This article presents the results of a study on the evaluation criteria that companies use at several gates in the NPD process. The findings from 166 managers suggest that companies use different criteria at different NPD evaluation gates. While such criteria as technical feasibility, intuition and market potential are stressed in the early-screening gates of the NPD process, a focus on product performance, quality, and staying within the development budget are considered of paramount importance after the product has been developed. During and after commercialization, customer acceptance and satisfaction and unit sales are primary considerations.In addition, based on the performance dimensions developed by Griffin and Page (1993), we derive patterns of use of various evaluative dimensions at the NPD gates. Our results show that while the market acceptance dimension permeates evaluation at all the gates in the NPD process, the financial dimension is especially important during the business analysis gate and after-market launch. The product performance dimension figures strongly in the product and market testing gates. The importance of our additional set of criteria (i.e., product uniqueness, market potential, market chance, technical feasibility, and intuition) decreases as the NPD process unfolds. Overall the above pattern of dimensions' usage holds true for both countries in which we collected our data, and across firms of different sizes, holding different market share positions, with different NPD drivers, following different innovation strategies, and developing different types of new products. The results also are stable for respondents that differ in terms of expertise and functional background.The results of this study provide useful guidelines for project selection and evaluation purposes and therefore can be helpful for effective investment decisionmaking at gate-meetings and for project portfolio management. We elaborate on these guidelines for product developers and marketers wishing to employ evaluation criteria in their NPD gates, and we discuss directions for further research.
This study focuses on how the interplay between a firm's absorptive capacity (ACAP), and its technological and customer relationship capability contributes to its overall performance. Using structural equation modeling in a sample of 158 firms (316 questionnaires, two respondents per firm) from South Korea's semiconductor industry, we find that a firm's ACAP leads to better performance in terms of new product development, market performance and profitability when used in combination with the firm's capability to engage state of the art technologies in its new product development program (NPD) (technological capability) as well as cultivate strong customer relationships to gain customer insight in NPD (customer relationship capability). By highlighting the interactive nature of absorptive capacity's antecedents and how these relate to firms' performance, this study contributes to the understanding of the role of ACAP as a mechanism for translating external knowledge into tangible benefits in high-tech SMEs, thus leading to important theoretical and practical implications.
This paper explores the interface of employee orientation and the Customer Relationship Management (CRM) process based on an in-depth case study of a leading firm in the UK automotive services sector. Employee orientation is embedded in the Organizational Culture (OC) of the firm and manifested through its key elements, notably assumptions, values, behaviours and artefacts. CRM consists of four organizational activities: strategic planning, information, value creation, and performance measurement sub-processes. Based on the case study evidence, the widely postulated link between CRM success and employee orientation is empirically supported and the mechanisms underlying this association elucidated. Copyright Blackwell Publishing Ltd 2007.
An organization's ability to enjoy long‐term competitive advantage is closely related to its capacity for knowledge creation, dissemination and use. From a practical point‐of‐view the value of this statement could be increased if suggestions could be made to managers as to what kind of knowledge to seek for their organization, where and how to look for it. This article provides tentative answers to these questions from a relationship marketing perspective. In doing so the scope, processes and technologies of relationship marketing are discussed and their knowledge content and potential outlined. Finally, a conceptual framework for knowledge generation and dialogue in relationship marketing is proposed and directions for further research, alongside their practical implications for contemporary firms, delineated.
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