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Design Orientation and New Product Performance

Raji Srinivasan

Gary L. Lilien

Innovation and Strategy

ISBN: 978-1-78754-829-9, eISBN: 978-1-78754-828-2

Publication date: 3 July 2018

Abstract

Purpose

The products of some firms emerge neither from new technology developments nor from attempting to address articulated consumers’ needs, but from a company-internal design-driven approach. To explore this design-driven approach, we propose a construct, design orientation, as a firm’s ability to integrate functionality, aesthetics, and meaning in its new products. We hypothesize relationships between a firm’s design orientation, customer orientation, technological orientation, and willingness to cannibalize on its new product performance.

Methodology/approach

We use data from surveys of senior marketing executives entrusted with design in 252 US firms, we validate the construct of design orientation and establish its distinctiveness from related constructs of creativity, technological orientation, and customer orientation. Using a structural equation modeling approach, we test the hypotheses and find support for them.

Findings

Individually, design orientation, technological orientation, and customer orientation improve new product performance. In addition, customer orientation decreases the positive effect of design orientation while willingness to cannibalize increases the positive effect of design orientation on new product performance.

Implications for theory and/or practice

More than two-thirds of respondents (69%) perceive that their firm can improve its new product performance by increasing its design orientation, an overlooked organizational capability.

Originality/value

Although practitioners have acknowledged the importance of design as a strategic marketing issue, there is little in the literature on how firms can benefit from building capabilities in the design domain, the issue we focus on in this research.

Keywords

Acknowledgements

Acknowledgments

The authors thank the Institute for the Study of Business Markets for funding support and Sandeep Arora, Ethan Burris, Craig Crossland, Frank Germann, Abbie Griffin, Praveen Kopalle, Luis Martins, Violina Rindova, Debika Sihi, Johanna Slot, Hari Sridhar for feedback on earlier versions of the manuscript and George Day, Don Lehmann, Christian Schulze, Christophe Van den Bulte, and seminar participants at the Rotterdam School of Management for their feedback on the research.

Citation

Srinivasan, R. and Lilien, G.L. (2018), "Design Orientation and New Product Performance", Innovation and Strategy (Review of Marketing Research, Vol. 15), Emerald Publishing Limited, Leeds, pp. 229-253. https://doi.org/10.1108/S1548-643520180000015011

Publisher

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Emerald Publishing Limited