Developing New-to-the-Firm Products: The Role of Micropolitical Strategies

Abstract

This research addresses three questions: (1) To what extent do new-to-the-firm products (with market and technology newness) face resistance in winning approval for development during the review process? (2) To what degree does product development teams' use of micropolitical strategies help reduce resistance and get approval with minimum compromise in the product? (3) To what extent do some of these micropolitical strategies harm the new product's performance? The findings suggest that products with both market and technology newness encounter resistance in getting approval for development. If the product development team wants to reduce resistance to products with market newness, it needs to build a coalition of supporters that can help it during the review process. Similarly, if the team seeks to minimize resistance to products with technology newness, it should frame the product in terms of the firms' existing products, strategies, and competitive thrusts. However, such framing increases resistance to market newness. If products continue to be resisted, they must be compromised (i.e., modified as a concession) to win approval. If the team wants to reduce the degree of compromise, it should initially develop the product in hiding. Products that are compromised perform poorly in the marketplace.

Barriers to enter in foreign markets: evidence from SMEs in emerging market

“…Generally, government develops the rules and procedures for day-to-day life through a political and legal framework. Business is considered as the integral part of this daily life, therefore, cannot be conducted against the tide of the political and legal system (Sethi, Iqbal and Sethi, 2012).…”

Friend or foe? The effects of managerial politics on NPD team communication, collaboration and project success

“…As Sethi et al. () note, it is important for organisations to delegate power to managers within NPD teams because it allows them to form effective coalitions and gain access to key resources.…”

“…Empowering MMs may therefore be beneficial, because consistent with resource dependence theory, a MMs power can add value for TTMs. As Sethi et al (2012) note, it is important for organisations to delegate power to managers within NPD teams because it allows them to form effective coalitions and gain access to key resources.…”

Service Business Model and Service Innovativeness

“…Meanwhile, while new-to-the-world services are new to both the industry/ market and the firm, only a small percentage of all new services are new-to-theworld services (Garcia and Calantone, 2002;Storey and Hughes, 2013). In addition, not all new-to-the-industry/market services are new-to-the-world services (Sethi et al, 2012). Therefore, considering a broader range of new services, this study focuses on new-to-the-industry/market services.…”