1. Why some new products are more successful than others? Henard, D., Szymanski, D. (2001) Yali Chai Siru Liesola Ella Leppänen Susanna Mikkola Johanna Rauhala

2. Assignment Present different typologies for predictors of new product performance Create your own typology How is your typology better than those taken from literature? Typology presented in the article Two alternative typologies Our new typology 1/15

3. Typology presented in the article Product Firm Strategy Firm Processes Market place Product: Price Innovativeness Advantage Meets customer needs Technological sophistication Marketing synergy Technological synergy Order of entry Dedicated HR Dedicated R&D Structured approach Reduced cycle time Market orientation Customer input Cross-functional integration Senior management support Predevelopment proficiency Marketing task proficiency Technological proficiency Launch proficiency Likelihood of competitive response Competitive response intensity Market potential Different categories All predictors Dominant predictors The predictor performance relationships can vary by: measurement factors the use of multi-item scales vs. single-item scales subjective vs. objective measures of performance senior vs. project management reporting short-term vs. long-term contextual factors services vs. goods Asian vs. North American markets competition in high-tech vs. low-tech market +Good categories +Comprehensive research of successful products -Lack of top management’s contribution -Lack of implications of failed products -Lack of organizational insights -Difficult to get exact results based on meta-analysis 2/15 Meta-analysis of new product performance Literature collection of 41 studies with 798 correlations

4. Alternative typology: Evanschitzky, Eisend, Calantone & Jiang (2012) Product Characteristics Marketing synergy Technological synergy Order of entry Dedicated HR Dedicated R&D Product price Innovativeness Advantage Meets customer needs Technological sophistication Structured approach Reduced cycle time Market orientation Customer input Cross-functional integration Senior management support Predevelopment proficiency Marketing task proficiency Technological proficiency Launch proficiency Likelihood of competitive response Competitive response intensity Market potential Different categories Climate Size Design External relations Degree of centralization Degree of formalization Strategy Characteristics Process Characteristics Marketplace Characteristics Organizational Characteristics All predictors Dominant predictors 3/15

5. Alternative typology: Evanschitzky, Eisend, Calantone & Jiang (2012) Product Characteristics Marketing synergy Technological synergy Order of entry Dedicated HR Dedicated R&D Product price Innovativeness Advantage Meets customer needs Technological sophistication Structured approach Reduced cycle time Market orientation Customer input Cross-functional integration Senior management support Predevelopment proficiency Marketing task proficiency Technological proficiency Launch proficiency Likelihood of competitive response Competitive response intensity Market potential Different categories Climate Size Design External relations Degree of centralization Degree of formalization Strategy Characteristics Process Characteristics Marketplace Characteristics Organizational Characteristics All predictors Dominant predictors 4/15

6. Alternative typology: Evanschitzky, Eisend, Calantone & Jiang (2012) Product Characteristics Marketing synergy Technological synergy Order of entry Dedicated HR Dedicated R&D Product price Innovativeness Advantage Meets customer needs Technological sophistication Structured approach Reduced cycle time Market orientation Customer input Cross-functional integration Senior management support Predevelopment proficiency Marketing task proficiency Technological proficiency Launch proficiency Likelihood of competitive response Competitive response intensity Market potential Different categories Climate Size Design External relations Degree of centralization Degree of formalization Strategy Characteristics Process Characteristics Marketplace Characteristics Organizational Characteristics All predictors Dominant predictors Working culture has a strong impact on the correlation between predictors and success Organizational characteristics have stronger effect on services than products (Climate) Western countries than Asia (Climate) high-tech than low-tech industry (Design) -lack of explanation for each predictors What are the criterion for proficiency? -the research result is inconsistent with other research works meeting customer needs and order of entry have a little effect on success?  lack of examples which provide deeper reasoning for why certain predictors are negligible 5/15

7. Alternative typology: Montoya-Weiss & Calantone (1994) Three forms of analysis: Fisher Combined test, Correlation Effect Size test and Summary Counts Company resources Product Advantage Strategy Marketing synergy Technological synergy Market potential Market competitiveness Environment Speed to market Costs Financial/business analysis Proficiency of predevelopment activities Proficiency of market-related activities Proficiency of technological activities Top management support, control and skills Protocol Internal/external communication Organizational factors Different categories Strategic Factors Market Environment Factors Development Process Factors Organizational Factors Dominant predictors All predictors 6/15

8. Alternative typology: Montoya-Weiss & Calantone (1994) Company resources Product Advantage Strategy Marketing synergy Technological synergy Market potential Market competitiveness Environment Speed to market Costs Financial/business analysis Proficiency of predevelopment activities Proficiency of market- related activities Proficiency of technological activities Top management support, control and skills Protocol Internal/external communication Organizational factors Different categories Strategic Factors Market Environment Factors Development Process Factors Organizational Factors Dominant predictors Product Characteristics Product price Innovativeness Meets customer needs Technological sophistication All predictors 7/15 Added Organizational Factors Lacks Product Characteristics

9. Alternative typology: Montoya-Weiss & Calantone (1994) strategy and development process factors are the most important determinants → successful firms develop a superior product that is attuned to customer wants and needs and they have strong marketing and technical knowledge to launch the product Company resources Product Advantage Strategy Marketing synergy Technological synergy Market potential Market competitiveness Environment Speed to market Costs Financial/business analysis Proficiency of predevelopment activities Proficiency of market- related activities Proficiency of technological activities Top management support, control and skills Protocol Internal/external communication Organizational factors -l acks the consideration of intangible assets, such as brand value and customer loyalty on product performance -lacks focus on the intellectual capital of the firm or the dedication and motivation of the workforce (employee engagement) -conclusions drawn from a meta-analysis are limited and thus subject to publication bias → need for further research Different categories Strategic Factors Market Environment Factors Development Process Factors Organizational Factors Dominant predictors All predictors 8/15

