Performance Of New Products Research Articles

The economic potential for area‐yield crop insurance: An application to maize in Ghana

AbstractRainfall index insurance can enable farm households to manage production risk, but demand in developing countries remains low at market prices, in part because the insurance trigger may not correlate well with individual farm losses. Area‐yield crop insurance, which links payouts to average yield in a geographic zone, attempts to increase demand by more accurately targeting insurance payouts to production shortfalls. However, shifting from an exogenous weather‐based to an endogenous yield‐based index introduces concerns of asymmetric information, which can lead to market failures that constrain supply from providers. These features are inversely related: larger insurance zones inhibit index manipulation, but average yield is less informative about any individual plot. We quantify this tradeoff for maize in Ghana using a spatial yield model calibrated to match observed production. Insurers must demarcate zones of no more than 5000 farmers for area‐yield insurance to outperform weather insurance. The framework presented in this paper allows assessment of the relationship between index performance and asymmetric information in new crop insurance products.

Assessing supply chain management’s impact on new product performance: the mediating role of marketing innovation orientation during COVID-19

PurposeThe main purpose of this study is to examine the influence of two characteristics of supply chain management (SCM) (resilience and integration) on new product performance (NPP) via the mediation of marketing innovation orientation.Design/methodology/approachThis study was designed by the quantitative method, and the research model was developed based on the resource-based view (RBV) theory of 211 managers from Israeli firms using SmartPls3 software.FindingsThe main finding that emerges from this study is that marketing innovation orientation serves as a full mediator in the relationship between supply chain resilience (SCR) and NPP as well as in the relationship between supply chain integration (SCI) and NPP. Thus, companies that wish to achieve a competitive advantage over their rivals should improve and strengthen their marketing innovation orientation. By doing so, they enhance the relationship between SCM and NPP.Practical implicationsThe findings provide an applicable guideline for marketing managers. Managers should be ready to adapt to customers’ demands, environmental changes and, most importantly, disruptive events in a dynamic environment.Originality/valueThe current study sheds light on the mechanism for NPP via integrating suppliers, customers and the organization. So, managers should adopt SCR and integration to strengthen their marketing innovation orientation in order to achieve NPP.

Exploring new product development team problem-solving creativity in the base of the pyramid B2B firms

PurposeThis study aims to investigate the role of team problem-solving creativity in new product development (NPD) in the bottom-of-the-pyramid (BoP) in business-to-business firms. This study synthesizes perspectives from NPD, creativity and leadership to examine how work-related factors such as NPD managers’ role ambiguity and individual-related factors such as CEO’s ambidextrous leadership style interact to determine team problem-solving creativity and its effect on new product performance (NPP).Design/methodology/approachThe hypotheses are tested using data from a multi-informant survey of 274 middle-level managers within 137 local BoP manufacturing firms in a sub-Saharan African country.FindingsThe results show that an NPD team’s ability to solve problems creatively determines NPP in BoP markets. The findings also show that NPD managers’ role ambiguity has a negative effect on team problem-solving creativity. However, a CEO’s ambidextrous leadership neutralizes the negative impact of role ambiguity on problem-solving creativity.Originality/valueThis study combines three distinct streams of literature, including NPD, creativity and leadership, to explore the antecedents and outcomes of problem-solving creativity. Drawing on creativity and leadership theories, this study reports that the success of creative idea exchanges depends heavily on a supportive environment for NPD team members and minimizing the NPD manager’s role ambiguity.

Market Orientation's Neglected Role in Marketing Exploitation and Exploration Tradeoffs

The goal of marketing exploitation methods, sometimes referred to as marketing exploration, can be to increase the company's knowledge and capabilities or to improve its current capabilities. According to a study on organisational strategy and learning, using both strategies can compromise each company's operational processes and harm its financial success. Market organisation, in our opinion, facilitates the flow of market information between the two strategy processes, integrates the two strategies by acting as a dynamic market, and aids businesses in integrating marketing exploitation and exploration strategies. Using complementary high-level marketing exploration and marketing exploitation strategies, companies with strong market orientation can improve the financial performance of new products, as measured at two different points in time, according to a study of the packaged food industry in Indonesia. However, as the trade-off foresees, businesses with a poor market orientation are unable to benefit from these techniques.

