Development time and new product sales: A contingency analysis of product innovativeness and price

Opposing theories and conflicting empirical results with regard to the effect of development time on new product sales suggest the need for a contingency analysis into factors affecting this relationship. This study uses a unique combination of accounting and perceptual data from 129 product development projects to test the combined contingency effect of product innovativeness and new product price on the relationship between development time and new product sales. The results show that for radically new products with short development times, price has no effect on new product sales. When the development time is long, price has a negative effect on the sales of radical new products. The findings additionally show that price has no effect on sales for incremental new products with short development times and a negative effect for incremental new products with long development times. Together, these findings shed new light on the relationship between development time and new product sales

Successful new product development by optimizing development process effectiveness in highly regulated sectors: the case of the Spanish medical devices sector

Rapid development and commercialization of new products is of vital importance for small and medium sized enterprises (SME) in regulated sectors. Due to strict regulations, competitive advantage can hardly be achieved through the effectiveness of product concepts only. If an SME in a highly regulated sector wants to excell in new product development (NPD) performance, the company should focus on the flexibility, speed, and productivity of its NPD function: i.e. the development process effectiveness. Our main research goals are first to explore if SMEs should focus on their their development process effectiveness rather than on their product concept effectiveness to achieve high NPD performance; and second, to explore whether a shared pattern in the organization of the NPD function can be recognized to affect NPD performance positively. The medical devices sector in Spain is used as an example of a\ud highly regulated sector. A structured survey among 11 SMEs, of which 2 were studied also as in in-depth case studies, led to the following results. First of all, indeed the companies in the dataset which focused on the effectiveness of their development process, stood out in NPD performance. Further, the higher performing companies did have a number of commonalities in the organisation of their NPD function: 1) The majority of the higher performing firms had an NPD strategy characterized by a predominantly incremental project portfolio.\ud 2) a) Successful firms with an incremental project portfolio combined this with a functional team structure b) Successful firms with a radical project portfolio combined this with a heavyweight or autonomous team structure.\ud 3) A negative reciprocal relationship exists between formalization of the NPD processes and the climate of the NPD function, in that a formalized NPD process and an innovative climate do not seem to reinforce each other. Innovative climate combined with an informal NPD process does however contribute positively to NPD performance. This effect was stronger in combination with a radical project portfolio. The highest NPD performance was measured for companies focusing mainly on incremental innovation. It is argued that in highly regulated sectors, companies with an incremental product portfolio would benefit from employing a functional structure. Those companies who choose for a more radical project portfolio in highly regulated sectors should be aware\ud that they are likely to excell only in the longer term by focusing on strategic flexibility. In their NPD organization, they might be well advised to combine informal innovation processes with an innovative climate

Triggering the internationalization of Malaysian quantity surveying firms

Although there is an increasing trend of services being traded across borders, quantity surveying (QS) firms in the construction sector remain under-researched. The triggers for the increasing globalization of QS firms are not clear, nor how these triggers are perceived by managers at different levels. A questionnaire was administered in over 84 QS consultancy firms, and the results were analyzed using the repertory grid technique, allowing a comparison between the general respondents and a focus group of senior managers. The findings show that senior managers with significant experience realize the importance of a strong internal capability of the QS firm and the capability to develop innovative offerings, coupled with an awareness of the target market and the ability to secure revenue through key contracts. Firm- and location-specific factors were more important than other competitive advantages or foreign markets’ characteristics when deciding to globalize

Effect of exploitation and exploration on the innovative as outcomes in entrepreneurial firms

[EN] The main aim of this study is to establish the effect of the Exploitation and Exploration; and the influence of these learning flows on the Innovative Outcome (IO). The Innovative Outcome refers to new products, services, processes (or improvements) that the organization has obtained as a result of an innovative process. For this purpose, a relationship model is defined, which is empirically contrasted, and can explains and predicts the cyclical dynamization of learning flows on innovative outcome in knowledge intensive firms. The quantitative test for this model use the data from entrepreneurial firms biotechnology sector. The statistical analysis applies a method based on variance using Partial Least Squares (PLS). Research results confirm the hypotheses, that is, they show a positive dynamic effect between the Exploration and the Innovative as outcomes. 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Linking Employee Stakeholders to Environmental Performance: The Role of Proactive Environmental Strategies and Shared Vision

Drawing on the natural-resource-based view (NRBV), we propose that employee stakeholder integration is linked to environmental performance through firms’ proactive environmental strategies, and that this link is contingent on shared vision. We tested our model with a cross-country and multi-industry sample. In support of our theory, results revealed that firms’ proactive environmental strategies translated employee stakeholder integration into environmental performance. This relationship was pronounced for high levels of shared vision. Our findings demonstrate that shared vision represents a key condition for advancing the corporate greening agenda through proactive environmental strategies. We discuss implications for the CSR and the environmental management literatures, with a particular focus on the NRBV and stakeholder integration debates

Innovation capability and its role in enhancing the relationship between TQM practices and innovation performance

Innovation plays a critical role in predicting the long-term survival of organizations, determining an organization’s success and sustaining its global competitiveness, especially in an environment where technologies, competitive position and customer demands can change almost overnight, and where the life-cycle of products and services are becoming shorter.Therefore, the main purpose of this paper is to extend the existing knowledge as to the relationship between TQM practices and innovation performance by exploring the expected role of innovation capability as mediator to enhance this relationship.At the same time, this study attempted to shed a light on how to improve innovation performance of manufacturing companies in Malaysia.The gained results indicated that innovation capability mediates the relationship between TQM practices and innovation performance. More importantly, this study supports the findings of the past studies that questioned the role of TQM practices in improving innovation performance. Finally, in light of the obtained results, several recommendations were introduced to assist decision makers in manufacturing companies

Artificial neural network decision support systems for new product development project selection

The authors extend and develop an artificial neural network decision support system and demonstrate how it can guide managers when they make complex new product development decisions. The authors use data from 612 projects to compare this new method with traditional methods for predicting various success outcomes for new product projects

The use of discrete variable selections for credit evaluations

A discriminant model for evaluation of loan applicants by bank managers should be capable of handling a wide variety of data in a parsimonious manner. Frequently the data will be discrete, and not easily converted to continuous form. Furthermore, missing data may be a problem. This paper examines the use of a discrete discriminant analytic technique in credit screening in a rural setting. The efficiency of the model is evaluated with regard to both rate and costs of misclassification.

Marketing and technology resource complementarity : An analysis of their Interaction Effect in two environmental contexts

The dynamic capabilities perspective posits that a firm can leverage the performance impact of existing resources through resource configuration, complementarity, and integration, but little empirical research addresses these issues. We investigate the effects on performance of marketing capabilities, technological capabilities, and their complementarity (interaction), and whether these effects are moderated by low vs. high technological turbulence. Results from SEM two-group analyses (with controls) show that both main effects positively impact performance in both environmental contexts. However, (1) their interaction effect is significant only in the high-turbulence environment; (2) the marketing-related main effect is lower in the high-turbulence environment; and (3) the main effects of technology-related capabilities are the same in both environments. Our research suggests that the synergistic performance impact of complementary capabilities can be substantive in particular environmental contexts: while synergistic rents cannot always be obtained, it is possible to leverage existing resources through complementarit