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1 – 10 of over 49000Matthew Jenkins, Timothy Munyon and Marc Scott
Endeavoring to expand their global market presence, firms often launch products into emerging markets where managers face the daunting task of deploying products by managing…
Abstract
Purpose
Endeavoring to expand their global market presence, firms often launch products into emerging markets where managers face the daunting task of deploying products by managing available, and often limited, supply chain resources. Yet, literature has not empirically examined managerial resource orchestration in this context. Accordingly, by embedding resource orchestration theory (ROT) into the emerging market context, the authors offer middle-range theorizing on supply chain resource orchestration (SCRO) and empirically test how acquiring, bundling and leveraging activities impact new product launch performance.
Design/methodology/approach
The authors test the model by analyzing empirical data from 175 individual product launches into emerging markets using a survey methodology.
Findings
The authors’ results suggest that SCRO holds the promise of being a viable middle-range theory in the supply chain field, especially where managers face limited resources and must “work with what they have to do what they can.”
Research limitations/implications
The authors’ study also has some limitations. First, because a panel data service company was used to collect the data, the authors were not provided with any information regarding the respondents' company names or other identifying data. Second, because the authors did not directly interact with the respondents nor were the authors able to contact multiple individuals from their respective organizations, the study was limited to a single-respondent design. However, to counter issues associated with single-response bias, the central constructs in the study referenced phenomena related to a specific product launch project as opposed to constructs at the firm or inter-firm relational level.
Practical implications
The authors’ results reveal that SCRO activities can enhance the performance of new product launches, even in resource-starved emerging market contexts.
Originality/value
The results validate measures for several of the SCRO processes (i.e. supply chain resource acquisition, supply chain resource bundling and supply chain leveraging) and provide evidence that supply chain resource bundling and supply chain leveraging mediate the relationship between supply chain resource acquisition and product launch performance. Further, soft logistics infrastructure is found to be an important boundary condition for these relationships.
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Debi P. Mishra and M. Deniz Dalman
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…
Abstract
Purpose
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.
Design/methodology/approach
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).
Findings
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.
Research limitations/implications
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.
Practical implications
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.
Originality/value
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.
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Wei Yang, Waranan Tantiwat, Alan Renwick, Cesar Revoredo-Giha and Le Wang
This paper aims to empirically investigate the role of product positioning in the launch of food and drink products using a large dataset of new product development by food…
Abstract
Purpose
This paper aims to empirically investigate the role of product positioning in the launch of food and drink products using a large dataset of new product development by food companies in Australia (AU) and New Zealand (NZ). As such, positioning through credence attribute claims can be associated with product launch strategies, including brand-new products, expansion of product ranges, new packaging and relaunch, as a response to market demand.
Design/methodology/approach
Text analysis was used to investigate the descriptions of food claims using Structured Query Language, providing a word list of food claims and further filtered and categorised into groups of claims. Multinomial regression models were then employed to analyse the association between product launch strategies and food claims adopted by firms.
Findings
The results of this paper provide evidence that positioning via food claims play an important role in product launch strategies in both AU and NZ. Types of food claims matter differently to firms' product launch decisions in the two markets. The “green” and “ethical” attributes are found to be associated with new launches in NZ but not in AU. Claims that are seen as most important for consumers are more likely to be engendered for the more costly launch approach.
Originality/value
This study is amongst the first studies that addresses the role of positioning in product launch strategies of food companies. The results and findings provide insights into the different prevailing credence attributes from the firm side and help policymakers to regulate the delivery of information about credence attributes to consumers.
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Peter Trim and Hao Pan
The purpose of this paper is to make explicit how marketers employed in the pharmaceutical sector can ensure that the company is positioned in the industry as a result of a…
Abstract
Purpose
The purpose of this paper is to make explicit how marketers employed in the pharmaceutical sector can ensure that the company is positioned in the industry as a result of a sustainable competitive advantage being achieved. Various factors are highlighted, including high research and development costs, stringent government regulations and cultural factors such as religion.
Design/methodology/approach
The new product launch strategy model outlined in this paper was developed from both secondary and primary sources. A literature review was undertaken, a number of in‐depth personal interviews and a focus group session were conducted, which involved managers within a pharmaceutical company. The research strategy encompassed the case study method and the NPLS model was validated and can be viewed as generalisable.
