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New Product Development Structures and Time-to-Market

Author

Listed:
  • Srikant Datar

    (Graduate School of Business, Harvard University, Boston, Massachusetts 02163)

  • Clark Jordan

    (Graduate School of Industrial Administration, Carnegie Mellon University, Schenley Park, Pittsburgh, Pennsylvania 15213-3890)

  • Sunder Kekre

    (Graduate School of Industrial Administration, Carnegie Mellon University, Schenley Park, Pittsburgh, Pennsylvania 15213-3890)

  • Surendra Rajiv

    (Graduate School of Business, University of Chicago, 1101 East 58th Street, Chicago, Illinois 60637-1561)

  • Kannan Srinivasan

    (Graduate School of Industrial Administration, Carnegie Mellon University, Schenley Park, Pittsburgh, Pennsylvania 15213-3890)

Abstract

In fast-cycle, high technology industries, the speed and rate at which companies can introduce products into the market are critical for sustaining competitive advantage and market share. The authors analyze new product development by three international manufacturers that dominate a segment of the electronic component industry. The objective is to examine the impact of two distinct product development strategies and structures on time-to-market. The analysis of more than 200 new product developments provides important findings. A concentrated new product development structure, in contrast to a distributed structure, affords rapid prototyping. However, volume production is reached faster in the distributed structure. Also, devoting more time to prototyping hastens volume production.

Suggested Citation

  • Srikant Datar & Clark Jordan & Sunder Kekre & Surendra Rajiv & Kannan Srinivasan, 1997. "New Product Development Structures and Time-to-Market," Management Science, INFORMS, vol. 43(4), pages 452-464, April.
    • Handle: RePEc:inm:ormnsc:v:43:y:1997:i:4:p:452-464
    DOI: 10.1287/mnsc.43.4.452
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    Citations

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    Cited by:

    1. Heather Berry & Aseem Kaul, 2015. "Global Sourcing and Foreign Knowledge Seeking," Management Science, INFORMS, vol. 61(5), pages 1052-1071, May.
    2. A. Messica & A. Mehrez, 2002. "Time-to-market, window of opportunity, and salvageability of a new product development," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 23(6), pages 371-378.
    3. Dennis Gensch, 2001. "A Marketing-Decision-Support Model for Evaluating and Selecting Concepts for New Products," Interfaces, INFORMS, vol. 31(3_supplem), pages 166-183, June.
    4. Scott A. Shane & Karl T. Ulrich, 2004. "50th Anniversary Article: Technological Innovation, Product Development, and Entrepreneurship in Management Science," Management Science, INFORMS, vol. 50(2), pages 133-144, February.
    5. Wilhelm, Wilbert E. & Xu, Kaihong, 2002. "Prescribing product upgrades, prices and production levels over time in a stochastic environment," European Journal of Operational Research, Elsevier, vol. 138(3), pages 601-621, May.
    6. Abdollah Arasteh, 2020. "Considering Project Management Activities for Engineering Design Groups," SN Operations Research Forum, Springer, vol. 1(4), pages 1-29, December.
    7. Elien Vandenbroucke & Mirjam Knockaert & Deniz Ucbasaran, 2016. "Outside Board Human Capital and Early Stage High–Tech Firm Performance," Entrepreneurship Theory and Practice, , vol. 40(4), pages 759-779, July.
    8. Nadia Bhuiyan & Donald Gerwin & Vince Thomson, 2004. "Simulation of the New Product Development Process for Performance Improvement," Management Science, INFORMS, vol. 50(12), pages 1690-1703, December.
    9. Lin, Jun & Chai, Kah Hin & Brombacher, Aarnout C. & Wong, Yoke San, 2009. "Optimal overlapping and functional interaction in product development," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1158-1169, August.
    10. John V. Gray & Enno Siemsen & Gurneeta Vasudeva, 2015. "Colocation Still Matters: Conformance Quality and the Interdependence of R&D and Manufacturing in the Pharmaceutical Industry," Management Science, INFORMS, vol. 61(11), pages 2760-2781, November.
    11. Valle, Sandra & Vázquez-Bustelo, Daniel, 2009. "Concurrent engineering performance: Incremental versus radical innovation," International Journal of Production Economics, Elsevier, vol. 119(1), pages 136-148, May.
    12. Marshall Fisher, 2007. "Strengthening the Empirical Base of Operations Management," Manufacturing & Service Operations Management, INFORMS, vol. 9(4), pages 368-382, December.
    13. Heather Berry, 2023. "Diverse knowledge exploration and diffusion in MNCs," Strategic Management Journal, Wiley Blackwell, vol. 44(7), pages 1589-1615, July.
    14. Gregory Stock & Noel Greis & William Fischer, 2018. "Organisational Slack And New Product Time To Market Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-34, May.
    15. Byungyeon Kim & Oded Koenigsberg & Elie Ofek, 2022. "I Don’t “Recall”: The Decision to Delay Innovation Launch to Avoid Costly Product Failure," Management Science, INFORMS, vol. 68(12), pages 8889-8908, December.
    16. Hong, Paul & Doll, William J. & Revilla, Elena & Nahm, Abraham Y., 2011. "Knowledge sharing and strategic fit in integrated product development proejcts: An empirical study," International Journal of Production Economics, Elsevier, vol. 132(2), pages 186-196, August.
    17. Guohua Jiang & Masaaki Kotabe & Feng Zhang, 2020. "Founder ethnic composition, early internationalization, and new venture performance," Journal of International Entrepreneurship, Springer, vol. 18(4), pages 419-443, December.
    18. Marić, Josip & Opazo-Basáez, Marco & Vlačić, Božidar & Dabić, Marina, 2023. "Innovation management of three-dimensional printing (3DP) technology: Disclosing insights from existing literature and determining future research streams," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    19. Stefano Denicolai & Antonella Zucchella & Federico Moretti, 2018. "Not So Similar After All: Exploring The Diversity Of Strategic Orientations For Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-33, May.
    20. Gilvan C. Souza & Barry L. Bayus & Harvey M. Wagner, 2004. "New-Product Strategy and Industry Clockspeed," Management Science, INFORMS, vol. 50(4), pages 537-549, April.

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