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Signals, e.g. information released by firms about new products attract the attention and scrutiny of customers, competitors and other stakeholders. In product management, an important area of research focuses on the economic value of such signals. However, extant studies consider valuation effects of product signals independently, and largely ignore how the value of a product signal at launch depends upon prior preannouncements. This study aims to investigate how the dependence of new product development (NPD) signals on past preannouncements affects firms’ security prices.

The study develops a conceptual model that draws upon information asymmetry theories, i.e. signaling and agency theory to hypothesize the effect of firms’ product introduction announcements on security prices given two antecedent preannouncement types (costless and costly signals). Hypotheses are tested by conducting an event study analysis on a sample of 149 matched observations (product introduction announcement preceded by a certain type of preannouncement).

Empirical results confirm the hypothesis that positive valuation effects are observed during product launch that is preceded by initial costless product signaling. In contrast, for ex ante costly product signaling, launch events are not diagnostic enough to affect value. Since organizations’ NPD communications can revise investors’ prior beliefs, they need to be understood in more detail and managed strategically.

Valuation metrics can be noisy with a potential to influence information events. In addition, product introduction signals may be deployed more frequently in certain fast-paced industries, e.g. hi-tech.

Managers can incorporate signal dependence in product communications. For example, in costless ex ante product signaling situations, initial economic loss may be recovered through launch announcements. Furthermore, when costly signals have been used earlier, firms may economize on promotion costs during launch.

Past research has focused on assessing the economic value of new product signals independently, i.e. as discrete events. Absent is an examination of valuation effects due to the dependence of launch signals on prior preannouncements. This paper addresses the dependence gap, and empirical results show that even if firms do not deploy product signals ex ante, value can be created through ex post launch announcements.

This study focuses on resolving empirical inconsistencies in the relationship between external search breadth and innovation performance. Based on research on the knowledge-based view and innovation barriers, three internal barriers that weaken the effectiveness of external search breadth are discerned: information, rigidity and financial barriers.

For empirical analysis, the Korean Innovation Survey 2016 of manufacturing firms was utilized. This study defines innovation performance as the number of patent applications and new product introduction that are analyzed through zero-inflated negative binomial and logistic regressions, respectively.

The empirical analysis showed three findings. First, external search breadth has a positive relationship with the number of patent applications but not with new product introduction. Second, financial barrier weakens the positive association of external search breadth with the number of patent applications. Third, the interactions of external search breadth with the three internal barriers are negatively related to new product introduction.

This study makes two theoretical contributions. First, by examining barriers to external knowledge search, this research helps identify potential bottlenecks in this search. Second, the study reveals that the effectiveness of external search breadth may have a boundary in firm innovation by showing that this search affects patent application and new product introduction differently.

This paper aims to study the impact of manufacturer’s upgrading strategy of durable products on the retailer’s decision on trade-in program and her decision on the secondary market.

This paper develops a channel that consists of a manufacturer and a retailer, where the manufacturer releases an upgraded product, and the retailer introduces a trade-in program for consumers, simultaneously, decides whether to enter the secondary market. These approaches are modeled through Stackelberg game.

This paper reveals that the optimal conditions for manufacturer to release upgraded products and retailer to resell used products in the secondary market, and it reveals that under what conditions it is profitable for retailer to enter the secondary market under product upgrade levels.

If the manufacturer’s upgrade level is low, it is profitable for the retailer to enter the secondary market. However, if the manufacturer’s upgrade level is high, it is unprofitable for the retailer to enter the secondary market.

In this paper, the active secondary market, upgrading of new products, consumer market segmentation and especially, the upgrade degree of new products as a function of consumer demand are considered simultaneously.

The purpose of this paper will be on finding and analyzing the impact of government on the information and communication technology (ICT) companies’ innovation performance. The study aims to conduct in-depth research about the government as an integrated actor of the innovation ecosystem (IE), not a sole member. This would be the core finding toward doing further research about the impact of the innovation ecosystem in the ICT sector in Kosovo.

