Full citation

Beverland, M.B., Ewing, M.T. & Jekanyika Matanda, M. (2006). Driving-Market or Market-Driven? A Case Study Analysis of the New Product Development Practices of Chinese Business-to-Business Firms. Industrial Marketing Management, 35(3), 383-393.

Format: Peer-reviewed article

Type: Research — Non-experimental

Experience level of reader: Advanced

Annotation: Multiple case studies of Chinese firms identified factors critical to new product success.

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

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

Knowledge user level addressed by the literature: Sector

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

Primary Findings

Models:

  • Use strategic actions to increase new product success by driving a market with innovation, but limiting entrepreneurial activities with pre-determined plans.
    Case studies.
  • Governments should consider incentive to increase new product innovation including tax rebates, grants, venture capital, and incubators.
    Case studies.
  • Chinese firms should use a market driving approach to achieve new product success.
    Case Studies.
  • Focus on driving-market activity rather than market-driven activity to ensure more success (market share, growth, etc).
    Case studies.
  • Chinese firms can be clustered by new product development approaches including: strategic, relational, emergent followers, and sales orientation.
    Case studies.

Method: To drive a market, (Chinese firms should) look to new markets and identify new resources that can drive innovation.
Case studies.

Secondary Findings

Models:

  • A clearly defined new product strategy leads to new product success. (Cooper & Kleinschmidt, 1996; Griffin, 1997)
  • There are advantages for US firms in using a market driving approach. (Lynn, Mazzuca, Morone, & Paulson, 1998)
  • A strategic approach to business to business relationships helps improve new product success for US firms. (Zirger & Maidique, 1990)
  • Top management support can take too much control over the new product development process, inhibiting new product success. (Bonner, Ruekert & Walker, 2002; Yap & Souder, 1994)
  • Strategic approach to new product development contributes most to new product success. (Ernst, 2002)
    Occurrence of finding within the model: Step 1.5
  • Reactive learning styles can result in low quality market-oriented outcomes. (Baker & Sinkula, 1999)

Method: Supplier relationships should be closely linked to facilitate the introduction of new technology prior to the competition, thereby encouraging new product success. (Bonaccorsi & Lipparini, 1994; Meyers & Athaide, 1991)