Browsing by Subject "New product development"

Now showing 1 - 3 of 3

Open Access
Examining proactive strategic decision-making flexibility in new product development
(Wiley-Blackwell Publishing, 2012) Kandemir, D.; Acur, N.
While strategic flexibility is widely accepted as a prerequisite for a firm's success, its application in strategic decision making to a firm's new product development (NPD) activities is limited to only a few studies. Furthermore, many organizations still have difficulties creating proactive strategic flexibility in their decision-making processes. Past research studies have largely ignored the relationship between strategic decision-making flexibility and firms' resources and/or capabilities and success in the context of NPD. This study advances strategic flexibility by adopting the proactive approach of NPD decision-making flexibility and by examining its role in translating organizational resources and capabilities into NPD success. This study draws upon the resources, capabilities (i.e., flexibility), and performance framework to show how proactive strategic decision-making flexibility plays a crucial role in developing new products that can create new opportunities and comply with market needs. Therefore, this research aims to (1) develop an operational definition of strategic decision-making flexibility and (2) propose a framework to understand the drivers and the subsequent new product performance outcomes of strategic decision-making flexibility. This study adopts the proactive perspective of strategic decision-making flexibility and defines it as a capability that enables firms to develop NPD strategies to respond to future changes in the environment. The analysis, based on data collected from 103 European firms, shows that that the effects of long-term orientation, strategic planning, internal commitment, and innovative climate on proactive strategic decision-making flexibility are significant. The findings indicate specifically the roles of both champions and gatekeepers, who infuse a firm's knowledge with a clear understanding of its resources, constraints, and market needs, thereby enhancing decision makers' motivation to behave proactively to precipitate transformation. The results also reveal a positive association between proactive strategic decision-making flexibility and NPD performance outcomes. As such, strategic flexibility provides firms with an ability to adapt to changing environments and to create new market opportunities, product, and technological arenas, and to deliver successful new products. When firms open new market, technological, and product arenas, they can easily foresee their new demands and changes and successfully deliver new products, meeting customer needs/demands, and offering benefits such as quality, cost, and timeliness. This study therefore provides a valuable reference point for future research in strategic decision-making flexibility in NPD.
Embargo
Integrating efforts for product development and market penetration
(Elsevier BV, 2023-07-16) Demirci, Ece Zeliha; Erkip, Nesim
In this paper, we build a decision model to explore an innovative firm’s budget allocation problem, which needs to be solved for each successive generation of a product. The firm introduces the product to the market through a distributor while aiming to maximize the market potential. This goal can be achieved by investing in R&D and increasing availability using subsidies registered to the distributor. We analyze the problem using a game theoretical model and provide a guideline for the funding strategy. We show that the optimal budget allocation decision is characterized by two budget thresholds and a threshold on the cost efficiency of R&D. We identify and analyze the effects of two significant parameters, total available budget and efficiency level of R&D, on the optimal solution. In addition, we assess the model’s applicability by examining the expected excess budget requirement and the distributor’s expected profit. We provide valuable managerial insights on when and how to prioritize the two components of the budget.
Open Access
Strategic alignment and new product development: drivers and performance effects
(Wiley-Blackwell Publishing, 2012) Acur, N.; Kandemir, D.; Boer H.
Strategic alignment is widely accepted as a prerequisite for a firm's success, but insight into the role of alignment in, and its impact on, the new product development (NPD) process and its performance is less well developed. Most publications on this topic either focus on one form of alignment or on one or a limited set of NPD performance indicators. Furthermore, different and occasionally contradictory findings have been reported. NPD scholars have long argued for the importance of fit between context and NPD activities. However, this body of literature suffers from the same weakness: most publications have a limited scope and the findings are not always consistent with results reported previously. This study addresses these deficiencies by examining (1) the effects of various internal and external factors on different forms of alignment, and (2) the effects of these forms of alignment on a set of NPD performance indicators. Strategic planning and innovativeness appear to affect technological, market, and NPD-marketing alignment positively. Environmental munificence is negatively associated with NPD-marketing alignment, but has no effect on the two other forms of alignment. Technological change has a positive effect on technological alignment, a negative effect on NPD-marketing alignment, but no effect on market alignment. These findings suggest that internal capabilities are more likely to be associated with the development of strategic alignment than environmental factors are. Furthermore, technological and NPD-marketing alignment affect NPD performance positively, while market alignment does not have any significant performance effects.