Product development strategy, product innovation performance, and the mediating role of knowledge utilization: Evidence from subsidiaries in China

Junfeng ZHANG*, C. Anthony Di Benedetto, Scott Hoenig

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

59 Citations (Scopus)

Abstract

This study examines the interplay of product development strategy, knowledge utilization, and product innovation performance in the context of Chinese subsidiaries of multinational companies. When firms strive to develop highly innovative products (breakthrough focus), the amount of resources allocated has a U-shaped relationship to subsequent product innovation performance (i.e., market rewards of new products). When the aim of product development activity is to reinforce and maintain moderately innovative products (platform focus), increased resource allocation shows a positive relationship to product innovation performance. The amount of resources allocated to minor revisions (incremental focus) shows no significant relationship to product innovation performance. Knowledge utilization is an important predictor of the benefits of developing highly and moderately innovative products. Moreover, it helps to mitigate the drawbacks of a breakthrough focus and strengthens the positive impact of a platform focus.

Original languageEnglish
Pages (from-to)42-58
Number of pages17
JournalJournal of International Marketing
Volume17
Issue number2
DOIs
Publication statusPublished - 2009

Scopus Subject Areas

  • Business and International Management
  • Marketing

User-Defined Keywords

  • China
  • Knowledge utilization
  • Product development strategy
  • Product innovation performance
  • Subsidiaries

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