Findings
It is clear from the research undertaken that some marketing models are viewed as being too complex; however, it is generally appreciated that marketing models can be used to interpret complex relationships that are evident in a marketing system.
Research limitations/implications
Two weaknesses associated with the model were identified. First, the assumption that there was a one‐way relationship between the strategic launch decisions and the tactical launch decisions and, second, a feedback mechanism was absent that would provide users of the model with a means for evaluating their decisions and identifying alternative strategies and tactics. The model was amended and a feedback mechanism was introduced.
Practical implications
The NPLS model can be used by marketing practitioners to enhance communication between corporate level staff and subsidiary level staff, and can be used to implement and/or facilitate the strategic marketing concept within a pharmaceutical company. The model can also be used to focus attention on risk reduction/elimination associated with market entry.
Originality/value
The NPLS model is an addition to marketing knowledge and can assist marketing academics and researchers to understand better how marketing models can be constructed and implemented. The model can also be used by marketing practitioners employed by pharmaceutical companies to make tactical and strategic decisions; to evaluate a new product launch strategy; and to devise international marketing entry plans and strategies.
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Firms often use upward product line extensions to achieve gains in brand evaluations and in overall demand. Despite the prevalence of such extensions, previous research has…
Abstract
Purpose
Firms often use upward product line extensions to achieve gains in brand evaluations and in overall demand. Despite the prevalence of such extensions, previous research has provided little guidance about how upward line extensions influence overall revenue when they are launched as a core product as opposed to a peripheral product. The purpose of this study is to fill this research gap.
Design/methodology/approach
Using data from the quick service restaurant industry, this study looks at the effects of upwardly extended core and peripheral products on product line revenue. The empirical study uses a quasi-experiment to compare customer purchases across the pre- and post-launch of upward line extensions.
Findings
The results of this study reveal that launching core and peripheral products as upward line extensions can each increase total product line revenue. In addition, findings illustrate that as compared to a core launch, this total product line revenue increase is substantially higher in the case of a peripheral launch.
Research limitations/implications
First, the estimated model does not include supply availability and competition. Second, the data span only six months and this restriction prohibits us from investigating alternative sources of the causal effect. Third, the empirical setting in this study is limited to financial data in the quick service restaurant industry as a proxy of actual behavior. Finally, given that customers are not randomly assigned to treatment and control groups, the author is unable to definitively rule out the effect of unobservable attributes.
Practical implications
The findings suggest that firms should prioritize peripheral upward line extensions but use both types considering resource constraints (cost and human resources) and strategic importance to the firm.
Originality/value
This study bolsters the extant literature related to upward product line extensions by providing an empirical framework that evaluates the causal effect of upward line extension on total revenue, using field data in a real-life setting (as opposed to survey or lab experiment data) and actual firm revenue (as opposed to a perceptual outcome measure such as behavioral intentions). In addition, findings contribute to the new product development literature.
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Ann Ledwith and Michele O'Dwyer
The importance of new product development to the survival and success of firms is well supported in the literature; however, few studies have investigated new product development…
Abstract
Purpose
The importance of new product development to the survival and success of firms is well supported in the literature; however, few studies have investigated new product development in small to medium‐sized enterprises (SMEs). This study aims to examine the impact of product launch, product advantage and market orientation on new product development performance and organisational performance in SMEs.
Design/methodology/approach
This model was tested using data collected from 48 small and large sized firms in Ireland. Findings from 33 small and 15 large firms were compared, and a correlation analysis was used to establish the relationships defined in the model for both small and large firms.
Findings
The study identified several significant differences between the impact of product launch, product advantage and market orientation on new product development and organisational performance in small and large firms. It also indicated several areas in which small firms can improve their new product and organisational performance.
Research limitations/implications
This research builds on prior empirical research that has established a positive link between customer and competitor orientation and performance of small firms.
Practical/implications
The managerial implications suggest that managers need to place a greater emphasis on product launch proficiency, new product characteristics and market orientation.
