Moderating Market Characteristics

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This paper provides support for the moderating effect of market characteristics such as demand uncertainty and market growth on the performance of innovations. Following is a brief summary of the paper. Introduction: This paper investigates the relationships among a firm's strategic orientation, the characteristics of the innovations brought to market, and new product performance. The definition of a firm's strategic orientation is broadened to include three components: the market orientation, the competitive orientation, and the technological orientation. The purpose of this paper is that the characteristics of innovations as well as their commercial performance depend on the strategic orientation of the firm and also importance of each strategic orientation component is viewed as contingent upon the market characteristics facing the firm. Following hypothesis are tested: Hypothesis: H1: The greater a new product's relative advantage, the more radical it is and the lower its cost, the better the performance of this new product. H2: The more customer, competitor and technology oriented firms are, the greater the relative advantage of their innovations. These three orientations (customer, technological…show more content…
The role of the organization's strategic orientation on new product development is central to the performance of a firm. This paper provided some support for the moderating effect of some market characteristics (demand uncertainty and market growth) on the performance of innovations. This study presents evidence from a large number of firms in a varied set of industries, which enables the discovery of principles governing firms which generalize across markets. Nevertheless, this study is subject to typical limitations such as the response rate, although typical, can lead to the possibility of response

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