Speed to Market for Innovative Products: Blessing or Curse?

The relationships among speed to market, quality, and costs are important to managers as they attempt to best establish incentives and set goals for new product development teams, allocate resources for new product development, or create positional advantage in the market. The existing literature suggests that the economic consequences of being late to the market are significant, including higher development and manufacturing costs, lower profit margins, and lessening of the firm's market value. Therefore, traditional logic has held that new product development managers need to manage the trade‐offs among speed to market, quality, and costs. While both scholars and managers have often acquiesced to performance trade‐offs among “faster, better, and cheaper,” this research attempts to improve understanding of the interrelationships between these objectives, and ultimately profit. Based on a survey of 197 managers, faster speed to market is shown to be related to better quality and lower costs; it is not necessary to sacrifice one of these outcomes. Further, the moderating roles of two dimensions of innovativeness (innovativeness to the firm and to the market) are examined on the relationships between speed and quality, as well as speed and profit. Both dimensions of innovativeness positively moderate the relationship between speed to market and quality. For more innovative products (both to the firm and the market), there is a stronger positive relationship between speed and quality than for less innovative products. Further, innovativeness to the firm negatively moderates the relationship between speed and profit. Thus, speed has a less positive impact on profit for highly innovative‐to‐the‐firm products compared with less innovative‐to‐the‐firm products. By being conscious of the projects’ levels of innovativeness (along with prioritizing various performance measures), managers can more rationally decide when to emphasize speed to market based on this study's findings.     

New Product Strategies of Large, Dominant Product Manufacturing Firms: An Exploratory Analysis

Although researchers have expended considerable effort exploring the links between new product strategy and firm-level performance, most studies of this subject focus on small- to medium-sized firms. Compared to smaller firms, however, large companies typically maintain broader portfolios of products and have easier access to capital markets. Such fundamental differences suggest the need for closer examination of the relationship between new product strategy and the performance of large firms. Based on a study of 459 new products introduced during a 5-year period, Richard W. Firth and V. K. Narayanan profile the new product strategies of 18 large companies. They examine the methods used to acquire new products (internal development or external sources) as well as three dimensions of each firm's new product introductions: newness of embodied technology, newness of market application, and innovativeness in the market. In other words, these profiles identify the degree to which a firm's new product introductions involve core technologies and markets that are new to the firm, as well as the degree to which the market views these products as innovative. Because new product strategy is an investment decision, the study also examines the relationship between these strategic profiles and two facets of firm-level performance: risk and return. The study identifies five archetypes of new product strategy: Innovators, who produce innovative products by using their existing resources; Investors in Technology, who focus on expanding their technological base. Searching for New Markets, firms that venture into unfamiliar markets by introducing products closely aligned with those in their existing portfolios; Business as Usual, firms that rely on existing technologies and products to serve existing markets; and Middle-of-the-Road, firms content to introduce new products rated as low to moderate along all three dimensions of the strategic profile. For new products closely aligned with their core markets and technologies, the firms in this study typically rely on internal development. To introduce products involving new technologies or market applications, they turn to acquisition from external sources. Firms that emphasized market innovativeness in their new product introductions enjoyed higher returns than less innovative firms. And contrary to conventional wisdom, they gained this advantage without an accompanying increase in risk. In other words, continual innovation might provide a large firm with the means for achieving higher returns without higher risk.     

Patterns of cooperation during new product development among marketing, operations and R&D: Implications for project performance

