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Product—Market Choices and Growth of New Businesses
Author(s) -
Cardozo Richard,
McLaughlin Karen,
Harmon Brian,
Reynolds Paul,
Miller Brenda
Publication year - 1993
Publication title -
journal of product innovation management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.646
H-Index - 144
eISSN - 1540-5885
pISSN - 0737-6782
DOI - 10.1111/1540-5885.1040331
Subject(s) - new product development , product (mathematics) , yield (engineering) , miller , marketing , product market , economics , sample (material) , market share , industrial organization , product line , business , microeconomics , mathematics , ecology , chemistry , materials science , chromatography , biology , metallurgy , incentive , engineering , manufacturing engineering , geometry
The relationship between product–market strategies and the growth of new firms is incompletely understood. The lack of understanding reflects the absence of a conceptual framework that would explain why certain product–market strategies achieve specified goals more effectively than do others. Prior research links product and market strategy to business growth, but does not clearly separate product line choices from market choices, and provides little guidance with respect to the sequence in which product and market changes should be made. Richard Cardozo, Karen McLaughlin, Brian Harmon, Paul Reynolds, and Brenda Miller propose a “wave” model of product–market choice, which yields hypotheses they evaluate with data from a subsample of 120 firms drawn from a representative sample of new businesses. Results yield preliminary guidelines for product–market strategy for managers of fledgling businesses.