Quantitative research has been considered the most suitable data collection method. Furthermore, in this study, it is used convenience sampling as a technique of the sampling process. The sample size of this study is 106 participants. The participants are owners or representatives of ICT companies in Kosovo. Since the study is conducted using the deductive approach, the questionnaire is considered to be the most suitable instrument for gathering data.

This paper provides empirical insights that the company’s size and the dedicated department for research and development have no impact on how the company takes advantage of public funding from the government. Furthermore, the authors of the paper found out that government has a positive impact on companies’ introduction of new products and services, while the impact of the government on a company’s financial performance was insignificant.

The future research direction should be firstly on studying other IE actors and their impact on companies’ innovation performance and secondly on measuring the IE actors as a set of actors to have a broader picture on how IE impacts the companies’ innovation performance.

The scientific contribution of this study will be on mapping, analyzing and proposing government policies in accordance with the findings of this study that would lead to a more comprehensive and sustainable IE in Kosovo.

This study tries to fulfill an identified need to study the impact of interconnected actors of an innovation ecosystem and to show how they affect each other. In this study, it is taken for research one fragment of a set of actors.

Second-order system-dynamics engineering (SOSDE) involves constructing and running enterprise manufacturing simulation models with new proposals for operational processes, byproducts, supply chain and/or downstream marketing designs. This paper aims to describe sustainability the principal lessons from enacting SOSDE research for achieving goals in large manufacturing firms.

This study is a case research commentary in the agricultural industry that contributes abductively derives six principal lessons from SOSDE research on introducing sustainability-focused manufacturing and product innovations. Operational processes in large-scale poultry processing plants in an emerging market represent the specific industry and firm domain of this case study. Alternative SOSDE simulation models of decisions, materials flow and outcomes with versus without operational innovations were constructed following one-to-one interviews with experienced farm managers and entrepreneurs.

The principles demonstrate how large farms in a developing nation (i.e. Bangladesh) go about adopting radically innovative manufacturing, supply chain and marketing operations to improve traditional operations. This study confirms and expands on the general observation that SOSDE can help achieve sustainability and environmental, social and governance goals, contribute new value outcomes by converting unused production wastes into valuable byproducts and introduce design efficiencies in production, supply chain and marketing processes. SOSDE complements, while being a revolutionary departure from, “six sigma management programs” that focus on achieving exceptional and near mistake-free manufacturing operations. Both represent distinct philosophies and sets of actions that sometimes can conflict with one another. Embracing both successfully in the same enterprise is a goal that may appear unreachable, seemingly impossible to achieve and yet represents a manufacturing/marketing epitome that is observable in exceptional enterprises.

This paper may generate controversy as well as advance interest in applying SOSDE in introductions of improved manufacturing, supply chain and marketing operations aiming to accomplish radical improvements in sustainability goals.

This commentary describes how using SOSDE and running alternative production simulations with versus without including superior, radically new, process innovations enable the firm to find and eliminate glitches in system changes and reduce the fear associating with breakdowns and financial losses due to inadequate knowledge of operating new industrial procedures and outcomes.

Introductions of superior radically new innovations in industrial manufacturing and marketing via SOSDE frequently include manufacturing firms embracing new environment sustainability objectives and additional marketable byproducts from the firm's main productions lines. This commentary offers details on how this process is enacted in poultry manufacturing in an economically emerging nation.

Running simulations in SOSDE research offers a low-cost, fast and in-depth method to test “what-if” impacts of enhanced and radical innovations into product/service manufacturing operations – benefits supporting the recommendation to apply systems dynamics in business and industrial marketing.

The study aims to identify salespeople’s challenges while selling newly launched products in the fast-moving consumer goods (FMCG) sector by examining the holistic environment in which they perform their selling tasks. Furthermore, it develops a hierarchical model mapping the interrelationships between identified challenges to explore their dependence and driving power through qualitative research techniques.