Successful new product development is fundamentally a multidisciplinary process. While this view has helped lead management to the wide‐spread adoption of cross‐functional new product development teams, in this study we question whether simply increasing the level of functional integration is truly a guarantee for enhancing the performance of new products. To assess this we examined patterns of cooperation between marketing, R&D, and operations at both early and late stages of the new product development process for 34 recently developed products whose level of innovativeness ranged from high to low. A unique feature of this study is that data were collected from four sources for each project. This included personal interviews with a project leader and written surveys from marketing, operations, and R&D personnel on each project. Findings from this study reveal that: (1) functional cooperation typically increases as the process moves from early to late stages; (2) cooperation between marketing and R&D is highest during early stages of the process, but for marketing and operations, and for R&D and operations, cooperation typically increases as the process moves from early to late stages; (3) higher project performance — irrespective of the level of project innovation — is demonstrated when cooperation between marketing and R&D, and cooperation between operations and R&D is high during early stages; (4) late stage cooperation between marketing and operations, and R&D and operations is a key determinant in project performance for innovative products but not for noninnovative products, and; (5) that early stage cooperation between marketing and operations is associated with superior performance for low innovation projects but is also associated with poor performance for innovative projects. Findings from this study demonstrate that the importance of cooperation between specific functional dyads (i.e., marketing — R&D; R&D — operations; operations ‐ marketing) indeed varies by time (i.e., early vs. late stages), and by the level of innovativeness (i.e., new‐to‐the‐world vs. modifications) associated with the new product being developed.     

Are really new product development projects harder to shut down?

Just as a good houseguest knows when it's time to say good-bye, effective managers must recognize when it's time to terminate a new product development (NPD) project. As a product progresses toward commercialization, a manager's reluctance to terminate a failing project becomes increasingly expensive. Despite this growing expense, however, many managers are reluctant to shut down failing NPD projects. Jeffrey Schmidt and Roger Calantone hypothesize that this reluctance may be even more pronounced for innovative new products than for incremental NPD efforts. They suggest that perhaps the excitement that really new products engender within a company makes managers more reluctant to shut down the NPD project, even in the face of clear-cut evidence that the project is not a winner. To test these assumptions, they conducted a decision-making experiment in which managers were asked to make go/no-go decisions at each stage in a hypothetical NPD project. One project involved an innovative new product; the other project involved an incremental development—that is, a line extension that offered only marginal size and cost reductions compared to current models. At the outset of the experiment, participants were given market share and profit objectives for assessing the new product's performance. At each stage in the hypothetical NPD project, the participants then received updated performance data. The performance data provided to participants was identical for the two hypothetical projects, and fell increasingly farther below the performance objectives as the project progressed. The results of the experiment support the hypothesized relationship between product innovativeness and managers' reluctance to terminate a failing NPD project. Given identical, poor, performance forecasts, the managers who participated in this experiment were more optimistic about the likelihood of success, were more committed to the project, and were more likely to opt for continuing the project when it involved the more innovative product. In fact, the participants were more likely to allow the highly innovative NPD project to proceed all the way through commercialization, notwithstanding the progressively ominous performance feedback.     

Nonmimetic Knowledge and Innovation Performance: Empirical Evidence from Developing Countries

The knowledge‐based view suggests that the innovative performance of a firm is a function of the utilization and recombination of internal and external knowledge. The process of knowledge utilization and recombination to create new products can occur internally, through research and development activities, as well as externally, by making investments in creating links with suppliers, universities, customers, and a wide range of actors in the innovation system. This study focuses on the impact of unique, nonmimetic external knowledge, which is defined as unique technological knowledge that is not tapped by other firms in the new venture's operating environment, on the new venture's innovative performance. The purpose of the research is to investigate whether firms really benefit from utilizing and recombining unique, nonmimetic knowledge in creating innovative products in a developing country context. Drawing on the knowledge‐based view and institutional theory, this study argues that entrepreneurs in their utilization and recombination of unique, nonmimetic knowledge are not always successful at creating new products. The empirical context is drawn from the Enterprise Survey produced by the Investment Climate Group of the World Bank. The findings based on a large sample of new ventures in developing countries reveal a curvilinear relationship with marginal diminishing returns between the degree of unique, nonmimetic knowledge and innovative performance. The results also show significant moderating effects of strategic product planning and economic and regulatory policy uncertainty. Specifically, strategic product planning helps in converting very unique, nonmimetic knowledge into new products. In addition, policy uncertainty can also positively moderate the process of recombining and converting unique, nonmimetic knowledge into new products. This study provides a more complete account of how unique, nonmimetic external knowledge affects innovative performance of new ventures in developing countries.     

