The Mediating Effects of Customer and Competitor Orientations on New Product Success

Abstract

Market orientation, innovation, and new product success are receiving increasing attention from practitioners and scholars. Although producing new products is critical to the profitability of a firm and its long-term survival, it is a costly and risky business because of low success rates. The research on which this paper is based investigated key determinants of new product success from the perspective of team members responsible for developing new products. Findings from 217 respondents support the hypotheses that new product success is driven by cooperation between research and development and marketing. It was also found that customer and competitor orientations have a mediating effect on the association between research and development and marketing cooperation and new product success. The study contributes to the body of knowledge relating to new product success, marketing, and management. The findings provide information for managers involved in the development and marketing of new products, to help ensure their success. This will benefit both their organizations and the community at large.

An examination of the moderation effects of NPD resource allocation and product innovativeness on the NPD stage process proficiency-new product market success relationship

“…Hopkins (1980) studied 148 industrial product manufacturing fi rms and concluded that new product failure can be reduced by educating customers, avoiding the over-engineering of new products and performing market research. Wong et al (2011) found that the degree to which an organisation exhibits a customer orientation mediated the impact of that organisation's marketing-R&D collaboration on new product success. Major problems that lead to product failure include an organisation's lack of preparation to market products, an organisation's inability to support fast market growth, and the commercialisation of new products that fall short of customer expectations.…”

Marketing Strategy Formulation for Innovative Product Development Process

“…S. Wong and T. Canon (2011) investigated the mediating effects of customer and competitor orientations on new product success. This research found that R&D-marketing cooperation is a key factor for NPS, as it encourages the sharing of ideas and making of joint decisions so that tasks can be accomplished in the most effective way.…”

Value Discipline Dimensions on Organisational Performance and Competitive Advantage: A Study on Pharmaceutical Companies in Diabetes Care

“…Operational effectiveness (Delarue, Van Hootegem, Procter, & Burridge, 2008;Sparrow & Cooper, 2014) feelings (Van Dyne & Pierce, 2004;Knowledge.wharton, 2007), customer orientation (Asikhia, 2010;Jeong, Kim, & Yoon, 2014) are used. In addition, other constructs such ascompetitor orientation (Wong & Tong, 2011;Kumar, Subramanian, &. Strandholm, 2011) inter-functional orientation (Chin, Lo, & Ramayah, 2013;Hussain, Shah, & Akhtar, 2016) and social orientation (Ramayah, Samat, & Lo, 2011) are also used.Those studies found the positive relationship of operational excellence constructs and organisational performance.However, the previous studies failed to highlight the specific relationship of stakeholders.…”