II. THE ROLE OF THE CUSTOMER IN THE DEVELOPMENT OF RADICAL
2.8 Tables
Stage Firm Uncertainties
Consumer Technological Competitive
Idea Generation X X X
Development X X
Launch X
Table 2-4 : Type of Firm Uncertainty by NPD Stage
Table 2-5 : Survey measures, sources, and reliability
Cronbach’s α
Factor Loading Technology Information during individual stages of NPD
Indicate the level (amount) of technology information provided by the customer during the Opportunity Identification and Selection stage of the development of a radical innovation
Indicate the level (amount) of technology information provided by the customer during the Development stage of the development of a radical innovation
Indicate the level (amount) of technology information provided by the customer during the Launch/Commercialization stage of the development of a radical innovation
Market Information during individual stages of NPD
Indicate the level (amount) of Market information provided by the customer during the Opportunity Identification and Selection stage of the development of a radical innovation
Indicate the level (amount) of Market information provided by the customer during the Development stage of the development of a radical innovation
Indicate the level (amount) of Market information provided by the customer during the Launch/Commercialization stage of the development of a radical innovation
Information Acquisition (Gatignon and Xuereb 1997) .868 My business unit had formal or informal processes:
For continuously collecting information from customers .691 For continuously collecting information about competitor’s activities .872 For continuously collecting information about relevant people other than customers and competitors. .808 For continuously reexamining the value of information collected in previous studies. .804 For continuously collecting information from external experts, such as consultants. .697
Information Dissemination (Danneels and Kleinschmidt 2001) .743 At my business unit:
Marketing personnel spend time discussing customers’ future needs with other functional departments. .705 There is minimal communication between marketing and other departments concerning market
developments. (r)
.852
When one department finds out something important about customers, it is slow to alert other departments. (r)
.728
Information Utilization (Maltz and Kohli 1996) .870 At my business unit, the information we received from all sources:
Helped shape our policies. .676
Improved implementation of new products or projects. .750
Improved our productivity. .788
Improved our understanding of the dynamics of the marketplace. .759
Was rarely used. (r) .315
Led to concrete actions. .704
Organizational Memory (Moorman and Miner 1997) .913 Prior to this project, compared to firms in our industry, my business unit had:
A great deal of knowledge about this category. .906
A great deal of experience in this category. .907
A great deal of familiarity in this category. .931
Invested a great deal of R&D in this category. .791
New Product Success (Song and Parry 1997a) .881 Relative to your firm’s other new products, how successful was this from a sales volume standpoint? .851
Relative to your firm’s other new products, how successful was this from a profitability standpoint? .831 Relative to your firm’s objectives for this product, how successful was this product from a profitability
standpoint? .876
Market share (Song and Parry 1997b) .913 Relative to your firm’s other new products, how successful was this product in terms of market share? .872
Relative to competing products, how successful was this product in terms of market share? .868 Relative to your firm’s objectives for this product, how successful was this product in terms of market
share?
.905
Customer Characteristics (Franke and Shah 2003) .857 The customers we obtained information from in the development of this product:
Have benefited significantly by the early adoption and use of new products .789 Have tested prototype versions of new products for manufacturers. .782
Are regarded as “cutting edge” in their fields .855
Improved and developed new techniques in their fields. .881 Had needs which were not satisfied by existing products. .616 Are dissatisfied with the existing products in the market. .492
Technological Innovativeness (Gatignon and Xuereb 1997) .817 This new product is a minor improvement in a current technology. (r) .661
This new product has changed the market conditions. .192
This new product is one of the first applications of a technological breakthrough. .785 This new product is based on a revolutionary change in technology. .852 This new product incorporated a large new body of technological knowledge. .725 This new product has changed the nature of the competition. .253
Market Newness (Danneels and Kleinschmidt 2001) .830 To what extent was this product aimed at new customers to your firm—customers that you had not sold
to before.
.789 To what extent did this product take you up against new competitors—competitor firms that you had
never faced before.
.698 To what extent did this product cater to new customer needs—customer needs that you had not served
before.
.686 To what extent was the market for this product new or different for your firm—new or different from the
markets you normally sell into?
.838 To what extent did this product represent a new product category—a type of product that your firm had
not made and/or sold before. .714
Note: (r) indicates a reverse-coded item
The customers we obtained information from in the development of this product:
Statistics
Usually found out about new products and
solutions earlier than
others.
Have benefited significantly
by the early adoption and
use of new products.
Have tested prototype versions of new products
for manufacturers.
Are regarded as 'cutting edge' in their
fields
Improved and developed
new techniques in
their fields.
Had needs which were not
satisfied by existing products.
Are dissatisfied
with the existing equipment in
the market.
Mean 4.9 5.3 5.4 5.4 5.3 5.7 4.9
Median 5 5.5 6 6 6 6 5
Mode 4 6 6 6 6 6 5
Std.