It Won't Fit! For Innovative Products,Sometimes That's for the Best

The degree of overlap (i.e., fit) between product development organizations' resources and the product development projects pursued has powerful performance implications. Drawing on organizational learning theory and the resource‐based view, this research conceptualizes and empirically tests the interrelationships between the levels of fit, innovativeness, speed to market, and financial new product performance. After reviewing the research literature relevant to resource fit and new product performance, the level of innovativeness is posited to be an important moderating and mediating factor, which is validated by analysis of data gathered from 279 product developing firms. Technological fit has a negative direct effect on both technological and market innovativeness, while the use of existing marketing resources (i.e., a high degree of marketing fit) positively impacts technological innovativeness. This suggests, consistent with findings from market orientation research, that a deep, long‐held customer understanding can promote technological innovativeness. The moderating hypotheses proposed are also well supported: First, a high degree of marketing fit has a more positive impact on performance for market innovative products (e.g., products which address a new target market or use a nontraditional channel for the firm). Drawing on a deep customer understanding is more critical to performance for market innovative products. Conversely, the benefits of marketing fit are limited where market innovativeness is lacking. Interestingly, the counterpart moderating role of technological innovativeness on technological fit's performance effect is not significant; the level of technological innovativeness does not significantly impact the performance impact of technological fit. There are also significant moderating effects across dimensions. Our results show that the financial benefit of using existing marketing resources is lessened for technologically innovative products. Technological innovations necessitate drastic adaptation of marketing resources (i.e., channel and brand); firms drawing only on existing marketing resources for a technologically innovative new product will incur reduced profit. Similarly, the positive implications of using existing technological resources are limited for products which are highly market innovative. Generally, resource fit is seen to have an (oft‐overlooked) dark side in product development, though several of our findings suggest that marketing resources are more flexible than are technological resources.     

Developing Sustainable New Products in the Textile and Upholstered Furniture Industries: Role of External Integrative Capabilities

Environmental sustainability has become one of the key issues for strategy, marketing, and innovation. In particular, significant attention is being paid by companies, customers, media, and regulators to development and consumption of green products. It is argued that through the efficient use of resources, low carbon impacts, and risks to the environment, green products can be essential to help society toward the environmental sustainability targets. The number of green product introductions is rapidly increasing, as demonstrated by the growing number of companies obtaining eco‐labels or third party certifications for their environmentally friendly products. Hundreds of companies representing most of the industries, such as Intel, SC Johnson, Clorox, Wal‐Mart, and Hewlett–Packard, have recently introduced new green products, underlining the need to develop products that create both economic and environmental values for the firm and customers. A review of the literature shows that academic research on green product development has grown in interest. However, to date, only a few empirical studies have addressed the challenge of integrating environmental issues into new product development (NPD). Previous empirical works have mainly focused on a set of activities for the green product development process at the project level. After years of paying no or marginal attention to environmental sustainability issues, most of the companies now generally realize that it would require knowledge and competencies to develop green products on a regular basis. These knowledge and competencies can be varied, such as R&D, environmental know‐how, clean technology/manufacturing process, building knowledge on measuring environmental performance of products, etc., that may be developed internally or can be integrated through external networks. Adopting a resource‐based view of the firm, this article aims at (1) investigating the role of capabilities useful for companies to integrate knowledge and competencies from outside of the firm on green product development in terms of both manufacturing process and product design and (2) understanding whether green product development opens new product, market, and technology opportunities, as well as leads to better financial performance of NPD programs. To this end, a survey was conducted in two Italian manufacturing industries in which environmental issues are becoming increasingly important, namely textiles and upholstered furniture. A questionnaire was sent to 700 firms, and 102 useable questionnaires were returned. Results show that (1) companies engage in developing external integrative capabilities through the creation of collaborative networks with actors along the supply chain, the acquisition of technical know‐how, and the creation of external knowledge links with actors outside the supply chain; (2) external knowledge links play a key role in the integration of environmental sustainability issues into the manufacturing process, whereas capabilities such as the acquisition of technical know‐how and the creation of collaborative networks prove to be more important for integrating environmental issues into product design; and (3) the integration of environmental sustainability issues into NPD programs in terms of product design leads to the creation of new opportunities for firms, such as opening new markets, technologies, and product arenas, though not necessarily leading to improved financial performance of the NPD programs.     

