Marketing strategy decision making in new product development: direct effects and moderation by market information time sensitivity and analyzability
European Journal of Innovation Management
ISSN: 1460-1060
Article publication date: 13 June 2022
Issue publication date: 23 November 2023
Abstract
Purpose
Research on market information use in product innovation suggests that firms utilize two key strategic decision-making processes: incremental and comprehensive. Drawing from organizational information processing theory, literature implies that these processes operate differently. However, this assumption remains untested. Moreover, the degree to which a comprehensive process affects the innovation strategy outcomes depends on market information time sensitivity (MITS) and analyzability. To-date, no study has tested these assertions, either. Finally, it is suggested that meaningful market strategy is a key driver of new product success and it is important to understand how decision-making processes influence it under differing time sensitivity and analyzability.
Design/methodology/approach
Based on survey data from 250 Chinese firms, authors use structural equation modeling to test the hypotheses.
Findings
The results generally support authors’ contentions. More specifically, marketing strategy outcomes are influenced by marketing strategy incrementality (MSI) and marketing strategy comprehensiveness (MSC) differently. Further, time sensitivity moderates the effect of both MSI and MSC on outcomes, except for the effect of MSI on decision quality. Finally, analyzability moderates the relationships between decision making processes and certain strategy outcomes such as between MSI and meaningfulness.
Originality/value
Drawing from information processing theory, authors argue that incremental and comprehensive marketing strategy decision making for new product operate differentially under the same conditions. Further, the effects of these decision processes on outcomes depend on time sensitivity and analyzability of market information. Finally, auhtors argue that meaningful market strategy is a driver of success. The authors find support for most of our hypotheses and provide directions for future research.
Keywords
Citation
Durmusoglu, S.S., Atuahene-Gima, K. and Calantone, R.J. (2023), "Marketing strategy decision making in new product development: direct effects and moderation by market information time sensitivity and analyzability", European Journal of Innovation Management, Vol. 26 No. 6, pp. 1619-1648. https://doi.org/10.1108/EJIM-11-2021-0575
Publisher
:Emerald Publishing Limited
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