Deviation 1.4 1.3 1.5 1.5 1.5 1.4 1.6
Table 2-6 : Customer Characteristics Item Results
Variables Mean
Standard
Deviation 1 2 3 4 5 6 7 8 9 10 11 12 13 14
1 Newness of Technology 4.78 1.25 0.82
2 Newness of Market 4.65 1.56 0.37** 0.83
3 Idea Generation - Technology Information 4.33 1.97 0.08 0.15 - 4 Idea Generation - Market Information 4.41 1.99 0.19* 0.11 0.66** - 5 Development - Technology Information 4.15 1.93 0.16* 0.12 0.59** 0.49** - 6 Development - Market Information 3.9 1.88 0.23** 0.03 0.46** 0.68** 0.63** - 7 Launch - Technology Information 3.92 2.06 0.2* 0.19* 0.41** 0.35** 0.56** 0.38** - 8 Launch - Market Information 4.39 1.81 0.28** 0.1 0.21** 0.45** 0.38** 0.58** 0.56** -
9 Information Acquisition 4.49 1.44 0.17* 0.01 0.37** 0.45** 0.42** 0.44** 0.35** 0.33** 0.87 10 Information Utilization 5.15 1.14 0.2* 0.14 0.23** 0.27** 0.35** 0.26** 0.29** 0.37** 0.47** 0.88 11 Information Dissemination 5.25 1.33 0.15 0.04 0.03 0.15 0.07 0.11 0.12 0.18** 0.24** 0.44** 0.74
12 Organizational Memory 4.84 1.69 0.01 -0.23** 0.06 0.04 0.09 0.04 0.07 0.15 0.08 0.12 -0.04 0.91
13 New Product Success 4.87 1.39 0.37** -0.08 0.06 0.12 0.06 0.13 0.07 0.09 0.21** 0.4** 0.33** 0.09 0.88
14 Market Share Performance 4.88 1.36 0.31** -0.04 0.15 0.17* 0.1 0.14 0.06 0.13 0.22** 0.37** 0.27** 0.12 0.79**0.91
Skewness -0.52 -0.38 -0.38 -0.43 -0.37 -0.24 -0.22 -0.45 -0.22 -0.82 -0.65 -0.48 -0.6 -0.7
Kurtosis -0.23 -0.84 -1 -0.93 -0.88 -0.76 -1.06 -0.54 -0.67 0.49 -0.24 -0.82 0.12 0.13
* Correlation is significant at the 0.05 level (2-tailed).
** Correlation is significant at the 0.01 level (2-tailed).
Note: Scale Reliability shown on the diaganol
Table 2-7 : Descriptive statistics and correlations of the scales
Market Share Performance Internal Expectation Performance
Model 1 Model 2 Model 3 VIF Model 4 Model 5 Model 6 VIF
Std. β t Std. β t Std. β t Std. β t Std. β t Std. β t
Control Variables
Newness of Technology 0.37 (4.51)*** 0.38 (4.67)*** 0.44 (4.65)*** 1.68 0.42 (5.17)*** 0.41 (5.21)*** 0.44 (5.15)*** 1.68 Newness of Market -0.21 (-2.5)** -0.21 (-2.57)** -0.16 (-1.7) 1.59 -0.28 (-3.44)*** -0.29 (-3.67)*** -0.26 (-3.1)*** 1.59
Customer Information
Idea Generation - Technology Information 0.25 (2.25)* 0.20 (1.54) 3.17 0.12 (1.13) 0.10 (0.81) 3.17
Idea Generation - Market Information -0.01 (-0.1) -0.03 (-0.19) 3.37 -0.03 (-0.29) -0.04 (-0.35) 3.37
Development - Technology Information -0.06 (-0.54) -0.08 (-0.57) 3.72 -0.06 (-0.58) -0.02 (-0.13) 3.72
Development - Market Information -0.12 (-0.93) 0.01 (0.07) 4.27 -0.01 (-0.1) -0.01 (-0.04) 4.27
Launch - Technology Information -0.11 (-1.05) -0.12 (-1.01) 2.81 -0.01 (-0.07) -0.10 (-0.89) 2.81
Launch - Market Information -0.04 (-0.33) 0.00 (0.03) 2.85 -0.15 (-1.48) -0.08 (-0.67) 2.85
Organizational Learning
Information Acquisition 0.06 (0.61) 0.06 (0.58) 2.05 0.02 (0.22) 0.03 (0.33) 2.05
Information Dissemination 0.14 (1.64) 0.13 (1.41) 1.65 0.18 (2.31)* 0.19 (2.28)* 1.65
Information Utilization 0.24 (2.53)** 0.20 (1.87) 2.22 0.31 (3.5)*** 0.32 (3.2)*** 2.22
Organizational Memory 0.05 (0.59) -0.01 (-0.07) 1.38 0.01 (0.12) -0.05 (-0.6) 1.38
Idea Generation Stage Interactions
Idea Generation*Technology Information*Information Acquisition 0.07 (0.41) 5.35 -0.01 (-0.08) 5.35
Idea Generation*Technology Information*Information Dissemination -0.19 (-1.13) 5.13 -0.05 (-0.35) 5.13
Idea Generation*Technology Information*Information Utilization 0.51 (2.25)* 9.69 0.17 (0.84) 9.69
Idea Generation*Technology Information*Organizational Memory -0.05 (-0.33) 3.96 -0.19 (-1.47) 3.96
