Formalizing organizational product deletion through strategic cross-functional evaluation: A Bayesian analysis approach

Abstract

Product deletion is a strategic organizational decision. Using multiple literature streams, we identify antecedents and relationships of product deletion across four functional areas—marketing, supply chain, finance, and sustainability. Using a field data sample from eight organizations, we apply Bayesian analysis to identify various relationships between product deletion across various functional performance measures. We complete additional simulation analyses using two dependent variable distribution methods (balanced and unbalanced) and validate using parametric logistic regression methodology for robustness checks. The results show predictive relationships exist amongst the functional performance measures and product deletion. High performance across organizational functions results in decreased odds of product deletion; but not as large a margin as expected. If improved product performance is identified across all functions especially cost dimensions, the likelihood of product deletion decreases. Amongst these functions, surprisingly supply chain performance is a better indicator of a product's candidacy for deletion. The integrative findings are exploratory but provide insights for further research development and practical implementation.