Market Orientation's Neglected Role in Marketing Exploitation and Exploration Tradeoffs

The goal of marketing exploitation methods, sometimes referred to as marketing exploration, can be to increase the company's knowledge and capabilities or to improve its current capabilities. According to a study on organisational strategy and learning, using both strategies can compromise each company's operational processes and harm its financial success. Market organisation, in our opinion, facilitates the flow of market information between the two strategy processes, integrates the two strategies by acting as a dynamic market, and aids businesses in integrating marketing exploitation and exploration strategies. Using complementary high-level marketing exploration and marketing exploitation strategies, companies with strong market orientation can improve the financial performance of new products, as measured at two different points in time, according to a study of the packaged food industry in Indonesia. However, as the trade-off foresees, businesses with a poor market orientation are unable to benefit from these techniques.

Incidence of Interorganizational Relations in the Performance of New Products: Mediating Effect of the Innovation Capacity and Technological Dynamism

The present work responds to the need for literature on the incidence of interorganizational relations and the performance of new products in the context of tourist destinations. Specifically, the article analyzes the effect of market and technological dynamism on the relationship between interorganizational relations and the performance of new products in tourism companies. The empirical study is carried out on a sample of 300 companies located in Arequipa-Perú. Research results show that both innovativeness and technological dynamism enhance the link between interorganizational relationships and new product performance. Some theoretical implications for academics and also some practical implications for managers of tourism companies that carry out activities in the studied context are derived from the research.

Sustainability Fingerprint - guiding companies in anticipating the sustainability direction in early design

During the early phases of design of new products, information necessary to guide and assess sustainability is typically incomplete. Manufacturers risk discovering the unfavorable sustainability impact too late to redirect the development. The purpose of this study is to search and review methods to anticipate the sustainability performance of new products in the early stages of the innovation process, and, together with a case company in the aeroengine manufacturing business, to develop and propose a systematic approach to anticipate sustainability performance. Following a literature review of 51 methods and research-based proposals, only five covered the social-, ecological-, and economic sustainability dimensions in the early phases of product development. Through an action research-based approach, a qualitative sustainability measurement tool, the Sustainability Fingerprint tool, was developed. This tool allows the development team in a company to systematically derive a sustainability performance from a set of criteria unique to the targeted product and/or product portfolio that is to be designed, from a set of scientifically well-established sustainability principles. The tool was applied in six different industry cases at the company, by the design teams and independent of any influence of the researchers. Semi-structured interviews were conducted to learn about the usefulness, usability, and applicability of the tool. It was concluded that the Sustainability Fingerprint tool has no equivalent in the literature and was considered useful for the case company during early phase design for two main reasons. Firstly, the tool is tailor-made with defined company-specific sustainability criteria that represent the most important sustainability aspects to assess. Secondly, the support tool can be used also in later phases, thereby supporting a continued innovation process. It allows designers to anticipate a sustainability performance of the solution in: the development of sustainable innovations; comparison and down-selection of alternative solutions; sustainability assessments of the product portfolio to identify improvement measures; and sustainability assessment of current products to identify sustainability hotspots. Further research will include companies from other industrial sectors and will focus on adding digital support, improved practical instructions, and, integration to existing processes and established support tools in companies today.

Crowdfunding performance, market performance, and the moderating roles of product innovativeness and experts' judgment: Evidence from the movie industry

AbstractReward‐based crowdfunding (CF) has emerged as a method to solicit funds for innovative projects. Yet, little is still known about the ability of reward‐based CF to act as a signal in the eyes of future consumers, and thus boost the future market performance of new products that innovators intend to commercialize using the campaign funds. In addition, scant research has clarified the boundary conditions that can magnify or weaken the efficacy of this CF signal. Given the relevance of reward‐based CF for supporting innovation, understanding when the CF campaign performance works as an effective signal is of great interest, especially in business settings characterized by high product quality uncertainty. By using the movie industry as a setting, we contribute to fill this gap. Specifically, we argue that the positive effect of the reward‐based CF performance is moderated by two important factors influencing consumers' purchase decisions: the degree of product innovativeness and the expert judgment about the product. Elaborating on the effects of product innovativeness, we posit that this product feature should moderate the positive relationship between CF and subsequent market performances in an inverted U‐shaped fashion. Favorable expert recommendations, on the other hand, should weaken the efficacy of the CF performance as a signal. Results from a sample of 1059 new movies (of which 152 released in theaters) confirm these predictions and offer several remarkable implications for innovators.