Originality/value
The results show that a market orientation, as well as having a direct impact on organisational performance, also affects new product development activities.
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Tun-Chih Kou and Bruce C. Y. Lee
The purpose of this study is to fill the gaps in previous literature and investigate the link between product launch performance and supply chain architecture and performance…
Abstract
Purpose
The purpose of this study is to fill the gaps in previous literature and investigate the link between product launch performance and supply chain architecture and performance. During the past 20 years, most of the new product literature has focused on new product development and product innovation. Only a few product launches have been discussed in specific fields.
Design/methodology/approach
From the perspective of the manufacturer, interfunctional coordination, supply chain architecture and supply chain performance affect lean launch performance. Lean launches can also add value to product and marketing performance. A questionnaire was used to gather data from project, account and purchasing managers in the high-tech industry and to test the postulated research model and hypotheses. The conceptual model was tested using 242 usable questionnaires.
Findings
The results provide evidence that interfunctional coordination is the basis for improving supply chain architecture. The supply chain has a strong, positive effect on lean launch performance. Lean launch is vital to the successful performance of a new product. Although lean launch execution and supply chain performance affect marketing performance and new product performance, the direct effect on marketing performance is non-significant.
Originality/value
This study presents the characteristics of the supply chain architecture specific to the high-tech industry. The authors empirically tested and propose a model to explain how high-tech manufacturers build a solid supply chain and leverage the capabilities of suppliers to improve lean launch execution and new product performance.
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Susan Hart and Nikolaos Tzokas
This research examines whether the marketing mix decisions for new product launch change over the product‐market life cycle. Results raise questions about existing benchmark…
Abstract
This research examines whether the marketing mix decisions for new product launch change over the product‐market life cycle. Results raise questions about existing benchmark beliefs based on normative text‐book theories. In view of new insights we suggest a number of directions for the theoretical and empirical development of the new product launch field in the marketing management discipline.
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Erik Jan Hultink and Susan Hart
Focuses on product advantage, a major contributing factor to new product performance, by examining the launch strategies associated with high and low levels of product advantage…
Abstract
Focuses on product advantage, a major contributing factor to new product performance, by examining the launch strategies associated with high and low levels of product advantage. Views a launch strategy as integrating protocol decisions, which have steered the course of a product’s development with the tactical marketing mix decisions. Data confirm all associations between key elements of new product protocol and product advantage. Growth‐related objectives guide the development of new products with high advantage, while the speedy development and early timing of the projects, the focus on growth markets, and the use of a niche targeting strategy are the hallmarks of products with high advantage. Contends that companies offering the world a better mousetrap do not believe the myth that a path to its door will be beaten; the better mousetrap requires and receives a different launch treatment from more pedestrian competitors.
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Minna Matikainen, Harri Terho, Petri Parvinen and Anne Juppo
This study examines the role and relative impact of market orientation, product orientation and relationship orientation on new product launch performance, investigating product…
Abstract
Purpose
This study examines the role and relative impact of market orientation, product orientation and relationship orientation on new product launch performance, investigating product advantage and market-based assets as alternative mediating mechanisms, which link these strategic orientations to launch performance.
Design/methodology/approach
Survey data from the pharmaceutical industry are used to test hypotheses in the research model using partial least squares modeling.
Findings
Findings show that while each examined strategic orientation relates positively to launch performance, their performance effects and related mechanisms vary significantly. Results demonstrate a firm’s relationship orientation is the strongest predictor of launch performance, and accumulated market-based assets represent an alternative relational mediator besides product advantage linking firms’ orientations and launch performance.
Research limitations/implications
The empirical study is based on cross-sectional data collected in one specific industry sector. The authors encourage researchers to confirm the key findings in different industry and other contextual settings.
Practical implications
New product launch can be effectively managed as a relational activity. Firms benefit from paying explicit attention to strategic orientations and relationships. Especially, top management should foster a relationship-oriented organizational culture, develop relational competences and fully use the firm’s accumulated market-based assets for increased launch performance.
Originality/value
The study extends knowledge on the role of strategic orientations in launch performance by highlighting the significance of relationship orientations and providing novel knowledge on the key mediating mechanisms between strategic orientations and launch performance.
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