Integrating Operations and Marketing Perspectives of Product Innovation: The Influence of Organizational Process Factors and Capabilities on Development Performance

This paper adopts a multidisciplinary view of innovation by integrating operations and marketing perspectives of product development. The conceptual framework builds on the resource-based view of the firm and organizational information-processing theory to characterize relationships among organizati...

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Bibliographic Details
Published in:Management science 2001-01, Vol.47 (1), p.151-172
Main Authors: Tatikonda, Mohan V, Montoya-Weiss, Mitzi M
Format: Article
Language:English
Subjects:
Customer satisfaction
Development Performance
Development projects
Information processing
Innovation
Integrated Performance Measurement Systems
Interdisciplinary Research
Management science
Manufacturing
Marketing
Marketing strategies
Modeling
Multilevel models
New Product Development
Observation
Operations management
Operations research
Product development
Product innovation
Product quality
Project Management
Studies
Success
Technological change
Technological Innovation
Technology
Time to market
Unit costs
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Summary:This paper adopts a multidisciplinary view of innovation by integrating operations and marketing perspectives of product development. The conceptual framework builds on the resource-based view of the firm and organizational information-processing theory to characterize relationships among organizational process factors, product development capabilities, critical uncertainties, and operational/market performance in product development projects. Data from a cross-sectional sample of 120 completed development projects for assembled goods is analyzed via a two-stage hierarchical moderated regression approach. The findings show that: (1) the organizational process factors studied are associated with achievement of operational outcome targets for product quality, unit cost, and time-to-market; (2) achievement of operational outcomes aids the achievement of market outcomes, in turn suggesting that development capabilities are indeed valuable firm resources; and (3) these relationships are robust under conditions of technological, market, and environmental uncertainty. This article provides practical insight into how product development projects can be better managed for operational and market success. Additionally, this article sets a theoretical and empirical basis for future research on the influence of organizational process factors and capabilities on diverse product-innovation outcomes.
ISSN:0025-1909
1526-5501
DOI:10.1287/mnsc.47.1.151.10669