Team control mode,workers' creativity,and new product innovativeness

Scholars of creativity and innovation argue that successful innovations originate from the creative ideas of workers. However, few studies have empirically examined how management mechanisms, such as the control mode adopted by the new product development team, may work together with workers' creativity to deliver a successful new product. Drawing on the theory of opposing action strategies of team innovation, we propose that different team control modes may work together with team members' creativity to jointly influence the innovativeness of teamwork outcomes. With survey data collected from different sources in new product development teams, we find that restrictive control can effectively help teams composed of very creative members to successfully develop innovative new products. Conversely, promotive control can effectively help teams composed of less creative members to deliver innovative new products.     

The contribution of external service inputs to the product development efforts of small manufacturing firms

This paper examines the contribution of external inputs to the innovation performance of small manufacturing firms (SMFs) in New York State. Survey data from a 4-sector sample of SMFs is presented. Particular attention is given to recent patterns of external spending on technological, management, and information services. The results suggest that innovation performance is enhanced by external sources of scientific, technical, and professional support. SMFs with well developed internal technical skills are found to exhibit above average spending on external help. Elaborate patterns of external knowledge acquisition are found to be particularly prevalent among innovative firms that derive a substantial proportion of their current sales from new or significantly improved products. The empirical results are compared with the findings reported by other North American and European studies. The paper concludes with a discussion of the implication of the survey results for regional development agencies and R&D managers.     

An empirically-based typology of product innovativeness for new financial services: Success and failure scenarios

During the last decade, an increasing number of studies have been concerned with the factors that lead to new service success. Quite a few studies, however, have examined the role of product innovativeness in new service development and performance. The present article aims to test empirically a widespread, yet under‐researched argument, according to which, different innovative types may be associated with different development patterns and performance outcomes. On the basis of a detailed literature review we designed the conceptual framework for the present study. More specifically, we propose that the performance outcome of a new service is the result of the development process followed, which, in turn, is influenced by the innovativeness of the new service. The development process is examined through three blocks of variables, namely new service development activities (i.e., the “what” component), process formality (i.e., the “how” component) and cross‐functional involvement (i.e., the “who” component). Performance is viewed in relation to both financial and non‐financial outcomes. The different dimensions of innovativeness form the basis of our classification scheme. To collect the data, we followed the “dropping off method. That is, we handed in self‐administered questionnaires to participants and, a picking‐up appointment was set. Respondents were NSD project leaders who were asked to select two financial services, one successful and one unsuccessful, that they had developed within the last three years and reply to all questions relating to the development and launching of these services. Overall, 84 financial companies participated in the study, providing data for 132 new financial services (80 successes and 52 failures) developed and marketed in Greece. Data analysis revealed that six distinct service innovativeness types exist. They can be represented in the form of a continuum depending on the degree of innovativeness that characterizes each type. At the most innovative extreme of the continuum we find the new‐to‐the‐market services followed by new‐to‐the‐company services, new delivery processes, service modifications, service line extensions, while at the least innovative end service repositionings are placed. These six types are found to be associated with different development patterns in terms of activities, formality and cross‐functional involvement as well as performance outcomes. Interestingly enough, our data suggest an almost inverted U‐shaped relationship between the degree of innovativeness of a new financial service and financial performance. On the other hand, the major service innovations make the strongest contribution on non‐financial performance, while “me‐too” offerings are the least successful ones. The study has a number of research contributions as well as implications for managers involved in new service development in the financial services industry. The conceptualization of the continuum of innovativeness helps disclosing the critical points of the NSD process and its structuring which, depending of the type of new service and the degree of innovativeness that characterizes it, ensures that the management's objectives regarding the performance of the new service are attained.     

