Product Development Strategy, Product Innovation Performance, and the Mediating Role of Knowledge Utilization: Evidence from Subsidiaries in China

Journal of International Marketing, Vol. 17, No. 2, pp. 42-58, June 2009

Posted: 28 Feb 2012

See all articles by junfeng zhang

junfeng zhang

affiliation not provided to SSRN

Anthony Di Benedetto

Temple University

Scott Hoenig

affiliation not provided to SSRN

Date Written: 2009

Abstract

This study examines the interplay of product development strategy, knowledge utilization, and product innovation performance in the context of Chinese subsidiaries of multinational companies. When firms strive to develop highly innovative products (breakthrough focus), the amount of resources allocated has a U-shaped relationship to subsequent product innovation performance (i.e., market rewards of new products). When the aim of product development activity is to reinforce and maintain moderately innovative products (platform focus), increased resource allocation shows a positive relationship to product innovation performance. The amount of resources allocated to minor revisions (incremental focus) shows no significant relationship to product innovation performance. Knowledge utilization is an important predictor of the benefits of developing highly and moderately innovative products. Moreover, it helps to mitigate the drawbacks of a breakthrough focus and strengthens the positive impact of a platform focus.

Suggested Citation

zhang, junfeng and Di Benedetto, Anthony and Hoenig, Scott, Product Development Strategy, Product Innovation Performance, and the Mediating Role of Knowledge Utilization: Evidence from Subsidiaries in China (2009). Journal of International Marketing, Vol. 17, No. 2, pp. 42-58, June 2009. Available at SSRN: https://ssrn.com/abstract=2012719

Junfeng Zhang

affiliation not provided to SSRN ( email )

Scott Hoenig

affiliation not provided to SSRN ( email )

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