Resource title

When product development performance makes a difference: a statistical analysis in the electronics industry

Resource image

image for OpenScout resource :: When product development performance makes a difference: a statistical analysis in the electronics industry

Resource description

High performance of the product development function is seen as a path to competitive advantage in many industries. Product development performance is commonly measured as the efficient and rapid development of new and high performing products. However, the relevance of development performance for business success depends on the competitive market environment in which a firm operates. This article develops a market contingency framework of the impact of development performance on profitability. The market environment dimensions are growth, industry profitability, market share and product life cycles. The authors statistically test the framework on data from 86 companies in 12 electronics industries worldwide. They show that product development performance is more important in technologically stable and low growth industries. In addition, large companies can significantly impact their financial performance through product development, whereas the profitability of small firms is driven mainly by their industry environment.

Resource author

Resource publisher

Resource publish date

Resource language

en

Resource content type

application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/Inseadwp1996/96-78.pdf

Resource license

Copyright INSEAD. All rights reserved