Modeling market information processing in new product development: An empirical analysis

  • Authors:

  • Erik Veldhuizen;Erik Jan Hultink;Abbie Griffin

  • Affiliations:

  • Delft University of Technology, Faculty of Industrial Design Engineering, Landbergstraat 15, 2628 CE Delft, The Netherlands;Delft University of Technology, Faculty of Industrial Design Engineering, Landbergstraat 15, 2628 CE Delft, The Netherlands;University of Utah, David Eccles School of Business, 1645 East Campus Center Drive, Office KDGB 209, Salt Lake City, UT 84112-9301, United States

  • Venue:
  • Journal of Engineering and Technology Management
  • Year:
  • 2006

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Abstract

This research explores the antecedents and consequences of market information processing during the development process of new high-tech products. To this end, we develop and test a conceptual model for market information processing in three generic stages of the new product development (NPD) process (predevelopment, development and commercialization). In addition, we explore the relationships between market information processing, its antecedents, and product advantage and success. We test our model with responses from 166 NPD-managers in Dutch high-tech firms. The findings show that the market information processing variables are related differentially to new product outcomes, even when controlling for product advantage and product newness to the market. In addition, we found that companies can enhance market information processing for new high-tech products by influencing project priority and flexibility to new products, and by reducing interdepartmental conflict.