When product development performance makes a difference: A statistical analysis in the electronics industry

Terwiesch, Christian

doi:10.1016/s0737-6782(97)00068-4

Cited by 41 publications

(21 citation statements)

References 33 publications

(26 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…For example, Griffin (1997) reports that bestpractice firms realize 49 percent of their sales from products developed and launched in the last five years and that new product performance accounts for onefourth of the variability in organizational performance. Similarly, Terwiesh et al (1998) report that new product performance explains, depending upon the market context, between 30 and 70 percent of organizational profitability variance. Accordingly, it is hypothesized that H8: The better the new product performance, the better the organizational performance.…”

Section: The Relationship Between New Product Performance and Organizmentioning

confidence: 99%

The Impact of Market Orientation, Product Advantage, and Launch Proficiency on New Product Performance and Organizational Performance

Langerak¹,

Hultink²,

Robben³

2004

J of Product Innov Manag

406

446

View full text Add to dashboard Cite

Some scholars have suggested recently that a market-oriented culture leads to superior performance, at least in part, because of the new products that are developed and are brought to market. Others have reinforced this wisdom by revealing that a market-oriented culture enhances organizational innovativeness and new product success, both of which in turn improve organizational performance. These scholars do not reveal, however, through which new product development (NPD) activities a market-oriented culture is converted into superior performance.To determine how critical NPD activities are for a market-oriented firm to achieve superior performance, our study uses data from 126 firms in The Netherlands to investigate the structural relationships among market orientation, new product advantage, the proficiency in new product launch activities, new product performance, and organizational performance. We focus on product advantage-because product benefits typically form the compelling reasons for customers to buy the new productand on the launch proficiency-as the launch stage represents the most costly and risky part of the NPD process. Focusing on the launch stage also is relevant because it is only during the launch that it will become evident whether a market orientation has crystallized into a superior product in the eyes of the customer.The results provide evidence that a market orientation is related positively to product advantage and to the proficiency in market testing, launch budgeting, launch strategy, and launch tactics. Product advantage and the proficiency in launch tactics are related positively to new product performance, which itself is related positively to organizational performance. Market orientation has no direct relationship to new product performance and to organizational performance.An important implication of our study is that the impact of a market orientation on organizational performance is channeled through the effects of a market orientation on product advantage and launch proficiency; subsequently through the effects of product advantage and the proficiency in launch tactics on new product performance; and finally through the effect of new product performance on organizational performance. These channeling effects are much more subtle and complex than the direct relationship of market orientation on organizational performance previously assumed. Another implication of our study is that the impact of a market orientation on performance occurs through the launch activities rather than being pervasive to all organizational processes and activities. A reason for this finding may be that NPD is the one element of the marketing mix that

show abstract

Section: The Relationship Between New Product Performance and Organizmentioning

confidence: 99%

The Impact of Market Orientation, Product Advantage, and Launch Proficiency on New Product Performance and Organizational Performance

Langerak¹,

Hultink²,

Robben³

2004

J of Product Innov Manag

406

446

View full text Add to dashboard Cite

show abstract

“…In addition to product development, the overall instrument contained questions on marketing, manufacturing, finance and top management, which were used in other research projects (e.g. Terwiesch et al 1998). The product development part consisted of a group of general questions concerning product development practices of the business unit, and a subsection for each of two specific projects.…”

Section: Data Collectionmentioning

confidence: 99%

Measuring the Effectiveness of Overlapping Development Activities

1999

View full text Add to dashboard Cite

Overlapping development activities is widely used to reduce project completion times in product development. However, research on the applicability of the concept in different technological environments remains scarce. So far, very few industry-specific studies have statistically confirmed an accelerating effect of overlap. In the present article we statistically measure the effectiveness of overlapping development activities in reducing project completion time. Building on analytical research in operations management, we argue that this effectiveness differs with the organization's capability to resolve uncertainty early in the process. Projects benefit more from overlap if they are able to resolve uncertainty early. This contingency view to overlapping development activities is tested based on data from 140 completed development projects across several global electronics industries. Operations Management, we argue that this effectiveness differs with the organization's capability to resolve uncertainty early in the process. Projects benefit more from overlap if they are able to resolve uncertainty early. This contingency viewto overlapping development activities is tested based on data from 140 completed development projects across several global electronics industries.

show abstract

“…Griffin (1997) also reported that new products launched in firms in the last 5 years contributed to 49% of their revenue, and that new product performance has increased dramatically from 30% to 70% of firms' profitability variance, based on the market context (Terwiesh et al, 1998). Therefore, we propose the following hypothesis:…”

Section: New Product Performance and Marketing Performance Of Contracmentioning

confidence: 91%

The role of product lean launch in customer relationships and performance in the high-tech manufacturing industry

Kou

Lee

Wei

2015

International Journal of Operations &Amp; Production Management

View full text Add to dashboard Cite

Access to this document was granted through an Emerald subscription provided by emerald-srm:263496 [] For AuthorsIf you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. IntroductionOutsourcing strategy plays a critical role in the high-tech industry. Gottfredson et al. (2005) suggested that firms focus on their core competencies and outsource other value added activities to suppliers. Consequently, firms used outsourcing to integrate activities based on the value chain for product development and relied on suppliers for outsourcing services to obtain competitive advantage (Nixon and Woo, 2003) and save on costs (Chalos and Sung, 1998). Brand customers 1 such as HP, Dell, Sony, and Acer, outsource research and development (R&D) and manufacturing to contract manufacturers 2 to obtain a stronger competitive advantage.Most new product literature for the past 2 decades has focused on the relationships among environmental factors, new product development (NPD) activities, and new product success (Calantone and Di Benedetto, 1998;Parry and Song, 1994). Meta-analysis has shown that only 4% of research articles on new product development have focused on product launch (Montoya-Weiss and Calantone, 1994). According to a recent review study 1 Brand customer:A Brand customer is defined as a Branded electronics buyer (international large OEM customer or ODM customer) in this study. 2 Contract manufacturer: A contract manufacturer is defined as a supplier having an original equipment manufacturer (OEM) or original design manufacturer (ODM) business in this study. Downloaded by University of Mississippi At 22:00 28 June 2015 (PT) 2 (Calantone and Di Benedetto 2007), approximately two dozen papers specific to launchissues have been published in the marketing and innovation literature, mostly within the last decade. New product launch is relatively expensive, risky, and lengthy in the entire NPD process (Bowersox et al., 1999). The high investment exerted in R&D for new products might be more exceptional and advantageous than other competitors, but unsuccessful because of poor product launch (Lee and O'Connor, 2003). One empirical product launch study provided evidence that integrated marketing communication is vital to new high-tech product launches (Win...

show abstract

When product development performance makes a difference: A statistical analysis in the electronics industry

Cited by 41 publications

References 33 publications

The Impact of Market Orientation, Product Advantage, and Launch Proficiency on New Product Performance and Organizational Performance

The Impact of Market Orientation, Product Advantage, and Launch Proficiency on New Product Performance and Organizational Performance

Measuring the Effectiveness of Overlapping Development Activities

The role of product lean launch in customer relationships and performance in the high-tech manufacturing industry

Contact Info

Product

Resources

About