Idea Generation*Market Information*Information Acquisition -0.26 (-1.44) 5.96 -0.18 (-1.13) 5.96
Idea Generation*Market Information*Information Dissemination 0.27 (1.49) 6.21 0.09 (0.53) 6.21
Idea Generation*Market Information*Information Utilization -0.07 (-0.3) 9.70 0.22 (1.07) 9.70
Idea Generation*Market Information*Organizational Memory 0.18 (1.16) 4.51 0.29 (2.03)* 4.51
Development Stage Interactions
Development*Technology Information*Information Acquisition -0.20 (-1.14) 5.61 -0.17 (-1.09) 5.61
Development*Technology Information*Information Dissemination 0.14 (0.81) 5.54 0.11 (0.68) 5.54
Development*Technology Information*Information Utilization -0.15 (-0.69) 9.09 -0.15 (-0.76) 9.09
Development*Technology Information*Organizational Memory -0.06 (-0.47) 3.43 0.14 (1.14) 3.43
Development*Market Information*Information Acquisition 0.17 (1) 5.21 0.13 (0.87) 5.21
Development*Market Information*Information Dissemination -0.36 (-1.94) 6.48 -0.38 (-2.23)* 6.48
Development*Market Information*Information Utilization -0.01 (-0.05) 9.99 0.13 (0.62) 9.99
Development*Market Information*Organizational Memory -0.26 (-1.83) 3.75 -0.19 (-1.51) 3.75
Release Stage Interactions
Launch*Technology Information*Information Acquisition -0.05 (-0.28) 6.87 0.06 (0.36) 6.87
Launch*Technology Information*Information Dissemination 0.01 (0.08) 4.01 -0.06 (-0.46) 4.01
Launch*Technology Information*Information Utilization -0.06 (-0.38) 5.14 -0.10 (-0.64) 5.14
Launch*Technology Information*Organizational Memory 0.02 (0.1) 3.99 -0.06 (-0.43) 3.99
Launch*Market Information*Information Acquisition 0.13 (0.94) 3.78 0.18 (1.42) 3.78
Launch*Market Information*Information Dissemination 0.03 (0.19) 4.73 0.09 (0.64) 4.73
Launch*Market Information*Information Utilization -0.09 (-0.47) 6.57 -0.12 (-0.71) 6.57
Launch*Market Information*Organizational Memory 0.12 (0.79) 4.03 -0.04 (-0.28) 4.03
R2 / Adjusted R2 .124 / .113 .282 / .220 .391 / .200 .165 / .154 .344 / .287 .499 / .342
F value 10.60*** 4.55*** 2.05** 14.77*** 6.07*** 3.18***
∆R2 0.16** 0.109 0.18*** 0.16†
Significance F Change 0.002 0.659 0.000 0.087
df1 / df2 2 / 149 12 / 139 36 / 115 2 / 149 12 / 139 36 / 115
*p < .05, **p< .01, ***p<.001
Note: Mean centered scores used for the regression analyses.
Functional Area Frequency Percent Valid Percent
Cumulative Percent
R&D 34 19 23.1 23.1
Management 30 16.8 20.4 43.5
Regulatory
Affairs 27 15.1 18.4 61.9
Marketing 24 13.4 16.3 78.2
Engineering 22 12.3 15.0 93.2
Sales 7 3.9 4.8 98.0
Manufacturing 3 1.7 2.0 100.0
Valid
Total 147 82.1 100.0
Missing System 32 17.9
Total 179 100.0
Innovation Characteristics Percent of Sample FDA Class I (Least
regulated) 14%
FDA Class II 55%
FDA Class III (Most
regulated) 19%
Unclassified 11%
Mean Length of Time on the
Market 2.75 years
Mean Length of Time in
Development 2-3 years Median Selling Price for the
Innovation $1000
Table 2-9 : Sample Descriptive Statistics
Organizational
Memory
Low High
Idea Generation – Market Information
Low +
(6.5)
- (3.6)
High -
(3.5)
+ (6.2)
Table 2-10 : Summary of the Interaction of Idea-Generation Market Information * Organizational Memory on Market Share Performance
Information Utilization
Low High
Idea Generation – Technology Information
Low +
(7)
- (1.8)
High -
(3.6)
+ (7)
Table 2-11 : Summary of the Interaction of Idea-Generation Technology Information * Information Utilization on Market Share Performance
Information
Dissemination
Low High
Development Stage - Market
Information
Low -
(3)
+ (7)
High +
(7)
- (3)
Table 2-12 : Summary of the Interaction of Development Stage - Market Information * Information Dissemination on Market Share Performance