Influence of big data analytical capability on new product performance – the effects of collaboration capability and team collaboration in high-tech firm

PurposeAs the application of artificial intelligence (AI) becomes more prevalent, many high-tech firms have employed AI applications to deal with emerging societal, technological and environmental challenges. Big data analytical capability (BDAC) has become increasingly important in the AI application processes. Drawing upon the resource-based view and the theory of planned behavior, this study aims to investigate how BDAC and collaboration affect new product performance (NPP). Practically, a harmonic working team is particularly important for creating management synergies, this empirical analysis demonstrates the importance of BDAC and collaboration for NPP.Design/methodology/approachThis paper focuses on the performance of firms that applied AI in their operations. This study collected data from firms in Greater China, including China and Taiwan, as Greater China is currently the leading manufacturer of semiconductor, electronic and electric products for AI applications in the manufacturing process. Confirmatory factor analysis and structural equation modeling is employed for statistical analysis.FindingsThe analytical results indicate that BDAC positively relates to collaboration capability (CC) in AI applications but not to team collaboration (TC). CC positively correlates with TC, and both CC and TC positively correlate with NPP. Further, the mediating effect was examined using the Sobel t-test, which reveals that CC is a significant mediator in the influence of BDAC on NPP.Practical implicationsThe strategic implementation of BDAC and collaboration can allow an enterprise to improve its NPP when driven by the external environment to use AI, which further enhances NPP. These processes indicate that AI and BDAC are both crucial for the success of a company’s collaboration and for effective management to improve NPP in the face of global competition.Originality/valueThis study introduces the concept of BDAC to explain the relationship between CC and TC, as they pertain to NPP. This study presented a discussion of the theoretical and practical implications of the research findings and could provide a framework for managing BDAC.

New technology product introduction strategy with considerations for consumer-targeted policy intervention and new market entrant

The emergence of new technology products brings systematic changes to the market, and appropriate responses to such changes are essential for the survival and success of firms. This study investigated producers' optimal new product introduction (and positioning) strategies in various situations that require different sets of decisions. Specifically, we considered the diffusion of hybrid electric vehicles and battery electric vehicles (BEVs) in the South Korean automotive market. A model incorporating the strategic, forward-looking behaviors of both producers and consumers was used to derive producer's optimal new product introduction plan based on long-term market forecasting. Then, we conducted simulation analyses to investigate the benefit of forward-looking planning and how optimal strategies change depending on the policy interventions and market entrance of the new producer. The results show that a forward-looking strategy could improve the market performance of new products by up to 40 % compared to the myopic strategy, and the plan adjustment of the incumbent in response to competition could reduce competition-related losses by up to 9 %. Finally, stronger policy intervention and new market competition will motivate producers to introduce more, less-expensive BEVs in their product portfolio. Such responses significantly expand the BEV market, which is also a socially desirable outcome.

Linking business intelligence with the performance of new service products: Insight from a dynamic capabilities perspective

There are ongoing predictions that business intelligence (BI) capabilities will lead to the improved performance of new service products (NSPs). However, theoretical and empirical research have yet to explain the nature of this contribution. Based on dynamic capability theory, the current research suggests a model explaining how BI capabilities could impact the performance of NSPs. Specifically, it suggests that BI capabilities could lead to better NSP performance by facilitating proximal conditions of NSP, including customer value anticipation capacity, NSP innovativeness capacity and new product speed to market capacity. The results, based on responses by 583 service firms’ marketing and sales directors, indicated that benefits from BI capabilities could be realised indirectly via their intermediate impact on proximal conditions, which in turn influence the outcome of the impact of variables on NSP performance. The contribution of this research is a better theoretical understanding and advanced managerial insight into practices on the use of BI as a tool to enhance NSP performance instead of relying on the prevailing anecdotal evidence.

