Dynamic capabilities to match multiple product generations and market rhythm

Abstract

Purpose -The purpose of this paper is to provide greater insights to managers seeking to time properly the launches of innovative new products (NPs) across multiple generations. This paper aims to address the rhythm matching problem by developing a typology and a conceptual framework of the interaction between a firm's technological readiness to launch NPs and a market's receptivity in influencing a firm's long-term performance. Design/methodology/approach -Based on the new product development (NPD) and diffusion of innovation literatures, the paper develops a model explicitly to address the rhythm matching problem by highlighting the interaction between a firm's technological readiness to launch new products and a market's receptivity in influencing a firm's long-term performance. The logic of this model may be described as follows: long-term performance is a function of matching: products to customer needs, marketing mix dynamics to customer segments and buying behavior dynamics, and logistics, supply chain management, and inventory to market dynamics and financial efficiency; uncertainty in: knowledge of needs, market segments and their dynamics, and market dynamics is all a function of time, as is financial efficiency. Therefore, a firm's long-term performance is a function of these matches over time. Findings -Deriving from the proposed model and typology, it was found that in independent rhythm windows, the management focus is on a single generation and each successive generation can be planned independently. In market-imposed windows, firms aim at adapting their own NP readiness rhythm to the market receptivity rhythm. In firm-imposed windows, firms have the initiative to drive the market receptivity rhythm. In dynamically resultant windows, everything is more complicated because firms' NP readiness rhythm and market receptivity rhythm influence each other. Originality/value -The model and typology developed in this paper are a breakthrough result of synthesizing various traditions of NPD and diffusion of innovation research. It is believed that the paper provides a rich conceptual framework drawing together extant research on the development and introduction of new products. The framework is intended both to explicitly inform managers of the importance of rhythm matching as well as to the factors that influence such matching. It is also intended to provide a lens with which further research can be directed to increase the efficiency and effectiveness of resource utilization in NPD and the long-term success of the firms.

Dynamic Marketing Capabilities: Toward an Integrative Framework

“…For example, market knowledge has been shown to aid in triggering innovation processes (Bruni and Verona ; Dacko et al . ; Marsh and Stock ; Menguc and Auh ) and to increase the firm's ability to identify shifts in customer demand or new strategies developed by competitors (Griffith et al . ; Hou and Chien ).…”

“…Similarly, Dacko et al . () use the case of Gillette to explain how some organizations employ DCs such as NPD to impose a specific rhythm on their markets.…”

“…This knowledge is, however, crucial to developing adaptation processes throughout the organization as a whole. For example, market knowledge has been shown to aid in triggering innovation processes (Bruni and Verona 2009;Dacko et al 2008;Marsh and Stock 2003;Menguc and Auh 2006) and to increase the firm's ability to identify shifts in customer demand or new strategies developed by competitors (Griffith et al 2006;Hou and Chien 2010). According to Griffith and HarveyF igure 2…”

“…Many scholars have used NPD to emphasize the role of marketing as an area on which to focus in developing DCs (e.g. Dacko et al 2008;Im et al 2013;Marsh and Stock 2003;Menguc and Auh 2006;Tu 2010). Some authors have even proposed marketing it as a DMC (e.g.…”

“…In accordance with this potential to improve business performance, some studies (e.g. Bruni and Verona 2009;Cavusgil et al 2007;Dacko et al 2008;Fang and Zou 2009;Morgan 2012) have introduced the term 'dynamic marketing capabilities' (DMCs hereafter) and identified various marketing mechanisms that contribute to sustainable competitive advantage (e.g. new product development (NPD), customer relationship management (CRM) and channel management).…”