New Product Innovation in Established Companies: Associations with Industry and Strategy Variables

Abstract

As concern over the competitiveness of the U.S. persists, attention is given to understanding the factors associated with product innovation. To date, the bulk of research has focused on the organizational variables (e.g., formal structure) that spur or impede a company's new product development and introduction efforts. The present study extends the literature by examining the relationship of a firm's industry characteristics and the content of its competitive strategy, and the number and timing of new product introductions. Data from 134 established manufacturing companies (i.e., firms that have been in existence for more than eight years) show that a firm's Industry characteristics and competitive strategy explain a significant portion of variance in both the number and early introduction of new products. The implications of the results for managerial action and future research are also discussed.