TY - JOUR
T1 - The influence of business strategy on new product activity: the role of market orientation
AU - Frambach, R.T.
AU - Prabhu, Jaideep
AU - Verhallen, T.M.M.
PY - 2003
Y1 - 2003
N2 - In this paper, we propose that business strategy influences new product activity both directly and indirectly via its influence on market orientation. Accordingly, we develop a framework linking firms' relative emphasis on cost leadership, product differentiation and focus strategies to firms' customer and competitor orientation as well as their new product development and introduction activity. We use this framework to develop a simultaneous equations model that is tested on survey data from 175 Dutch firms of varying size and across different industries in the manufacturing sector. The surprising findings are that a greater emphasis on a focus strategy results in a decreased emphasis on customer orientation and that competitor orientation has a negative direct influence on new product activity and an indirect positive effect via customer orientation. We discuss the implications of these findings for theory and practice. © 2003 Elsevier Science B.V. All rights reserved.
AB - In this paper, we propose that business strategy influences new product activity both directly and indirectly via its influence on market orientation. Accordingly, we develop a framework linking firms' relative emphasis on cost leadership, product differentiation and focus strategies to firms' customer and competitor orientation as well as their new product development and introduction activity. We use this framework to develop a simultaneous equations model that is tested on survey data from 175 Dutch firms of varying size and across different industries in the manufacturing sector. The surprising findings are that a greater emphasis on a focus strategy results in a decreased emphasis on customer orientation and that competitor orientation has a negative direct influence on new product activity and an indirect positive effect via customer orientation. We discuss the implications of these findings for theory and practice. © 2003 Elsevier Science B.V. All rights reserved.
U2 - 10.1016/j.ijresmar.2003.03.003
DO - 10.1016/j.ijresmar.2003.03.003
M3 - Article
SN - 0167-8116
VL - 20
SP - 377
EP - 397
JO - International Journal of Research in Marketing
JF - International Journal of Research in Marketing
IS - 4
ER -