scholarly journals Platform Strategy for New Product Development: The Mediating Effect of Product Platform Strategy in the Korean High Technology Industry

2014 ◽  
Vol 17 (2) ◽  
pp. 17-28 ◽  
Author(s):  
Ku, Sang-wuk
Author(s):  
Sang-Wuk Ku

This chapter proves the mediating effect of product platform strategies on the relationship between a firm's subject, environment, and resources and the performance of new product development in the perspective of platform leadership. The author analyzed the mediating role of product platform strategy by considering CEO propensity, competition and customers, and competitiveness of retained resources. Compared to the past, in the perspective of platform leadership, the product platform strategy has a critical effect on the relationship between the business scope of a platform leader, the external relationship with complementors, and the internal organization of a platform leader impact on the performance of new product development. As a result of hierarchical regression analysis with the data of Korean high technology companies, the product platform strategy would be mediating the relationship between the antecedents such as CEO propensity, competition and customers, and competitiveness of retained resources and NPD performance.


The technology industry is dominated by major international companies, but there are also many SMEs, SBEs, and micro-companies operating effectively in this industry sector. Maintaining innovation is a key challenge, especially for the small players in this market, and technology transfer to develop new products and services is particularly challenging. This chapter examines four technology transfer projects in small software companies, three of which focused on new product development, and the fourth on a new service provision. All four projects were generally well managed, but effecting this degree of change requires more than good management, especially in such small companies. It is not surprising that some of these projects failed to achieve their objectives in the mid-term.


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