New product strategy, structure, and performance in two environments |
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Authors: | Cornelia Dröge Professor of Marketing Roger Calantone Broad Professor of Marketing |
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Institution: | Department of Marketing and Logistics, at the Eli Broad Graduate School of Management, Michigan State University, East Lansing, Michigan USA |
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Abstract: | The relationships among environment, strategy, structure, and performance in the context of new product development are examined. The “fit” of strategy and structure to environment is found to be better modeled as a moderator of strength. Overall, the results support the importance of environment, strategy, and structure for the performance of new products. The basic conclusions are that the new product profile has a stronger positive effect on performance for nondominant competitors than for dominant competitors, whereas for dominant competitors, speed and first-to-market strategies are more important to long-term success. |
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