Online Word of Mouth and the Performance of New Products

Online Word of Mouth and the Performance of New Products

Organizational Agility: Key to the Success of New Product Development

Organizational agility is the ability of an organization to transform its capabilities and resources to innovate new values or protect existing values that provide high return. Several studies have investigated the impact of organizational agility on the performance of organizations. However, few studies have explored the impact of the organizational agility of new product development (NPD) teams during the process of NPD on the performance of new products. Additionally, the process of increasing the effectiveness of organizational agility with innovativeness during the NPD process lacks empirical examination. Based on the concept of dynamic capabilities, this article presents a framework to explain the antecedents and consequences of the mediator (organizational agility of product development teams). The moderating role of innovativeness in the NPD process is also proposed. The findings reveal that the organizational agility is important to the firm's successful product innovation because it improves the effectiveness of the fuzzy front end (FFE) in the NPD process. The agility of the development team can be increased by top management support and learning organization. In addition, innovativeness positively moderates the effect of organizational agility on managing FFE. Altogether, these findings provide implications for proficiently managing FFE in the NPD process.

Learning from Failure, Collective Efficacy and New Product Performance

Although the virtues of the learning from failure in breeding innovation have been widely promoted, teams are still an under-researched objective when it comes to learning from failure. Moreover, much less is known about how team learning from failure affects innovation performance especially under the influence of collective cognition. Incorporating social learning theory and social cognitive theory, our study examines how experiential learning from failure (ELFF) and vicarious learning from failure (VLFF) affect new product performance (NPP) in new product development (NPD) teams. We further explore the moderating role of collective efficacy. Survey data from 152 paired NPD project teams in high-tech firms illustrates that both ELFF and VLFF facilitate NPP in terms of NPD speed to market and new product creativity. Further, a high level of collective efficacy intensifies the positive relationship between ELFF and NPD speed to market, but attenuates the positive relationship between VLFF and new product creativity. Our results illustrate that both ELFF and VLFF should be encouraged to promote innovation performance in the NPD team. However, the NPD team should hold a fine-grained view regarding the double-edged sword effect of collective efficacy on the relationship between learning from failure and NPP at the team level.

Cross-cutting best practices for new product development (NPD) in turbulent environments: the effects of integration and co-creation

PurposeContinuous understanding of the best practices associated with new product development is a constant research opportunity to advance knowledge in the field, as far as changes in the business environment and the increasing turbulence level in different market segments create and reposition the importance of practices over time.Design/methodology/approachBased on a systematic review, the study aimed to analyze the 100 most relevant articles published in international journals on new product development (NDP), identifying new patterns on the best practices for new product development and the types of relationship involved in NPD.FindingsAmong the several practices observed in the literature, the analysis point to a larger group of studies that converge on the identification of a positive and significant relationship in integration – simultaneously – between supplier, company, customers and strategic alliances and the performance of NPD.Research limitations/implicationsThese results support integration as a cross-cutting and structural best practice for NPD, as long as it is constituted as a capacity, mainly applied in highly turbulent environments. This approach supported the proposition of a new framework.Practical implicationsOrganizations will be able to implement the proposed framework to NPD strategy in order to prioritize resources in best practices, aiming to increase the performance of new product development.Social implicationsThe adoption of integration and co-creation practices for the development of new products expands the possibilities of economic and social development, based on the involvement of the actors in this network.Originality/valueThis model had not yet been proposed in the literature, filling a gap in the agenda for future studies.

Investigating the Role of Collaborative Innovation Networks and Customer Participation on New Product Performance Cinnagen Co

The impact of collaborative innovation networks on the process of corporate performance has attracted particular attention in recent years. Collaborative innovation networks comprise a collection of suppliers, customers, competitors, universities and research institutes. This study aimed to investigate the role of collaborative innovation networks and customer participation on the performance of new products of Cinnagen Co. Structural equation technique using the least squares method with Smart PLS software was used to analyze the data. The results show that there is no significant direct relationship between customer participation and new product development, but this variable has a direct and significant effect on the performance of the new product, mediated by attraction capacity variables and innovation capabilities. The results also show that collaborative innovation networks mediate innovation capabilities that influence new product performance.

