The influence of market orientation on new product success

Abstract

PurposeThis research seeks to investigate key determinants of new product success (NPS) from the perspective of new product development (NPD) team leaders in the electronics industry in China. A model is proposed investigating the interplay among elements of market orientation and the moderating effects of customer and competitor orientations on the relationship between R&D‐Marketing cooperation and NPS.Design/methodology/approachData were collected from 217 respondents to an online questionnaire that had been sent to 3,000 potential participants randomly selected from electronics firms across China. Regression analysis was used to analyse the data.FindingsResults from the research support the hypotheses that NPS is driven by R&D‐Marketing cooperation, customer and competitor orientations. Also, the association between R&D‐Marketing cooperation and NPS is moderated by customer and competitor orientations.Practical implicationsThis research confirms the positive role that R&D‐Marketing cooperation plays in NPS and the moderating effects of customer and competitor orientations on the association between R&D‐Marketing cooperation and NPS. The findings are of relevance to management practitioners as developing successful new products has become an ever more pressing issue in the wake of rising labour cost and increasing market competition.Originality/valuePrevious NPD literature has focused primarily on NPD activities in Western and developed countries. This research fills the research gap by identifying the empirical links between R&D‐Marketing cooperation and NPS. It is the first to examine the moderating effects of customer and competitor orientations in the relationship between R&D‐Marketing cooperation and NPS of electronics firms in China.

The relationships among supply chain partnerships, customer orientation, and operational performance: the effect of flexibility

“…Moreover, trust makes customer comfortable to share personal knowledge (Hsiao et al 2010), and act on advice from virtual environment. Customer orientation develops a firm's capability to listen to the voices of its customers, respond to their needs, and thereby maximize its long-term profitability (Chuang and Lin 2013;Reychav and Weisberg 2009;Roberts and Grover 2012;Stanley Kam Sing and Canon 2012). A customeroriented firm, which strives to best serve its customers, is a firm which is capable of not only developing products that meet the needs of customers but also developing products that customers aspire to (Stanley Kam Sing and Canon 2012).…”

“…Customer orientation develops a firm's capability to listen to the voices of its customers, respond to their needs, and thereby maximize its long-term profitability (Chuang and Lin 2013;Reychav and Weisberg 2009;Roberts and Grover 2012;Stanley Kam Sing and Canon 2012). A customeroriented firm, which strives to best serve its customers, is a firm which is capable of not only developing products that meet the needs of customers but also developing products that customers aspire to (Stanley Kam Sing and Canon 2012). Thus, when food service companies take their customers' lead to produce products, they will understand the customers' need, and they will provide the product design from the customer (Sigala 2014); consequently, a customer-oriented environment is crucially important for food service companies.…”

The Evaluation of Effect Electronic Banking in Customer Satisfaction and Loyalty

“…Customers who are satisfied with the electronic stores they currently use develop a positive attitude towards those electronic stores. Studies have found that customer satisfaction is anevaluation of service experience and is a key factor in retaining customers and improving customer loyalty and retention (Wong & Tong, 2012).…”

The Role of Market Orientation in Innovation of Bodybuilding Clubs

“…According to Kam Sing Wong and Tong (2012), today's organizations are experiencing a new era of competition that this competition has resulted to the destruction of many organizations, thus managers in today's organizations should always monitor their competitive performance in their industry so as to maintain their share of the market and gain a greater share than their competitors. This makes managers to always consider the outside context and configure inner context of their organization with the needs of outside context which could form innovation in the organization and eventually its success (21). Serna, Guzman, and Castro (2013) in this regard mention that a part of market orientation of organizations must be focused on the performance of competitors.…”

“…Jiménez-Zarco, Pilar Martínez-Ruiz, and Izquierdo-Yusta (2011) conducted a study on 433 service companies in Spain, which had at least two years of experience, and concluded that the aspects of market orientation has been effective on innovation of services provided in these companies to their customers (17). Results of Kam Sing Wong and Tong research (2012) titled as the impact of market orientation on the success of new products in the electronics industry of China indicated that the aspects of market orientation has been effective on the success of new products (21). Salman (2015) studied service companies in the city of Islamabad in Pakistan and came to the conclusion that the aspects of market orientation have been effective on the innovation of these organizations (22).…”