TY - JOUR
T1 - The impacts of speed-to-market on new product success
T2 - The moderating effects of uncertainty
AU - Chen, Jiyao
AU - Reilly, Richard R.
AU - Lynn, Gary S.
PY - 2005/5
Y1 - 2005/5
N2 - Time-based strategy is becoming an important weapon to achieve competitive advantage in the current environment of fast-changing technology and customer requirements. Speed-to-market has become the mantra of both researchers and practitioners in new product development (NPD), but there are limited and conflicting findings on the relationship between speed-to-market and product success. A more important question is whether faster is always better. In a study of 692 NPD projects, we examined the relationship between speed-to-market and new product success (NPS) under different conditions of uncertainty. Our results indicate that speed-to-market is generally positively associated with overall NPS, but market uncertainty moderates the direct effect. Speed-to-market is less important to NPS under conditions of low market uncertainty. Our results also suggest that technological uncertainty does not affect the speed-success relationship. The implication is that it is more important to execute a time-based strategy in an unfamiliar, emerging, or fast-changing market than in a familiar, existing, and stable market. The limitations and future research related to these results are discussed.
AB - Time-based strategy is becoming an important weapon to achieve competitive advantage in the current environment of fast-changing technology and customer requirements. Speed-to-market has become the mantra of both researchers and practitioners in new product development (NPD), but there are limited and conflicting findings on the relationship between speed-to-market and product success. A more important question is whether faster is always better. In a study of 692 NPD projects, we examined the relationship between speed-to-market and new product success (NPS) under different conditions of uncertainty. Our results indicate that speed-to-market is generally positively associated with overall NPS, but market uncertainty moderates the direct effect. Speed-to-market is less important to NPS under conditions of low market uncertainty. Our results also suggest that technological uncertainty does not affect the speed-success relationship. The implication is that it is more important to execute a time-based strategy in an unfamiliar, emerging, or fast-changing market than in a familiar, existing, and stable market. The limitations and future research related to these results are discussed.
KW - New product success
KW - Speed-to-market
KW - Uncertainty
UR - http://www.scopus.com/inward/record.url?scp=18544369915&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=18544369915&partnerID=8YFLogxK
U2 - 10.1109/TEM.2005.844926
DO - 10.1109/TEM.2005.844926
M3 - Article
AN - SCOPUS:18544369915
SN - 0018-9391
VL - 52
SP - 199
EP - 212
JO - IEEE Transactions on Engineering Management
JF - IEEE Transactions on Engineering Management
IS - 2
ER -