Strategic impact of new product development on export involvement

Abstract

Purpose

This study seeks to evaluate the importance of new product development cycle time for firms that have a strategy of pursuing exporting as a means of achieving and sustaining competitive advantage.

Design/methodology/approach

A mail survey utilizing the key informant approach for selecting senior executives of US manufacturing firms was chosen because of the importance of executive involvement in international marketing strategy decisions.

Findings

This study supports the argument that faster new product development capability must be augmented for firms striving for a higher degree of export involvement. Additionally, the importance of integrating the marketing, R&D, and engineering functions to develop competitive advantage is highlighted.

Research limitations/implications

Results must be interpreted as explorative since the sample was based on US manufacturing firms. Additional research is needed to test differential effects of innovative product and modification/extension cycle time on export involvement and other indicators of performance.

Practical implications

This study demonstrates the importance of the resource‐based theory of competitive advantage, new product development cycle time as a determinant of export involvement, and competitive advantage for firms which pursue international opportunities. It suggests that product development capabilities are not a critical determining factor of the level of export involvement. The findings show that the ability to develop competitive products faster than competitors is a prerequisite for export involvement.

Originality/value

This study suggests that the speed of new product development is a precondition for export involvement and that the new product development cycle time measures were significantly related to the perception of a firm's overall competitive position in global markets.

Citation

Lim, J., Sharkey, T.W. and Heinrichs, J.H. (2006), "Strategic impact of new product development on export involvement", European Journal of Marketing, Vol. 40 No. 1/2, pp. 44-60. https://doi.org/10.1108/03090560610637301