Learning from openness: The dynamics of breadth in external innovation linkages

We explore how openness in terms of external linkages generates learning effects, which enable firms to generate more innovation outputs from any given breadth of external linkages. Openness to external knowledge sources, whether through search activity or linkages to external partners in new product development, involves a process of interaction and information processing. Such activities are likely to be subject to a learning process, as firms learn which knowledge sources and collaborative linkages are most useful to their particular needs, and which partnerships are most effective in delivering innovation performance. Using panel data from Irish manufacturing plants, we find evidence of such learning effects: establishments with substantial experience of external collaborations in previous periods derive more innovation output from openness in the current period. © 2013 The Authors. Strategic Management Journal published by John Wiley & Sons Ltd.     

Modularity,strategic flexibility,and firm performance: a study of the home appliance industry

Recent theorizing has proposed that modular product and process architectures are key enablers of strategic flexibility. We formulated an integrative conceptual model encompassing antecedents, contributing factors, and outcomes of modularity. We then tested this model on data from managers in U.S. and U.K. home appliance companies using structural equations modeling. The results indicate a positive relationship between modular product architectures and performance, with product model variety as a mediating variable. The results also highlight linkages between perceptions of market context and the use of modular products architectures, and between complementary organizational capabilities and firm performance. Copyright © 2002 John Wiley & Sons, Ltd.     

Product Innovativeness Dimensions and Their Relationships with Product Advantage,Product Financial Performance,and Project Protocol

A considerable body of research informs the relationship of product innovativeness with firm and environmental variables as well as the impact of product innovativeness on product financial success. While providing significant insight, the extant literature exhibits conflicting findings that raise questions as to how, specifically, product innovativeness contributes to product financial performance. This study ties together several streams of research related to the product innovativeness construct to enhance understanding of the product innovativeness—product financial performance relationship. The product innovativeness construct is deconstructed by conceptualizing the relationships among three dimensions of product innovativeness: technological discontinuity, marketing discontinuity, and customer discontinuity. Product innovativeness is distinguished from product advantage, and the relationships among product innovativeness dimensions, product advantage, and product financial performance are empirically tested. The results reveal that, indeed, product innovativeness consists of three separate dimensions that exhibit no or moderate correlations with product advantage. Furthermore, product advantage positively and marketing discontinuity negatively influence product financial performance. Finally, the study also examines how project protocols impact the product innovativeness dimensions. Project protocols, also known as product definitions, describe the general parameters a new product should exhibit (i.e., target segments, product functions and features, base technology, pricing, communication and distribution channels, and required resources) as well as the priorities of the general parameters. Because they guide product design and set priorities and have been found to be a dominant driver of product financial performance, project protocols are important. The present study enhances understanding of how project protocols influence the dimensions of product innovativeness, finding that project protocols positively impact product financial performance indirectly through product advantage and marketing discontinuity.     

Launch Strategy, Launch Tactics, and Demand Outcomes

In a typical new product development process, the role of the launch stage is to maximize the chances of profitably achieving acceptance in the target market. A launch plan can include strategic decisions (such as relative innovativeness, mass versus niche targeting, and lead versus follow) as well as tactical decisions (including the types of communication and distribution activities to emphasize, introductory pricing, branding, and when to announce new items and delete old ones). Unfortunately, the existing literature offers limited decision-making guidance to managers on how to prioritize and integrate the various strategic and tactical options. This article presents a conceptual framework that suggests that the strategic and tactical challenges posed in various product launch situations depend in large measure on the specific type of buying behavior to be influenced. Depending on the degree of product innovativeness, managers may establish one of three types of desired demand outcomes: (1) trial and repurchase, (2) customer migration, or (3) innovation adoption and diffusion. The degree to which the desired demand outcome is realized is shown to be dependent on buyers' perceptions of the new product's relative advantage and of its compatibility with buyers' values and experiences. Perceptions of the product on these two characteristics are initially influenced by the launch strategy. Given an understanding of these perceptions, managers can then select launch tactics designed to clarify or leverage relative advantages or to demonstrate or enhance compatibility to the target market. The framework also demonstrates how the linkages among launch strategy, launch tactics, and the demand outcomes are impacted by the product-market environment, the technological dynamics of the industry, and the firm's resources and capabilities. The author argues that, by examining a given launch situation in the context of this framework, managers will be able to think more systematically about the strategy and tactics required for market acceptance.     