The current study is exploratory and inductive in its research design. It used focus-group discussion (FGD), semistructured interviews and thematic content analysis (TCA) to identify new-product selling challenges in the FMCG sector. The identified factors were then worked into a hierarchical model using total interpretive structural modeling (TISM) to analyze their relationship. The factors were further classified into clusters based on their driving and dependence power, with the help of the Matrice d’Impacts Croisés Multiplication Appliquée à un Classement (MICMAC) technique

The TISM and MICMAC results identified salespeople’s most critical new-product selling challenges in the FMCG sector: product innovation, product differentiation, customer perception and market turbulence. An enhanced organizational focus on these factors will ensure that salespeople get adequate input to tackle the challenges they face while selling newly launched FMCG products.

The study was confined to identifying challenges in the FMCG sector alone but offered scope for application in other sectors.

This study will help organizations to identify and close gaps in the new-product selling process, thereby improving the performance of salespeople and contributing to a new product’s success. The study findings have a bearing on various stages of product development, management and life cycle. They also highlight the need for greater synergy between an organization’s sales force and other departments.

To the best of the authors’ knowledge, this research is unique in identifying new-product selling challenges in the FMCG sector. It also delineates the complex Web of interrelationships between them and classifies the identified factors based on their driving and dependence on power. The research results can help in organizational decision-making and sales practices, empowering salespeople in their new-product selling tasks.

By examining the impact of product innovation on abnormal financial returns following the launch of new products, this study aims to test the explanatory power of a new compound measure of product innovativeness (Ganbaatar and Douglas, 2019).

It is a longitudinal study in which the authors used the compound product innovativeness score (CPIS) for the first time to measure product innovativeness. The abnormal financial returns are estimated through the event study design, where four different models are used. Artificial neural network analysis is done to determine the impact of the CPIS on abnormal returns by utilising a hexic polynomial regression model.

The authors find effect sizes that substantially exceed practically significant levels and that the CPIS explain 65% of the variance in the firm’s abnormal returns in market valuation. Moreover, new-to-the-market novelty predicts 83% of the variation, while new-to-the-firm (catch-up) innovation insignificantly impacts firm value.

This paper demonstrates how the CPIS, an objective and direct measure of product innovativeness, can be used to gain more insight into the innovation effect.

Implications for the business practice of this study include the necessity of relentless innovation by firms in contested differentiated markets, particularly where technological advance is ongoing. Larger and mature firms must practice corporate entrepreneurship to renew their products on a continuous basis to avoid slipping backwards in their markets. Innovation leadership, rather than following the leader, is also important to increase competitive advantage, given the result that innovation followship does not produce abnormal financial returns.

In this study, the authors focused on the effect of product innovativeness on firm performance. While the literature affirms a positive relationship between innovation and firm performance, the effect size of this relationship varies, due largely to the authors contend to simplistic measures of innovativeness. In this study, the authors adopt the relatively novel “compound” measure of product innovativeness (Ganbaatar and Douglas, 2019) to better encapsulate the nuances of both technical novelty and market novelty. This measure of product innovativeness is applicable to firms of all sizes but is more easily applied to entrepreneurial new ventures and SMEs, and it avoids the shortcomings of prior firm-level and subjective measures of innovativeness for both smaller and larger firms. Using a more effective analytical method (Artificial Neural Network), the authors investigated whether there is a “practically” significant effect size due to product innovation, which could be valuable for entrepreneurs in practice. The authors show that the CPIS measure can very effectively explain abnormalities in the stock market, exhibiting a moderate effect size and explaining 65% of the variation in abnormal returns.

This study investigates how perceived political corruption, a generally overlooked corruption type, relates to firms' new product development (NPD) through perceived regulatory obstacles. It also examines firms' perceptions of business association support in this relationship, considering these associations' potential support for NPD.

