New product launch actions and firm performance: The effects of breadth, complexity and heterogeneity

PurposeThis paper aims to examine the effect of new product launch actions and firm reputation on firm performance in the Chinese auto industry.Design/methodology/approachThis analysis adopts empirical data from 66 auto firms in China’s auto market from 2007 to 2012 to explore how new product launch...

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Bibliographic Details
Published in:Chinese management studies 2018-03, Vol.12 (1), p.79-105
Main Authors: Liu, Yang, Cheng, Peng, Zhao, Dingtao
Format: Article
Language:English
Subjects:
Competition
Competitive advantage
Complexity
Decision making
Empirical analysis
Heterogeneity
Market entry
Market shares
Price cuts
Product development
Regression models
Reputations
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Summary:PurposeThis paper aims to examine the effect of new product launch actions and firm reputation on firm performance in the Chinese auto industry.Design/methodology/approachThis analysis adopts empirical data from 66 auto firms in China’s auto market from 2007 to 2012 to explore how new product launch actions undertaken by a firm can contribute to achieving superior performance and to investigate the relationships between new product launch actions and firm performance. Moreover, how firm reputation interacts with new product launch actions to affect firm performance is also investigated. Fixed effects regression model following the Hausman specification test was used to quantitatively examine the relationship.FindingsIt was concluded that the focal firm’s new product launch actions, including new product launch breadth, complexity and heterogeneity of its new repertoire of product launch actions, and firm reputation can impact its performance. Firm reputation can impact the signaling process and the capability of firms to enhance their performance via new product launch movements.Originality/valueThis research contributes to new product launch research by providing a more comprehensive view of competitive dynamic actions by which a firm’s performance is strengthened by examining the effects of two factors that affect performance. These factors are as follows: the characteristics in terms of breadth, complexity, and heterogeneity of new product launch actions undertaken by a firm and the characteristic of firm reputation.
ISSN:1750-614X
1750-6158
DOI:10.1108/CMS-06-2017-0156