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Dynamic capabilities to match multiple product generations and market rhythm

Scott G. Dacko (Warwick Business School, The University of Warwick, Coventry, UK)
Ben S. Liu (Quinnipiac University, Hamden, Connecticut, USA)
D. Sudharshan (Gatton College of Business and Economics, University of Kentucky, Lexington, Kentucky, USA)
Olivier Furrer (Nijmegen School of Management, Radboud University Nijmegen, Nijmegen, The Netherlands)

European Journal of Innovation Management

ISSN: 1460-1060

Article publication date: 3 October 2008

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Abstract

Purpose

The purpose of this paper is to provide greater insights to managers seeking to time properly the launches of innovative new products (NPs) across multiple generations. This paper aims to address the rhythm matching problem by developing a typology and a conceptual framework of the interaction between a firm's technological readiness to launch NPs and a market's receptivity in influencing a firm's long‐term performance.

Design/methodology/approach

Based on the new product development (NPD) and diffusion of innovation literatures, the paper develops a model explicitly to address the rhythm matching problem by highlighting the interaction between a firm's technological readiness to launch new products and a market's receptivity in influencing a firm's long‐term performance. The logic of this model may be described as follows: long‐term performance is a function of matching: products to customer needs, marketing mix dynamics to customer segments and buying behavior dynamics, and logistics, supply chain management, and inventory to market dynamics and financial efficiency; uncertainty in: knowledge of needs, market segments and their dynamics, and market dynamics is all a function of time, as is financial efficiency. Therefore, a firm's long‐term performance is a function of these matches over time.

Findings

Deriving from the proposed model and typology, it was found that in independent rhythm windows, the management focus is on a single generation and each successive generation can be planned independently. In market‐imposed windows, firms aim at adapting their own NP readiness rhythm to the market receptivity rhythm. In firm‐imposed windows, firms have the initiative to drive the market receptivity rhythm. In dynamically resultant windows, everything is more complicated because firms' NP readiness rhythm and market receptivity rhythm influence each other.

Originality/value

The model and typology developed in this paper are a breakthrough result of synthesizing various traditions of NPD and diffusion of innovation research. It is believed that the paper provides a rich conceptual framework drawing together extant research on the development and introduction of new products. The framework is intended both to explicitly inform managers of the importance of rhythm matching as well as to the factors that influence such matching. It is also intended to provide a lens with which further research can be directed to increase the efficiency and effectiveness of resource utilization in NPD and the long‐term success of the firms.

Keywords

Citation

Dacko, S.G., Liu, B.S., Sudharshan, D. and Furrer, O. (2008), "Dynamic capabilities to match multiple product generations and market rhythm", European Journal of Innovation Management, Vol. 11 No. 4, pp. 441-471. https://doi.org/10.1108/14601060810911110

Publisher

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Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited