The Effect Of Market Orientation On New Product Performance, The Moderating Effect Of Supplier Involvement, And The Mediating Role Of Proficiency In New Product Development

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Date
2011-08
Authors
Wangbenmad, Chutima
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Publisher
Universiti Sains Malaysia
Abstract
New product success is important for organizational survival in rapidly changing environments. The aims of this study is to investigate the impact of three dimensions of market orientation (MO), namely generation of market intelligence, dissemination and responsiveness on the success of new product in the marketplace. The proficiency of new product development (NPD) is posited as a mediator variable, while supplier involvement is treated as a moderating variable on the relationship between MO and proficiency of NPD. Responses to a structure survey instrument were solicited from marketing as well as technical personnel who have had experience in new product development. A total of 103 electronics and electrical firms participated in this study. The findings showed that responsiveness to market intelligence and dissemination of market intelligence are statistically significant and have positive effect on new product performance. Further, dissemination of market intelligence is the key determinant to the proficiency of all the five stages in NPD - idea development and initial screening; market analysis; technical development; product testing; and product commercialization. While the generation of market intelligence is positively associated with the proficiency in technical development and proficiency in product commercialization, responsiveness to market intelligence is found to be positively associated with the early stages of NPD - idea development & initial screening and market analysis.
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Keywords
Market Orientation , Mediating Role Of Proficiency In New Product Development
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