TY - JOUR
T1 - Product development strategy, product innovation performance, and the mediating role of knowledge utilization
T2 - Evidence from subsidiaries in China
AU - Zhang, Junfeng
AU - Di Benedetto, C. Anthony
AU - Hoenig, Scott
N1 - The work described in this article was supported financially by Temple University, Temple CIBER, and Monterey Institute of International Studies.
PY - 2009
Y1 - 2009
N2 - 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.
AB - 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.
KW - China
KW - Knowledge utilization
KW - Product development strategy
KW - Product innovation performance
KW - Subsidiaries
UR - http://www.scopus.com/inward/record.url?scp=67649920810&partnerID=8YFLogxK
U2 - 10.1509/jimk.17.2.42
DO - 10.1509/jimk.17.2.42
M3 - Journal article
AN - SCOPUS:67649920810
SN - 1069-031X
VL - 17
SP - 42
EP - 58
JO - Journal of International Marketing
JF - Journal of International Marketing
IS - 2
ER -