The Impact of Communication Strategy on Launching New Products: The Moderating Role of Product Innovativeness

Academic literature is filled with debate on whether product innovativeness positively impacts new product performance (NPP) because of increasing competitive advantage or negatively impacts performance due to consumers' fears of novel technology and resultant resistance to adopt. This study investigates this issue by modeling product innovativeness as a moderator that influences the relationship between communication strategy and new product performance. The authors emphasize that the impact of innovativeness to producers is different from that to consumers and that the differences have strategic impact when commercializing highly innovative products. Product innovativeness is conceptualized as multidimensional, and each dimension is tested separately. Four dimensions of innovativeness are explored—product newness to the firm, market newness to the firm, product superiority to the customer, and adoption difficulty for the customer.
In this study, communication strategy is comprised of preannouncement strategy and advertising strategy. First, the relationship between whether or not a preannouncement is offered and NPP is explored. Then three types of preannouncement messages (customer education, anticipation creation, and market preemption) are investigated. Advertising strategy is characterized by whether the advertisement campaign at the time of launch was based primarily on emotional or functional appeals.
Using empirical results from 284 surveys of product managers, the authors find that the relationship between communication strategy and NPP is moderated by innovativeness, and that the relationships differ not only by degree but also by type of innovativeness. Implications for research and practice are discussed.     

Coordination of Design Supply Chains for Bundling Physical and Software Products*

Research on product development management has concentrated on physical products or on software, but not both. This article explores a special new product development (NPD) approach in which the internal development of core physical products is augmented by bundled and largely outsourced software features. We studied a medical device producer that has established a new medical information product group (MIPG) within their NPD organization to create software features that are bundled with their core physical products. The MIPG has conceptualized these software features as multiple software development projects, and then coordinated their realization largely through the use of external software suppliers. This case study centers on the question: how can firms effectively coordinate such product development processes? Our analysis of case evidence and related literature suggests that such product bundling processes, when pursued through design supply chains (DSC), are more complex than is typical for the development of streams of either physical products or software products individually. We observe that DSC coordination transcends the requirements associated with traditional “stage‐gate” NPD processes used for physical product development. Managers in DSC settings face a tension inherent to distributed work: keeping internal and external development efforts separate to exploit the design capabilities within a network of software suppliers, while ensuring effective delivery of a stream of bundled products. Many managers face this coordination tension with little, if any, prior knowledge of how to create a streamlined and effective DSC. Our research indicates that these managers need to make a series of interrelated decisions: the number of suppliers to qualify and include in or exclude from the DSC; the basis for measuring and modifying the scope of the suppliers' work; the need to account for asymmetric cost structures and expertise across the DSC; the mechanisms for synchronizing development work across elements of the DSC; and the approaches for developing skills—both technical and administrative—that project managers need for utilizing in‐house competencies while acquiring and assimilating design know‐how from external development organizations. When managers take a flexible approach toward these decisions based on a modular set of software development projects, they can improve their NPD outcomes through technical and organizational experimentation and adjust their own resource deployment to best utilize the suppliers' capabilities within their DSC.     

The Impact of Product Innovativeness on Performance

While many writers and strategists maintain that innovation is important, research has often demonstrated that product innovativeness does not have a major impact on the rate of success in the marketplace. Elko Kleinschmidt and Robert Cooper demonstrate that the relationship between product innovativeness and commercial success is U-shaped. That means that both high and low innovativeness products are more likely to be more successful than those in-between. The authors suggest that past research has not allowed for this non-linear relationship and that their data show that moderately innovative, middle-of-the-road products are less likely to succeed when measured by a number of performance criteria. They explore a number of implications of these results.     

