qihai Huang
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Qualitative Comparative Analysis ◽  
New Product ◽  
Product Performance ◽  
Content Type ◽  
New Product Performance ◽  
Complementary Role ◽  
Holistic Understanding ◽  
Market Turbulence

PurposeEntrepreneurial orientation (EO) is an exploratory orientation because its dimensions such as innovativeness, proactiveness and risk-taking are the essence of exploration that entails uncertain returns. While literature suggests firms might need to counterbalance and complement EO with another orientation for organisational success, research on this area remains limited. Drawing on organisational learning theory, the purpose of this article is to explore whether and how the EO dimensions and organisational ambidexterity complement each other to enhance new product performance. More specifically, the authors explore the configurations of innovativeness, proactiveness, risk-taking and ambidexterity for superior new product performance under different levels of market turbulence.Design/methodology/approachBased on a configurational perspective, the authors applied fuzzy set qualitative comparative analysis (fsQCA) on a sample of 88 small and medium-sized firms from the UK. Using fsQCA allows the authors to uncover the potential complementary role between the EO dimensions and ambidexterity for superior new product performance.FindingsThe results of this paper reveal three configurations that are sufficient to produce superior new product performance. The results suggest that the EO dimensions and ambidexterity can complement each other to enhance new product performance. Further, under the turbulent market environment, the EO dimensions are also sufficient to produce superior new product performance.Originality/valueBy adopting a configurational perspective using fsQCA, the study provides a more holistic understanding of how the EO dimensions work together to influence new product performance. It also contributes to the literature by uncovering the complementary role of the EO dimensions and ambidexterity in shaping new product performance.

Benchmarking the performance of dairy products in Chinese dairy industry

2019 ◽  
Vol 26 (2) ◽  
pp. 714-731
Author(s):  
Santoso Wibowo ◽  
Rongbin Yang ◽  
Roshnee Ramsaran
Keyword(s):  
Decision Making ◽  
Group Decision Making ◽  
Performance Index ◽  
Dairy Products ◽  
Group Decision ◽  
New Product ◽  
Product Performance ◽  
Content Type ◽  
New Product Performance ◽  
Multicriteria Group Decision Making

Purpose The purpose of this paper is to present a review of the main factors that are important to consumers of dairy products and develop a new product performance index for evaluating and benchmarking the performance of dairy products. This helps dairy product companies understand their dairy products’ overall performance level, relative to other dairy products in the market. Design/methodology/approach A new product performance index is developed for evaluating and benchmarking the performance of dairy products with respect to multiple criteria. Seven important criteria are identified for evaluating and benchmarking the performance of dairy products. To deal with the subjective assessments of qualitative performance measures, linguistic terms approximated by fuzzy numbers are used. Based on the concept of the degree of dominance, a fuzzy multicriteria group decision-making approach is developed to obtain a product performance index for each dairy product. Findings The proposed multicriteria group decision-making approach is found to be useful and effective in evaluating and benchmarking the performance of dairy products. The approach is capable of adequately considering the presence of multiple decision makers, the multi-dimensional nature of the performance evaluation problem, and modeling the subjectiveness and imprecision of the performance evaluation process. Research limitations/implications The outcome of the multicriteria group decision-making approach is dependent on the subjective inputs provided by the decision makers. Practical implications This product performance index will provide useful insights for companies understand their strengths and weaknesses in terms of their products’ performance criteria, and identify relevant areas for continuous improvement. This product performance index is also applicable for dealing with the general multicriteria decision-making problems. Social implications The proposed multicriteria group decision-making approach can be used as a decision-making tool for providing various decision makers in dairy product companies and general consumers with useful information regarding the performance of different dairy products. Originality/value This paper highlights the important factors for evaluating and benchmarking dairy products and develops a new product performance index for evaluating and benchmarking the performance of dairy products in China.

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.

