The role and impact of firm’s strategic orientations on launch performance: significance of relationship orientation

Abstract

Purpose This study examines the role and relative impact of market orientation, product orientation and relationship orientation on new product launch performance, investigating product advantage and market-based assets as alternative mediating mechanisms, which link these strategic orientations to launch performance. Design/methodology/approach Survey data from the pharmaceutical industry are used to test hypotheses in the research model using partial least squares modeling. Findings Findings show that while each examined strategic orientation relates positively to launch performance, their performance effects and related mechanisms vary significantly. Results demonstrate a firm’s relationship orientation is the strongest predictor of launch performance, and accumulated market-based assets represent an alternative relational mediator besides product advantage linking firms’ orientations and launch performance. Research limitations/implications The empirical study is based on cross-sectional data collected in one specific industry sector. The authors encourage researchers to confirm the key findings in different industry and other contextual settings. Practical implications New product launch can be effectively managed as a relational activity. Firms benefit from paying explicit attention to strategic orientations and relationships. Especially, top management should foster a relationship-oriented organizational culture, develop relational competences and fully use the firm’s accumulated market-based assets for increased launch performance. Originality/value The study extends knowledge on the role of strategic orientations in launch performance by highlighting the significance of relationship orientations and providing novel knowledge on the key mediating mechanisms between strategic orientations and launch performance.

New Product Launch Success: A Literature Review

“…For small firms, they found that the link was basing mainly due to strong correlation to competitor orientation, whereas for bigger companies, the link between performance and market orientation was generally weak. Links between market orientation (mainly competitor orientation in the case of Ledwith and O'Dwyer) and new product performance was also supported by other studies (Ledwith and O'Dwyer, 2009;Wong and Tong, 2011;Matikainen et al, 2016), competitor orientation's importance also later confirmed by recent research (Wong and Tong, 2011; O'Dwyer and Gilmore, 2019). Altogether, the results show that market orientation is a strong driver to launch success; There are hints that market orientation serves as a driver to administrational proficiency and thus facilitates the establishment of an efficient launch strategy.…”

How to improve new product performance through customer relationship management and product development management: evidence from China

“…However, as a considerable amount of time is required to analyze the huge volumes of customer data available, the knowledge gained may be out of date by the time it has been absorbed (Carbonell and Escudero, 2010; Li and Calantone, 1998; Zirger and Hartley, 1994). Consequently, to enable firms to perform better in turbulent environments, CRM-related capability improvement alone is insufficient (Matikainen et al , 2016; Song et al , 2013). Firms’ ability to transform customer knowledge into superior products or services offerings should also be enhanced (Ashrafi and Ravasan, 2018; Bendapudi and Leone, 2003; Lindh and Nordman, 2017; Preikschas et al , 2017; Zhang and Zhu, 2018).…”

“…For example, some studies have shown new products developed through great leaps in technology and/or market advantages are more likely to generate significant benefits for the firms that develop them (Bonner, 2010; Jin et al , 2019). At the same time, Matikainen et al (2016) found that a heavy emphasis on CRM in NPD can be a limitation. McNally et al (2010) suggested that firms can hardly enjoy new product financial success through market newness focused.…”

Recipes for new product success: the interplay between orientations and environmental turbulence

“…Scholars have also studied the mechanism by which CU influences NP and increasingly argue that CU contributes indirectly rather than directly through intangible assets (Matikainen et al , 2016) and capabilities (O’Cass and Heirati, 2015; Wang et al , 2016). Hence, CU is expected here to be a necessary but insufficient condition for NP, meaning that it is expected to be one of multiple conditions needed for NP.…”