New Product Development Speed: Too Much of a Good Thing?

Journal of Product Innovation Management, Forthcoming

37 Pages Posted: 25 Apr 2010 Last revised: 23 Feb 2013

See all articles by Jiyao Chen

Jiyao Chen

Oregon State University

Richard R. Reilly

Stevens Institute of Technology - School of Business

Gary Lynn

Stevens Institute of Technology - School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: December 28, 2009

Abstract

New product development (NPD) speed has become increasingly important for managing innovation in fast-changing business environments. In this work, we question the implicit assumption that speed has a linear relationship with success from the perspectives of time-compression diseconomies and absorptive capacity. We further argue that time-compression diseconomies depend on the levels of uncertainty involved in NPD projects. Using survey data from 471 NPD projects, we found that NPD speed has a reverse U-shaped relationship with new product success, and the nature of the speed–success relationship varies depending on type and level of uncertainty. The findings suggest NPD teams take different time-based strategies in emerging markets versus fast-changing markets. Moreover, NPD teams need to balance how fast they can go with how fast they need to go by considering team and customer absorptive capacity.

Keywords: New Product Development Speed, Time Compression Diseconomies, Absorptive Capacity, Uncertainty, New Product Success, market newness, market turbulence

JEL Classification: M11, M13, M31

Suggested Citation

Chen, Jiyao and Reilly, Richard R. and Lynn, Gary S., New Product Development Speed: Too Much of a Good Thing? (December 28, 2009). Journal of Product Innovation Management, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1595664 or http://dx.doi.org/10.2139/ssrn.1595664

Jiyao Chen (Contact Author)

Oregon State University ( email )

Corvallis, OR 97331
United States
5417376338 (Phone)

Richard R. Reilly

Stevens Institute of Technology - School of Business ( email )

Hoboken, NJ 07030
United States

Gary S. Lynn

Stevens Institute of Technology - School of Business ( email )

Hoboken, NJ 07030
United States

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