The Relative Importance of Interfirm Relationships and Knowledge Transfer for New Product Development Success*

The relationship and network literature has primarily focused on particular partner types, for example, buyer–supplier relationships or competitor interaction. This article explores the nature and relative importance of different types of interfirm relationships for new product development (NPD) success. The underlying premise of the study is that not only the type of interfirm relationships but also the combination of relationships are important for NPD performance. The interaction with a specific type of partner is expected to influence innovative performance by means of appropriate knowledge transfer. Varying needs for external knowledge, and thus types of relationships, are observed depending on the particular stages in the NPD process, the character of the knowledge base of the firm, and the industrial conditions. The absorption of external knowledge is discussed using the degree of redundancy in knowledge, which is defined as the degree of overlap in the knowledge base of the sender and the recipient of knowledge. Hence, the degree of redundancy has direct implications for the ease and, hence, use of knowledge shared with an external partner. The article is based on data from the Know for Innovation survey on innovative activities among European firms, which was carried out in 2000 in seven European countries covering five industries. The article explores the extent of use of external relationships in collaborative product development and finds that customers are involved more frequently in joint development efforts. Second, the industry association of the most important relationship is studied, and the results show that firms tend to partner with firms from their own industry. The danger in this approach is that firms from their own industry tend to contribute similar knowledge, which ultimately may endanger the creation of new knowledge and therefore more radical product developments. The analyses combine the finding that relationships with customers are used most frequently at both early and late stages of the product development process, with a second and more contradictory finding that at the same time customer relationships have a negative impact on innovative success. Moreover, the combination of customers, with both universities and competitors, has a significant negative effect on innovative performance. The potential causes of this apparent paradox can be narrowed down to two: (1) the average customer may be unable to articulate needs for advanced technology‐based products; and (2) the average customer may be unable to conceptualize ideas beyond the realm of his or her own experience. Based on this evidence the article cautions product development managers to think explicitly about what certain customers can contribute with and, more importantly, to match this contribution directly with their own sense of what direction product development should go in the future. Finally, the role of complementary as well as supplementary knowledge is investigated for innovative success finding that sharing of supplementary knowledge with external partners in NPD leads to a positive effect on innovative performance. The article is concluded by a discussion of the implication of this finding for building knowledge within the firm and for selecting external partners for NPD.     

Managing salespeople strategically when promoting new products – incorporating market orientation into a sales management control framework

Salespeople play a pivotal role in promoting new products. Therefore, managers need to know what control mechanism (i.e., output-based control, behavior-based control, or knowledge-based control) can improve their salespeople’s new product sales performance. Furthermore, managers may be able to assist salespeople in performing better by having a strong market orientation. The literature has been inconsistent regarding the effects of sales management control mechanisms and has not yet incorporated market orientation into a sales management control framework. The current study surveyed 315 Taiwanese salespeople from publicly traded electronics companies with the aim of contributing to the sales management literature. The results show that sales management controls can directly affect salespeople’s innovativeness, which, in turn, affects new product sales performance. However, sales management controls cannot affect performance directly. Furthermore, market orientation can positively moderate the relationship between salespeople’s innovativeness and new product sales performance.     

The Mixed Blessings of Technological Innovativeness for the Commercial Success of New Products

This study addresses the contradiction that, although technological innovativeness of new products is often seen as a major driver of competitive advantage and commercial success, empirical research is not always able to show a significant performance influence. In order to find an explanation, the effects of technological innovativeness are decomposed as its influence on the market, the innovating firm, and the firm's environment is considered. The proposed model is tested on a sample of new product development projects. In order to avoid systematic biases, this paper uses a longitudinal survey design with two informants and a sample that includes both incremental and highly innovative projects. The results show that technological innovativeness has both positive and negative effects on the commercial success of new products. On the one hand, technological innovativeness can increase customer value, which in turn has a positive effect on success. On the other hand, incorporating new technologies into new products also implies changes in the innovating firm and potentially in its environment. These changes have a negative impact on commercial success. The positive and negative effects compensate for each other, so that the total effect of technological innovativeness on commercial success is close to zero. The findings imply that firms developing new products through incorporating radically new technologies often seem to underestimate the inherent complexities with respect to both internal and external changes. Developing and introducing new products with a radically changed technology also implies anticipating the need for new competences, processes, structures, and network partners. Social and political resistance against technological changes, large investments in new infrastructures, and the long duration of these changes additionally become frequent features of such innovation endeavors. Hence, firms embarking on a path of exploiting radically new technologies should consider those complexities very carefully when making their new product development decisions.