THE IMPACT OF CHANGING MARKETS AND COMPETITION ON THE NPD SPEED/MARKET SUCCESS RELATIONSHIP

2010 ◽  
Vol 14 (05) ◽  
pp. 841-870 ◽  
Author(s):  
MURRAY R. MILLSON ◽  
DAVID WILEMON
Keyword(s):  
New Product Development ◽  
New Product ◽  
New Markets ◽  
Dynamic Markets ◽  
Line Extensions ◽  
The World ◽  
Research Questions ◽  
Organizational Integration ◽  
The Impact ◽  
Market Success

Our research examines the relationships among four factors thought to be important to new product developing organizations. Those factors include the speed with which product developers produce new products and bring them to market; the degree of integration among the various groups participating in the New Product Development (NPD) process; the proficiency with which the product developers perform their tasks; and the degree of success attained upon the completion of the NPD process. Market dynamism, or the degree of customer changeability, and market hostility, or the degree of market competitiveness, are thought to moderate the relationships among the four previously noted factors. The research questions driving our investigation include: (1) Does NPD project success vary with NPD process speed?; (2) Does NPD speed vary across innovation types (new-to-the-world products, line extensions, etc.)?; (3) Does the strength of the relationships among NPD speed, organizational integration, NPD proficiency (overall and Fuzzy Front End [FFE]), and success vary with the degree of environmental dynamism (changing customer needs)?; and (4) Does the strength of the relationships among NPD speed, organizational integration, NPD proficiency (overall and FFE), and success vary with the degree of market hostility (competition)? We probed the electrical equipment, medical device, and heavy construction equipment industries to provide the data to address our research questions. Our research suggests that the speed with which projects were completed in our sample did not vary between projects that were more or less successful. We also found that the speed with which projects were completed did not vary across various product categories (new-to-the-world, line extensions, etc.) of newly developed products for the industries studied. Primarily, we found that market dynamism moderates the relationship between NPD speed and NPD proficiency whereas environmental hostility mediates NPD speed and NPD proficiency, NPD speed and organizational integration, and NPD speed and new product market success. Our data indicate that speed is not associated with NPD proficiency, degree of organizational integration, and new product success in less dynamic markets whereas speed has an inverse relationship with successfully entering new markets, the proficiency with which development and launch activities are performed, and the proficiency with which new product marketing strategies were implemented in more dynamic markets. Finally, we found that speed is inversely related to successfully entering new markets, overall NPD proficiency and organizational integration, predevelopment stage proficiency and organizational integration, and development and launch proficiency and organizational integration in non-hostile (competitive) environments whereas we found no significant relationships between these factors and speed in hostile environments. We provide several implications for both scholars and NPD managers.

A MODERATION STUDY OF ORGANISATIONAL INTEGRATION AND NPD PROCESS PROFICIENCY IN THE U.S. AND KOREAN HEAVY CONSTRUCTION EQUIPMENT INDUSTRIES

2015 ◽  
Vol 19 (05) ◽  
pp. 1550061 ◽  
Author(s):  
MURRAY R. MILLSON ◽  
JONGBAE KIM
Keyword(s):  
New Product Development ◽  
Process Development ◽  
Product Market ◽  
New Product ◽  
Construction Equipment ◽  
Combined Model ◽  
Research Questions ◽  
Heavy Construction ◽  
The U.S ◽  
Market Success

This study explores the potential differences between the relationships relating the market success of new products, the proficiency with which new product development (NPD) activities are executed during NPD processes, and the degree of organisational integration among various groups during NPD processes in the (U.S.) and Korea. This research addresses three major research questions: (1) Does NPD process proficiency impact new product market success in U.S. and Korean firms? (2) Does organisational integration impact new product market success in U.S. and Korean firms? and (3) Does country moderate the relationships between NPD process proficiency and new product market success, and between organisational integration and new product market success? This study is based on NPD data related to new product projects from the heavy construction equipment industries in the U.S. and Korea. Based on our combined model, it was found that NPD process development proficiency significantly impacts new product market success but organisational integration does not impact new product market success. Additionally, it was found that country moderates the NPD process proficiency-NPD market success and NPD organisational integration-NPD market success relationships. Study implications and recommendations are provided for NPD managers based on this research.

New Product Market Success for Bio-Tech Industry

2014 ◽  
Vol 543-547 ◽  
pp. 4634-4637
Author(s):  
Chao Yu
Keyword(s):  
New Product Development ◽  
Structural Equation ◽  
Product Market ◽  
New Product ◽  
Product Performance ◽  
Equation Modeling ◽  
Innovation Capability ◽  
Organizational Integration ◽  
Market Success

The role of organizational integration as an antecedent of new product performance has been extensively documented in the literature. A leading corporation must either develop new successful products to sustain its business competence or keep growing in global markets. Organizational integration has attracted ever-increasing interest because of the publication of seminal works and is a strategically valuable resource for successful new product development (NPD). This article focuses on NPD projects in the Taiwanese bio-tech industry. In particular, this study examines the mediate relationship between Organizational integration and new product market success through innovation capability. We propose our research model and then test it by applying structural equation modeling based on the partial least squares (PLS) methodology. The results show that organizational integration not only can achieve new product market success directly but can also increase new product market success through innovation capability.

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.

Impact of Urban Growth on Market activities in Gombe Metropolis

2020 ◽  
Vol 4 (3) ◽  
Author(s):  
Ibrahim Faruk Gaya ◽  
Mu’azu Audu Zanuwa ◽  
Kamaludeen Adamu Muhammad ◽  
Mashkurah Ahmed Usman ◽  
Shehu Muhammad
Keyword(s):  
Urban Growth ◽  
Satellite Images ◽  
Urban Expansion ◽  
Secondary Data ◽  
New Markets ◽  
Fields Of Study ◽  
Questionnaire Administration ◽  
The World ◽  
The Impact ◽  
The Town

Urban growth concept has dragged the attention of several scholars of different fields of study for decades. Urban growth refers to expansion of urban centres in size due population growth, which hiked the number of buildings in urban centres around the world. The finding of the paper indicate that Gombe Metropolis expanded by (85 hectares) each year from 2000 to 2010 and the expansion of Gombe Metropolis occur in all direction. The rate at which Gombe Metropolis expand grown to (203 hectares) each year from 2010 up to date. Therefore, the rate at which Gombe metropolis expanded increases by 138% from 2010 to date and how number of markets increases to 16 currently from 12 in the year 2010. This paper study the Impact of urban growth on market in Gombe Metropolis. Coordinate of markets of existing markets was collected. For second set of data used in this paper i.e. secondary data which include map of Gombe metropolis, related journals, text books, published and unpublished document, and Newspaper were consulted. The data generated from questionnaire administration were analysed using tables, graphs and charts. Satellite images showing how urban growth is taken place in Gombe Metropolis were also analysed. The study examines the impact of urban growth on Gombe Metropolis markets activities over the period of study. The findings of the study indicate emergence of new markets in the study area over the years of study as a result of urban expansion that occur in Gombe Metropolis. It also indicated that the new established markets were located in areas where urban growth take place in study area and these new markets are patronized by people within the environment or vicinity of the markets. Most of the newly emerged markets are located at the periphery of the town where urban expansions occur rapidly.

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.

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