Product Innovativeness and Entry Strategy: Impact on Cycle Time and Break‐even Time

Product Innovativeness and Entry Strategy: Impact on Cycle Time and Break‐even Time New product development time, or cycle time, has become a critical competitive variable, particularly for small high‐tech manufacturing firms. The business press is filled with examples about large firms that have successfully reduced cycle time. This article investigates the relative impact of product innovation and entry strategy on cycle time and initial market performance of small firms. Using a sample of seventy‐three small manufacturing firms, Abdul Ali, Robert Krapfel, Jr., and Douglas LaBahn find that faster product development is associated with shorter break‐even time. Their results also indicate that these firms are achieving shorter cycle time not by sacrificing product quality, but by keeping the technical content of the product simple. Past research has not taken into account this relationship, and this may be one of the reasons why researchers have often suggested conflicting impact of entry strategy on market performance. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Journal of Product Innovation Management Wiley

Product Innovativeness and Entry Strategy: Impact on Cycle Time and Break‐even Time

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Publisher
Wiley
Copyright
© 1995 Elsevier Science Publishing Co., Inc.
ISSN
0737-6782
eISSN
1540-5885
D.O.I.
10.1111/1540-5885.t01-1-1210030
Publisher site
See Article on Publisher Site

Abstract

New product development time, or cycle time, has become a critical competitive variable, particularly for small high‐tech manufacturing firms. The business press is filled with examples about large firms that have successfully reduced cycle time. This article investigates the relative impact of product innovation and entry strategy on cycle time and initial market performance of small firms. Using a sample of seventy‐three small manufacturing firms, Abdul Ali, Robert Krapfel, Jr., and Douglas LaBahn find that faster product development is associated with shorter break‐even time. Their results also indicate that these firms are achieving shorter cycle time not by sacrificing product quality, but by keeping the technical content of the product simple. Past research has not taken into account this relationship, and this may be one of the reasons why researchers have often suggested conflicting impact of entry strategy on market performance.

Journal

The Journal of Product Innovation ManagementWiley

Published: Jan 1, 1995

References

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