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Integrating Operations and Marketing Perspectives of Product Innovation: The Influence of Organizational Process Factors and Capabilities on Development Performance

  • Mohan V. Tatikonda


    (Kenan-Flagler Business School, University of North Carolina at Chapel Hill, McColl Building, CB #3490, Chapel Hill, North Carolina 27599-3490)

  • Mitzi M. Montoya-Weiss


    (School of Management, North Carolina State University, Nelson Hall, Campus Box 7229, Raleigh, North Carolina 27695-7229)

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    This paper adopts a multidisciplinary view of innovation by integrating operations and marketing perspectives of product development. The conceptual framework builds on the resource-based view of the firm and organizational information-processing theory to characterize relationships among organizational process factors, product development capabilities, critical uncertainties, and operational/market performance in product development projects. Data from a cross-sectional sample of 120 completed development projects for assembled goods is analyzed via a two-stage hierarchical moderated regression approach. The findings show that: (1) the organizational process factors studied are associated with achievement of operational outcome targets for product quality, unit cost, and time-to-market; (2) achievement of operational outcomes aids the achievement of market outcomes, in turn suggesting that development capabilities are indeed valuable firm resources; and (3) these relationships are robust under conditions of technological, market, and environmental uncertainty. This article provides practical insight into how product development projects can be better managed for operational and market success. Additionally, this article sets a theoretical and empirical basis for future research on the influence of organizational process factors and capabilities on diverse product-innovation outcomes.

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    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 47 (2001)
    Issue (Month): 1 (January)
    Pages: 151-172

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    Handle: RePEc:inm:ormnsc:v:47:y:2001:i:1:p:151-172
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    1. John E. Ettlie, 1995. "Product-Process Development Integration in Manufacturing," Management Science, INFORMS, vol. 41(7), pages 1224-1237, July.
    2. Glen L. Urban & Theresa Carter & Steven Gaskin & Zofia Mucha, 1986. "Market Share Rewards to Pioneering Brands: An Empirical Analysis and Strategic Implications," Management Science, INFORMS, vol. 32(6), pages 645-659, June.
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    5. Paul S. Adler & Avi Mandelbaum & Viên Nguyen & Elizabeth Schwerer, 1995. "From Project to Process Management: An Empirically-Based Framework for Analyzing Product Development Time," Management Science, INFORMS, vol. 41(3), pages 458-484, March.
    6. Ulrich, Karl, 1995. "The role of product architecture in the manufacturing firm," Research Policy, Elsevier, vol. 24(3), pages 419-440, May.
    7. Morris A. Cohen & Jehoshua Eliasberg & Teck-Hua Ho, 1996. "New Product Development: The Performance and Time-to-Market Tradeoff," Management Science, INFORMS, vol. 42(2), pages 173-186, February.
    8. Cooper, Robert G., 1990. "Stage-gate systems: A new tool for managing new products," Business Horizons, Elsevier, vol. 33(3), pages 44-54.
    9. Karl T. Ulrich & David J. Ellison, 1999. "Holistic Customer Requirements and the Design-Select Decision," Management Science, INFORMS, vol. 45(5), pages 641-658, May.
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    11. Frank M. Bass & Alain V. Bultez, 1982. "Technical Note—A Note on Optimal Strategic Pricing of Technological Innovations," Marketing Science, INFORMS, vol. 1(4), pages 371-378.
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