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New product launch actions and firm performance: The effects of breadth, complexity and heterogeneity

Yang Liu (School of Management, University of Science and Technology of China, Hefei, China)
Peng Cheng (School of Management, University of Science and Technology of China, Hefei, China)
Dingtao Zhao (School of Management, University of Science and Technology of China, Hefei, China)

Chinese Management Studies

ISSN: 1750-614X

Article publication date: 2 February 2018

Issue publication date: 22 March 2018

Abstract

Purpose

This paper aims to examine the effect of new product launch actions and firm reputation on firm performance in the Chinese auto industry.

Design/methodology/approach

This analysis adopts empirical data from 66 auto firms in China’s auto market from 2007 to 2012 to explore how new product launch actions undertaken by a firm can contribute to achieving superior performance and to investigate the relationships between new product launch actions and firm performance. Moreover, how firm reputation interacts with new product launch actions to affect firm performance is also investigated. Fixed effects regression model following the Hausman specification test was used to quantitatively examine the relationship.

Findings

It was concluded that the focal firm’s new product launch actions, including new product launch breadth, complexity and heterogeneity of its new repertoire of product launch actions, and firm reputation can impact its performance. Firm reputation can impact the signaling process and the capability of firms to enhance their performance via new product launch movements.

Originality/value

This research contributes to new product launch research by providing a more comprehensive view of competitive dynamic actions by which a firm’s performance is strengthened by examining the effects of two factors that affect performance. These factors are as follows: the characteristics in terms of breadth, complexity, and heterogeneity of new product launch actions undertaken by a firm and the characteristic of firm reputation.

Keywords

Acknowledgements

This research was funded by the National Natural Science Foundation of China (71642005, 71373250 and 71702180).

Citation

Liu, Y., Cheng, P. and Zhao, D. (2018), "New product launch actions and firm performance: The effects of breadth, complexity and heterogeneity", Chinese Management Studies, Vol. 12 No. 1, pp. 79-105. https://doi.org/10.1108/CMS-06-2017-0156

Publisher

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Emerald Publishing Limited

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