Perceptions of product advantage, NPD and organisational performance

2014 ◽  
Vol 21 (1) ◽  
pp. 49-68 ◽  
Author(s):  
Brian Healy ◽  
Ann Ledwith ◽  
Michele O'Dwyer
Keyword(s):  
New Product Development ◽  
Quantitative Research ◽  
New Product ◽  
Product Performance ◽  
Research Approach ◽  
Organisational Performance ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
New Product Performance

Purpose – This paper aims to extend previous studies on new product development (NPD) performance by identifying the product advantage, new product performance and organisational performance indicators that are considered by small and medium-sized firms (SMEs) to be most relevant to their performance. Design/methodology/approach – A quantitative research approach was adopted, using a cross-sectional survey of a sample of 137 firms representing the industry sectors active within the Irish economy. The research instrument was based on existing recognised research measures. Findings – The results suggest that: large firms consider that their products derive advantage through product quality and cost, while SMEs are more concerned with satisfying customer needs; larger firms concentrate on market measures in measuring new product performance, while SMEs focus on customer acceptance measures; and in measuring organisational performance larger firms focus on market share and profitability, while SMEs concentrate on profitability and sales growth. Research limitations/implications – This study identifies the aspects of product advantage, new product performance and organisational performance on which firms concentrate, thereby increasing our ability to redirect their focus from what they consider to be important, to what will have an impact on their firm's performance. Originality/value – This study identifies the aspects of product advantage, new product performance and organisational performance on which firms concentrate, thereby increasing our ability to redirect their focus from what they consider to be important, to what will have an impact on their firm's performance.

Customer involvement and new product performance

2016 ◽  
Vol 116 (8) ◽  
pp. 1700-1718 ◽  
Author(s):  
Taiwen Feng ◽  
Di Cai ◽  
Zhenglin Zhang ◽  
Bing Liu
Keyword(s):  
Design Methodology ◽  
New Product ◽  
Product Performance ◽  
Content Type ◽  
Performance Effect ◽  
Customer Involvement ◽  
New Product Performance ◽  
Joint Influence ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the joint influence of technological newness (TN) and market newness (MN) on the relationship between customer involvement (CI) and new product performance. Design/methodology/approach The authors employed hierarchical moderated regression analysis to test the hypothesized relationships using survey data collected from 214 Chinese manufacturing firms. Findings The authors found that the impact of CI on new product performance varies across the different configurations of TN and MN. Specifically, the performance effect of CI is most positive under low TN and high MN, while the performance effect is least positive under low TN and low MN. Originality/value This study enriches CI research by identifying different configurations of product innovativeness that augment or limit the value of CI.

scholarly journals Mastering the complementarity between marketing mix and customer-focused capabilities to enhance new product performance

2015 ◽  
Vol 30 (1) ◽  
pp. 60-71 ◽  
Author(s):  
Aron O'Cass ◽  
Nima Heirati
Keyword(s):  
Customer Relationship Management ◽  
Brand Management ◽  
Relationship Management ◽  
New Product ◽  
Marketing Mix ◽  
Product Performance ◽  
Customer Relationship ◽  
Content Type ◽  
New Product Performance ◽  
Management Capabilities

Purpose – This study aims to address the extent that the deployment of and complementarity between marketing mix and customer-focused (brand management, and customer relationship management) capabilities provide firms the capacity to transform their market knowledge into effective responsive actions that help to achieve new product success. Design/methodology/approach – A questionnaire was used as the primary means of data collection. Data from 160 large business-to-business firms across a variety of industries in Iran were analyzed using partial least squares regression to test the hypothesized paths. Findings – The results show that market-oriented firms are better at deploying marketing mix, brand management and customer relationship management capabilities, and these capabilities help to drive new product performance, and the complementarity between these marketing capabilities enhances the firm’s capacity to achieve new product success more than deploying each capability in isolation. Originality/value – In contrast to many existing studies, this study is the first to examine the role of marketing mix, brand management and customer relationship management capabilities and their complementarity as intervening mechanisms in the relationship between market orientation (MO) and new product performance. Further, this study extends the marketing literature by investigating the role of different forms of marketing capabilities in a complementary fashion in the context of a Middle Eastern economy.

scholarly journals Identifying the resource conditions that maximize the relationship between ambidexterity and new product performance

2017 ◽  
Vol 32 (8) ◽  
pp. 1038-1050 ◽  
Author(s):  
Nima Heirati ◽  
Aron O’Cass ◽  
Phyra Sok
Keyword(s):  
New Product Development ◽  
New Product ◽  
Product Performance ◽  
Hierarchical Regression ◽  
High Tech ◽  
Organizational Ambidexterity ◽  
Content Type ◽  
New Product Performance ◽  
High Technology Firms ◽  
Resource Conditions