Expect Success, Get Success

Overview: In new product development (NPD), practitioners and researchers have explored a variety of organizational factors, such as market orientation and firm innovativeness, that drive product success. They have not explored the role of expected outcomes on NPD. Using a social psychology perspective—a hitherto missing perspective in the NPD literature—we describe how expected outcomes can drive new product success. Specifically, we highlight how self-fulfilling prophecies are likely to impact the performance of new products favorably. Surprisingly, our results indicate that expected outcomes mediate the relationship between predicted product success and actual success, leading to improved new product performance. Introducing a social psychological perspective can impact how innovative firms accomplish new product success.

Modelling the Material Resistance of Wood—Part 1: Utilizing Durability Test Data Based on Different Reference Wood Species

To evaluate the performance of new wood-based products, reference wood species with known performances are included in laboratory and field trials. However, different wood species vary in their durability performance, and there will also be a within-species variation. The primary aim of this paper was to compare the material resistance against decay fungi and moisture performance of three European reference wood species, i.e., Scots pine sapwood (Pinus sylvestris), Norway spruce (Picea abies), and European beech (Fagus sylvatica). Wood material was collected from 43 locations all over Europe and exposed to brown rot (Rhodonia placenta), white rot (Trametes versicolor) or soft rot fungi. In addition, five different moisture performance characteristics were analyzed. The main results were the two factors accounting for the wetting ability (kwa) and the inherent protective properties of wood (kinh), factors for conversion between Norway spruce vs. Scots pine sapwood or European beech for the three decay types and four moisture tests, and material resistance dose (DRd) per wood species. The data illustrate that the differences between the three European reference wood species were minor, both with regard to decay and moisture performance. The results also highlight the importance of defined boundaries for density and annual ring width when comparing materials within and between experiments. It was concluded that with the factors obtained, existing, and future test data, where only one or two of the mentioned reference species were used, can be transferred to models and prediction tools that use another of the reference species.

Firm Specific Capability Organisational Structure and New Product Performance of Fast Moving Consumer Goods Manufacturers in Emerging Economy

Purpose: This study was centered on understanding the linkages between internal organizational competencies and performance of new products and the role of organizational structure focusing on Fast Moving Consumer Goods (FMCGs) manufacturers in the South-Western States in Nigeria.
 Methodology: A survey approach was adopted, and 529 employees of fifteen FMCGs took part in data gathering. A moderated regression analysis was used to test the hypotheses formulated
 Findings: The results of the moderated regression analysis established that firm-specific capability significantly enhanced new product performance, and the introduction of a definitive organizational structure increased the established effect firm-specific capability had on new product performance to suggest a significant moderator.
 Implications: Management of the FMCGs investigated need to strengthen their commitment to developing critical and dynamic firm-specific capability and understand the relevance of organizational structure appropriateness. The firms should possess the knowledge to deploy ambidextrous firm-specific capability; it would enable the firms to expand and explore market opportunities that facilitate achieving significant new product performance.

The mediation effects of team information processing on new product development success: revising the role of innovation orientation and team unlearning

PurposeAlthough previous studies noted the importance for organizations in establishing an innovation strategy, few have examined innovation orientation as a multidimensional knowledge configuration. Therefore, this study draws on the valuable theoretical underpinnings of the resource-based view and information processing theory to examine the mechanism through which an organization's innovation orientation (IO) and team unlearning (TU) can impact new product development (NPD) success.Design/methodology/approachA causal model was developed in order to analyze the role of innovation orientation and team unlearning on NPD success. This proposed model and several hypotheses were gauged using data from 255 NPD team members from Taiwanese high-tech and traditional companies.FindingsThe results indicate that both IO and TU relate to outcomes. Specifically, this study demonstrates that it is insufficient that firms simply establish the configurations needed to enhance their IO and TU, firms also need to find out the correct mechanism to enhance NPD success. The relationships between IO, TU and NPD success were fully mediated by team information processing.Originality/valueThis report sheds light on the importance of innovation orientation and team unlearning in today's NPD process and uncovers the underlying mechanism through which IO and TU contribute to NPD success. It also offers precise advice for the assessment of management of team information-processing to boost the performance of new products.