This study conducted an empirical analysis of 1,663 firms in Turkey, a country noted for a history of legislative corruption, and in which there are strong business associations. Drawing the data from the World Bank's 2019 Enterprise Surveys Dataset, this study tested the hypotheses via the two-stage factor score regression method.

This study finds that perceived political corruption significantly relates to NPD negatively through perceived regulatory obstacles. It also finds that the perceived support of business associations to NPD is significantly greater when firms perceive regulatory obstacles but only slight political corruption.

As far as political corruption is concerned, this study reveals that corruption can also be the cause of regulatory obstacles, expanding the common view of corruption as a means of overcoming regulatory obstacles to NPD. In addition, it introduces the role of business associations in this relationship by revealing their support to NPD for different levels of perceived political corruption and regulatory obstacles.

This research paper aims to investigate detailed relationships between market selection and product positioning decisions and their associated short- and long-term product performance outcomes in the context of the music category: a cultural goods industry with high amounts of product introductions. Market selection decisions are defined by the size, competitiveness and age of market subcategories within an overall product category. Positioning decisions include where a product’s attributes are located spatially in the category (periphery versus the market center), whether a product resides within a single subcategory or spans multiple ones and what brand strategy (single versus co-branding) is used.

Data are from multiple sources for the US music industry (aka product category) from 1958 to 2019 to empirically test the hypotheses: genres (rock, blues, etc.) correspond to subcategories; artists to brands; and songs to products. Regression analyses are used.

A complex set of nuanced results are generated and reported, finding that key marketing decisions drive short-term new product success differently and frequently in opposing ways than long-term success. Launching into very new, well-established or very competitive markets leads to the strongest long-term success, despite less attractive short-run prospects. Positioning a product away from the market center and spanning subcategories similarly poses short-run challenges, but long-run returns. Brand collaborations have reverse effects. Short-run product success is found, overall, to be difficult to predict even with strong data inputs, which has substantial implications for how firms should manage portfolios of products in cultural goods industries. Long-run product success is considerably more predictable after short-run success is observed and accounted for.

While managers and firms in cultural goods industries have long relied on intuition to manage market selection and product positioning decisions, this research tests the hypothesis that objective data inputs and empirical modeling can better predict short- and long-run success of launched products. Specific insights on which song characteristics may be associated with success are found – as are more generalizable, industry-level results. In addition, by distinguishing between short- and long-run success, a more complete picture on how key decisions holistically affect product performance emerges. Many market selection and product positioning decisions have differential impacts across these two frames of reference.

The purpose of this study is to examine tolerance of channel partners’ opportunistic behaviors as a viable governance mechanism and to test contingent transaction benefit and cost factors to determine tolerance of opportunistic behaviors.

Through the theoretical lenses of governance value analysis and transaction cost economics, this study theorizes that a supplier’s tolerance of its reseller’s opportunistic behaviors should depend on transaction benefit factors (e.g. new product creativity and marketing program creativity) and transaction cost factors (e.g. performance ambiguity and opportunity cost). The author empirically tests the moderation model using data from a large-scale survey of 141 mobile phone suppliers in South Korea.

The empirical results largely support the predictions on the moderating effects. For transaction benefit factors, marketing program creativity increases the supplier’s tolerance, while new product creativity does not increase the supplier’s tolerance. For transaction cost factors, the supplier’s concerns about opportunity cost increase the level of tolerance, while performance ambiguity of a business partner decreases the tolerance level.

Theorizing opportunistic behaviors as a policy variable subject to benefit-cost assessment rather than an assumption provides new insights to interfirm governance research.

To the best of the author’s knowledge, this study is the first kind to consider transaction benefit and cost factors together in a single contingency framework in tolerance research. Also, this research provides a new perspective on a microlevel marketing factor (i.e. creativity) as an influential factor in governance mechanisms.