An empirical study of firms' co‐ordination of functional and market entry timing strategies

Abstract

For new product introductions, firms may pursue one of several market entry timing strategies. The firm could be a pioneer, a “fast‐follower” or one that introduces products during “late growth” or the “maturity” stage of the product life cycle (PLC). The literature suggests that successful product introduction relies upon the firm's ability to match and co‐ordinate functional, including organizational, capabilities in accordance with its new product timing strategy. There, however, exists little empirical research on inter‐functional relationships in the new product timing decision. This study examines the functional strategies of a cross‐section of UK firms with regard to timing of market entry of new products. The results suggest that there is tighter coordination of functional strategies for entry associated with introductory and maturity than with growth stages of the PLC. Questions are also raised concerning the firm's functional development behaviour.