Purpose Organizational ambidexterity is argued to be a prerequisite for successful new product development, especially for firms operating in highly competitive emerging markets. Despite growing attention to the importance of ambidexterity, the conditions under which specific forms of ambidexterity are more or less beneficial to new product performance (NPP) remain unclear. This study aims to investigate the contingent value of two specific resource conditions that favor the pursuit of the balanced dimension versus combined dimension of ambidexterity to achieve superior NPP. Design/methodology/approach Survey data were drawn from a sample of 156 high-tech large firms operating in the Middle East and tested through a hierarchical regression analysis. Findings This study highlights the important role of slack resources and social networking capability in enhancing the benefits of the combined dimension of ambidexterity over the balanced dimension of ambidexterity to drive NPP. Originality/value This study extends prior research which has mainly examined organizational characteristics that facilitates organizational ambidexterity and sheds light on the specific resource conditions under which high-technology firms operating in an emerging economy should pursue balanced dimension of ambidexterity or combined dimension of ambidexterity to achieve superior NPP.

scholarly journals The bidirectional complementarity between market orientation and launch proficiency affecting new product performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Farbod Fakhreddin ◽  
Pantea Foroudi ◽  
Mehdi Rasouli Ghahroudi
Keyword(s):  
Market Orientation ◽  
Dynamic Capabilities ◽  
Empirical Support ◽  
New Product ◽  
Product Performance ◽  
Product Launch ◽  
Equation Modeling ◽  
Content Type ◽  
New Product Performance ◽  
Capabilities Theory

Purpose Based on the resource-based view and dynamic capabilities theory, this study aims to examine the complementarity between market orientations and launch proficiency as a driver of new product performance. Design/methodology/approach In this research, an on-site survey of Iranian, research and development- intensive, manufacturing firms was carried out to examine the proposed hypotheses. Based on the 179 workable survey responses, a covariance-based structural equation modeling was applied to verify the proposed theoretical model. Findings The empirical findings reveal that the effects of market orientation or launch proficiency alone are not significant while the complementarity between them significantly influences new product performance. These research outcomes suggest that this complementarity leads to a bidirectional co-specialization relationship in firms, promoting both market intelligence generation processes and product-launch capabilities, and therefore resulting in superior new product performance. Originality/value The current characterization of the resource-based theory signifies that strategic resources merely have potential value and actualizing this value needs complementary organizational capabilities. Furthermore, the literature notably lacks empirical findings supporting these complementarities. Therefore, the findings concerning the bidirectional co-specialization between market orientation and launch proficiency not only provide empirical support for the dynamic capabilities theory but also address recent research calls to identify and calibrate the importance of dynamic capabilities for leveraging market orientation on new product performance.

The mediating role of ambidextrous capability in learning orientation and new product performance

2017 ◽  
Vol 32 (5) ◽  
pp. 613-624 ◽  
Author(s):  
Jing-Wen Huang ◽  
Yong-Hui Li
Keyword(s):  
New Product Development ◽  
New Product ◽  
Product Performance ◽  
Learning Orientation ◽  
Content Type ◽  
Mediating Role ◽  
New Product Performance ◽  
Potential Mediator ◽  
The Relationship

Purpose Learning orientation is critical in new product development. However, research has disregarded how learning orientation operates via the potential mediator to influence new product performance. The purpose of this study is to examine the mediating role of ambidextrous capability in the relationship between learning orientation and new product performance. Design/methodology/approach The empirical study uses a questionnaire approach designed to collect data for testing research hypotheses. This study tests the hypotheses using structural equation model in a sample of 336 firms in Taiwan. Findings The findings indicate that learning orientation relates positively to ambidextrous capability and new product performance. Ambidextrous capability, in turn, relates positively to new product performance. The results also support the argument that ambidextrous capability plays a mediating role in learning orientation and new product performance. Originality/value The value of this study is to identify ambidextrous capability as the potential mediator in the relationship between learning orientation and new product performance. The results enrich the understanding of learning orientation in new product project teams and suggest important implications for new product development and future research.

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