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The Mixed Blessings of Technological Innovativeness for the Commercial Success of New Products
Author(s) -
Kock Alexander,
Gemünden Hans Georg,
Salomo Søren,
Schultz Carsten
Publication year - 2011
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/j.1540-5885.2011.00859.x
Subject(s) - order (exchange) , business , industrial organization , marketing , technological change , sample (material) , contradiction , competitive advantage , product (mathematics) , new product development , economics , philosophy , chemistry , geometry , mathematics , finance , chromatography , epistemology , macroeconomics
This study addresses the contradiction that, although technological innovativeness of new products is often seen as a major driver of competitive advantage and commercial success, empirical research is not always able to show a significant performance influence. In order to find an explanation, the effects of technological innovativeness are decomposed as its influence on the market, the innovating firm, and the firm's environment is considered. The proposed model is tested on a sample of new product development projects. In order to avoid systematic biases, this paper uses a longitudinal survey design with two informants and a sample that includes both incremental and highly innovative projects. The results show that technological innovativeness has both positive and negative effects on the commercial success of new products. On the one hand, technological innovativeness can increase customer value, which in turn has a positive effect on success. On the other hand, incorporating new technologies into new products also implies changes in the innovating firm and potentially in its environment. These changes have a negative impact on commercial success. The positive and negative effects compensate for each other, so that the total effect of technological innovativeness on commercial success is close to zero. The findings imply that firms developing new products through incorporating radically new technologies often seem to underestimate the inherent complexities with respect to both internal and external changes. Developing and introducing new products with a radically changed technology also implies anticipating the need for new competences, processes, structures, and network partners. Social and political resistance against technological changes, large investments in new infrastructures, and the long duration of these changes additionally become frequent features of such innovation endeavors. Hence, firms embarking on a path of exploiting radically new technologies should consider those complexities very carefully when making their new product development decisions.