The authors develop a model of investor reactions to new product development (NPD) failures in high technology firms. They propose that a firm’s financial and managerial capabilities, and its strategic focus on R&D, influence investors’ perceptions of the firm’s market value after NPD failure and that these effects are contingent on the development stage of the failed product. Using data …
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Berbagi pengetahuan memainkan peran penting dalam merangsang munculnya ide-ide dalam organisasi, menjadikannya komponen penting untuk mendorong inovasi. Makalah ini bertujuan untuk mengkaji dampak pandemi COVID-19 terhadap pertukaran pengetahuan dalam inovasi/pengembangan produk melalui penyajian kerangka konseptual yang komprehensif dan hipotesis praktis. Studi ini menyelidiki dan mengevaluasi…
Chairman and CEO M. Douglas Ivester stumbles when he tells a Brazilian newsmagazine about a new Coke vending machine that can automatically raise prices in hot weather. Reaction around the world is swift and negative..Printed journal
New products fail in the marketplace because they do not appeal to customer preferences. Therefore, knowledge of customer preferences about new products is a prerequisite for new product success. The development of such knowledge is made difficult by the fact that customer preferences evolve through customers' engagement with new product ideas, concepts, and prototypes. Consequently, to develop…
Although the returns of customer participation on new product development (NPD) performance can vary substantially, the current literature lacks a systematic conceptual and empirical integration showing when customer participation is valuable in enhancing NPD performance. Building on knowledge management theory, the authors present a conceptual framework that synthesizes a variety of contingenc…
Although a firm's innovation performance has been commonly attributed to its innovative capability, in a study of 102 Chinese automobile assemblers, we find that employees' collective motivation for new product development (NPD) is more important than NPD capability in determining firms' innovation performance. This finding suggests that researchers need to simultaneously consider both unit-lev…
Our study demonstrates empirically that the choice of resource allocation strategy affects innovation performance. Allocating resources to a broader range of innovation projects increases new product sales, an effect that appears to outweigh that of resource intensity. In addition, we find that the performance benefit of breadth is higher for firms that allocate resources selectively at later s…
In light of increasing licensing, we challenge the common assumption that product development and technology licensing are substitutes. We develop a resource-based framework, which distinguishes a firm's technological resource base and technology exploitation processes. We further combine survey, patent, and financial data of 228 medium-sized and large industrial companies to examine the intera…
This study explores the contingencies relating firm experience to product development capabilities, focusing on experience type (breadth versus depth) and timing (prior versus concurrent). Results from empirical tests in the U.S. mutual fund industry offer two primary findings. First, firms increase proficiency at adapting their processes to address new opportunities as they accumulate experien…
When is open innovation superior to closed innovation? Through a formal simulation model, we show that an open approach to innovation allows the firm to discover combinations of product features that would be hard to envision under integration. However, when partners have divergent goals, open innovation restricts the firm's ability to establish the product's technological trajectory. The resol…
Beginning with seminal research on organizational learning and continuing with the exploration versus exploitation and regional economics literatures, knowledge search has become central to innovation research. Drawing from these contributions, we examine the impact of a firm's geographic location munificence on benefits received either from exploiting its local knowledge base or from exploring…
In the fall of 2007, Cisco Systems announced an external innovation competition called the I-Prize. Our goal was to find an idea that would spawn a new billion-dollar Cisco business. We believed that by opening ourselves to the wider world we could harvest ideas that had so far escaped our notice and in the process break free from company-centric ways of looking at technologies, markets, and ou…
Traditionally, innovation in firms has been assessed by input measures in the process of creating new products. What has been missing in the broad, multidisciplinary field of innovation is research examining how productive firms have been at transforming these inputs into innovation outputs: radical new products that can be commercialized and help build a firm's future. That is, until now. A ne…
Systems are composed of complementary products (e.g., video game systems are composed of the video game console and video games). Prior literature on indirect network effects has argued that in system markets, sales of the primary product (often referred to as "hardware") largely depend on the availability of complementary products (often referred to as "software"). Mathematical and empirical a…
Although cross-functional integration is often considered an important element in a successful new product development program, a great deal of variance exists in extant literature regarding how integration is defined and implemented and how relevant studies are conducted. The authors attempt to bring clarity to a diverse set of 25 studies that investigate cross-functional integration by empiri…
A firm planning market entry can attempt to develop a product that is either similar to the incumbent's existing offering (imitation) or entirely novel (innovation). The authors establish that when the incumbent is more aggressive in research and development (R&D), this negatively affects the entrant's marginal return on R&D. Thus, if greater profits produce a strong (weak) desire for the incum…
This article focuses on how the customer portfolios of technology-based entrepreneurial firms affect new product development. Drawing on knowledge-based, resource dependence, and relational theories, the authors argue that the impact of a firm's customers on new product development depends on the size and relational embeddedness of the customer portfolio and the extent to which the firm is depe…
To address the trade-off between new product innovativeness and speed to market caused by customer participation activities, the author differentiates two dimensions of customer participation - customer participation as an information resource (CPI) and customer participation as a codeveloper (CPC) - and explores the moderating effects of downstream customer network connectivity and new product…
This article argues that Stage-Gate controls have the potential of restricting learning in a new product development project and thus hurting the performance of novel new products. Specifically, the authors examine whether control on new product development exercised through rigorous gate review criteria increases project inflexibility, which in turn leads to increased failure to learn. They al…