Industry Implications of Value Creation and Appropriation Investment Decisions

As managers weigh their resource investment decisions, we argue that these investments have a direct impact on the growth and volatility of the firm’s industry. With data covering 377 industries across 16 years, we investigate relationships for aggregate firm investments on the growth and volatility of industry profit and sales. Results reveal important, complex relationships between investment in value creation and appropriation and different elements of the industry environment

Performance Implications of Firm Resource Interactions in the Acquisition of R&D-Intensive Firms

We explore the role of resource interactions in explaining firm performance in the context of acquisitions. Although we confirm that acquisitions do not lead to higher performance on average, we do find that complementary resource profiles in target and acquiring firms are associated with abnormal returns. Specifically, we find that acquiring firm marketing resources and target firm technology resources positively reinforce (complement) each other; meanwhile, acquiring and target firm technology resources negatively reinforce (substitute) one another. Implications for management theory and practice are identified

Product Development Team Stability and New Product Advantage: The Role of Decision-Making Processes

Innovation scholars have long touted the value of cross-functional teams, and though firms have embraced a cross-functional design in their new product development (NPD) teams, these teams continue to face challenges. Stability in an NPD team may offer important advantages for decision making; however, its effectiveness as a structural coordination mechanism remains largely unexplored. Therefore, to offer insight into the value of NPD team stability, the authors develop a process-based model that examines the extent to which stability influences certain decision-making processes, which in turn influence new product advantage. They examine these relationships with a sample of cross-functional NPD project teams from 208 high-technology firms. The results reveal that the degree of stability in an NPD project team has a curvilinear relationship to team-level debate and decision-making comprehensiveness. In turn, whereas debate is positively related to decision comprehensiveness, decision comprehensiveness is positively related to new product advantage only at high levels. These curvilinear patterns shed light on anecdotal evidence that currently attributes success to both stable and unstable project teams

Green Claims and Message Frames: How Green New Products Change Brand Attitude

In response to a top ten global consumer trend, firms are increasingly introducing environmentally sustainable (“green”) new products. Firms allocate significant resources to this area; thus, the authors consider the brand-level implications by investigating how the introduction of green new products changes attitude toward the brand. In examining this relationship, they draw from social identity and framing theories to investigate drivers of green new product introductions as well as the moderating effects of message framing, source credibility, and product type. Estimating a three-stage least squares model based on new product introductions from 75 brands across a four-year time period (2009–2012), the authors find that green new product introductions can indeed improve brand attitude and that both the brand and category's positioning influence the introduction of green new products. They also find that the quantity of green messages, the product type, and their source credibility influence the extent to which green new products change brand attitude. The authors use these findings to provide guidance for managers as they attempt to effectively link their green innovation efforts to improve consumer attitudes toward their brands. </jats:p

THE PDMA Handbook of New Product Development, -3/E

New Product Development is one of the most important challenges facing organizations today. The Product Development and Management Association (PDMA) Handbook of New Product Development 3rd Edition provides an exceptional review of cutting edge topics for both new and experienced product development leaders. It offers a comprehensive and updated guide to the practices, processes and tools critical to achieving and sustaining new product/service development success in today’s world, delivering valuable information about the fundamentals as well as emerging practices such as venturing, virtual product development and the use of social media in NPD. As the premier global advocate for professionals and organizations working in the fields of new product/service development, PDMA has assembled in the Handbook unique content on the critical aspects of product development success including its 2012 Best Practices Research, Lessons Learned from its Outstanding Corporate Innovator Award Winners and keys to success from organizations with proven innovation track records. The 3rd Edition is an essential reference for anyone with responsibility for product development activities, from novices looking for fundamentals to experts seeking insights on emerging concepts, and is relevant for all functions and all product/service industries