Full citation

Nystrom, H. (1985). Product Development Strategy: An Integration of Technology and Marketing. Journal of Product Innovation Management, 2(1), 25-33.

Format: Non-peer-reviewed article

Type: Research — Non-experimental

Experience level of reader: Fundamental

Annotation: An examination was conducted of 171 firms over the course of a ten year period. This paper reviewed an in-depth analysis of four case examples, pulled from the larger study. Results indicate that higher levels of technological innovation are achieved when companies have an external orientation — combining R&D technologies from different specialized areas. However, more closed strategies — solated technology use, focus on product modifications rather than new products, and pleasing existing customers — may help an organization to more efficiently use their resources.

Setting(s) to which the reported activities/findings are relevant: Large business, Small business (less than 500 employees)

Knowledge user(s) to whom the piece of literature may be relevant: Manufacturers

Knowledge user level addressed by the literature: Organization

This article uses the Commercial Devices and Services version of the NtK Model

Primary Findings

Measure: Three measures of technological innovation are: degree of novelty or uniqueness, degree of patent protection and time required for development.
Survey of 171 firms.
Occurrence of finding within the model: Tip 2.4

Tips:

  • Combining R&D technology from multiple fields leads to more innovative solutions than isolated technology use.
    Survey of 171 firms.
    Occurrence of finding within the model: Tip 2.4
  • High levels of technological innovation are needed to produce highly competitive new products; may ease the patent protection process; and require longer timelines to complete development activities.
    Survey of 171 firms.
    Occurrence of finding within the model: Tip 2.4
  • Market and technology strategies must match the company structure, be explicit, and be integrated into the larger framework of the organization's new product development strategy.
    Survey of 171 firms.
    Occurrence of finding within the model: Step 2.2
  • Open strategies — involving synergistic technology use, an external technology orientation, product diversification, and focus on new customer acquisition are more appropriate in highly changing and uncertain environments. Also, open technology strategies tend to be associated with more technological success. A closed strategy involving isolated technology use, an internal technology orientation, product modification approach, and focus on existing customers — is more appropriate in stable and predictable environments. Closed strategies may lead to more efficient use of existing resources.
    Survey of 171 firms.
    Occurrence of finding within the model: Tip 1.3