The link between NPD activities and market volatility : an empirical study

Paul W. Hyland, Claudine A. Soosay, Terrence R. Sloan, Petra C. de Weerd-Nederhof, José Albors Garrigós

    Research output: Chapter in Book / Conference PaperConference Paper

    Abstract

    ![CDATA[New products are unquestionably imperative for business sustainability and success. Firms need to maintain their competitive advantage, and a major determinant of sustaining competitive advantage is the ability of the firm to develop and launch successful new products. There are highly volatile market situations where changes are so rapid and dynamic, which poses many challenges for new product development (NPD) activities. Creating a new product is important, but getting new products to market forms the underpinning motivation of firms which compete in dynamic and volatile markets. This paper investigates the links between NPD activities and market volatility. The nature of the marketplace is an important determinant of how a business positions its NPD activities. In stable markets there is little need for change while in dynamic and turbulent markets with high levels of volatility businesses are under constant pressure to innovate products to address the dynamism of the market demand. The findings indicate that market volatility influences the product volume but not product mix. In terms of NPD strategy the level of volatility in the market has a minor effect on NPD goals but would appear to have little effect on the overall strategy. NPD trajectories are not easily altered and our results confirm this as volatility in the market has no effect on the direction and nature of NPD activities and little effect on NPD process activities with the exception of idea generation in some environments.]]
    Original languageEnglish
    Title of host publicationRadical Changes in Innovation Management: Proceedings of the 9th International CINet Conference, held in Valencia, Spain, 5-9 September, 2008
    PublisherContinuous Innovation Network
    Number of pages12
    ISBN (Print)9789077360101
    Publication statusPublished - 2008
    EventInternational CINet Conference -
    Duration: 1 Jan 2008 → …

    Conference

    ConferenceInternational CINet Conference
    Period1/01/08 → …

    Keywords

    • new products
    • marketing
    • market volatility
    • new product development

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