10. Our suggestions

11. Extending the Henard & Szymanski typology ➔ Brand ◆ Brand image has a huge impact on attractiveness of both products and services. In case the consumer feels that a company acts responsibly, products manufactured by this company are thus more desirable than its rivals. ◆ Specification with homogenous products can be challenging; the companies need to consider different ways to set themselves apart in order to add value to customers. ◆ On the other hand brand loyalty diminishes in the future. Generation Z demands more from products: f.ex. technical qualities need to meet their acquirements. ➔ Complementary assets ◆ Specialized assets increase protection and secure long-term profit, especially when the dominant design has emerged. ◆ The company does not need to own the complementary assets internally, digital and global economy allows the companies to reach them with less resources which helps smaller companies to also emerge and profit (startups eg. Spotify, Uber). ➔ Order of entry under varying economic situations ◆ First-movers in the market usually have advantage over others. When developing new products these advantages need to be capitalized. ◆ Economic conditions change over time in line with the economic and business cycle (expansions and contractions). Timing the marketplace entry with a product/service is therefore crucial from this point of view. 9/15

12. Extending the Henard & Szymanski typology ➔ Optimized marketing task proficiency ◆ Proficiency with which a firm conducts its marketing activities, combined with ◆ reaching and educating the target audiences with market offerings with optimized content (inbound marketing) ➔ Market regulation ◆ Controlled markets where governments controls the forces of supply and demand ◆ A competitive product market environment “allows new firms to challenge incumbents, efficient firms to grow, and inefficient ones to exit, can help boost economic growth and living standards”. (OECD) ➔ Firm’s proficiency in certain market (already in the market vs. new entrants) ◆ Complementary assets (if already in the market) ◆ Tacit knowledge of the market phenomena 10/15

13. Our approach Product Characteristics Firm Strategy Characteristics Firm Processes Characteristics Marketplace Characteristics ➢ Brand ➢ Advantage ➢ Meets customer needs ➢ Technological sophistication ➢ Complementary assets ➢ Order of entry and economic situation ➢ Dedicated HR ➢ Dedicated R&D ➢ Predevelopment proficiency ➢ Optimized marketing task proficiency ➢ Technological proficiency ➢ Launch proficiency ➢ Market regulation ➢ Firm’s proficiency in certain market (already in the market vs. new entrants) ➢ Market potential 11/15

14. Organization to the Henard & Szymanski typology ➔ Internal / External Communication ◆ Internal communication occurs frequently in performing organizational activities; exchanges information of various departments and divisions of the organization. ◆ Two types: vertical and horizontal ◆ External communications’ coverage is much broad with external bodies; the exchange of information is done mainly for maintenance. ◆ No such classification. * ◆ Goal of external communication is ultimately to promote the company and increase revenues. External communications play therefore an important role of overall marketing plan of the company. ➔ Organizational factors ◆ Culture ◆ Climate ◆ Design 12/15

15. Our approach + ➢ Brand ➢ Advantage ➢ Meets customer needs ➢ Technological sophistication ➢ Complementary assets ➢ Order of entry and economic situation ➢ Dedicated HR ➢ Dedicated R&D ➢ Predevelopment proficiency ➢ Optimized marketing task proficiency ➢ Technological proficiency ➢ Launch proficiency ➢ Market regulation ➢ Firm’s proficiency in certain market (already in the market vs. new entrants) ➢ Market potential ➢ Internal / External Communication ➢ Organizational factors Product Characteristics Firm Strategy Characteristics Firm Processes Characteristics Marketplace Characteristics Organization Characteristics 13/15

16. Additions to our approach Capabilities ‘Capabilities,’ which entail more actionable and specific skills, competencies, and routines that firms develop and adjust in line with the dynamics of the situation in the shorter term. In this view of what leads to success, resources are seen as having an indirect impact on performance, in that they are empowered by relevant capabilities. According to the article written by (Teece et al., 1997), dynamic capabilities are seen as firm's ability to "integrate, build and reconfigure both internal and external competences to address rapidly changing environments”. The ability to react adequately, and in a sufficient and timely manner to external challenges is typically a blend of multiple capabilities overlapping with each other. Resources ‘Resources,’ which are the longer-term, background factors—that is, the more tacit, ‘softer,’ and difficult-to-imitate—factors that must be part of the internal environment of the firm if it is to achieve a sustainable competitive advantage. Assumptions: ➔ Firms are heterogeneous with respect to their resources/capabilities/endowments ➔ Resource endowments are ‘sticky’, at least at short-term ➔ Invites consideration of managerial strategies for developing new capabilities (skill acquisition, the management of knowledge and know-how and learning) 14/15

17. Conclusion 15/15 Doesn’t take nonsignificant predictors into account → only dominant predictors Analyzes also organizational factors More suitable nowadays because of the new predictors More balanced regarding the categories

18. Thank you. Questions?

19. References Evanschitzky, H., Eisend, M., Calantone, R. and Jiang, Y. (2012). Success Factors of Product Innovation: An Updated Meta-Analysis. Journal of Product Innovation Management, 29, pp.21-37. Henard, D. and Szymanski, D. (2001). Why Some New Products Are More Successful Than Others. Journal of Marketing Research, 38(3), pp.362-375. Montoya- Weiss, M. & Calantone, R. (1994). Determinants of New Product Performance: A review and Meta-Analysis, Journal of Product Innovation Management, vol. 11, pp. 397-417. OECD.org, Indicators of Product Market Regulation Homepage, [Online], Available: http://www.oecd.org/eco/growth/indicatorsofproductmarketregulationhomepage.htm [25 Jan 2016] Teece et al. (1997), Dynamic Capabilities and Strategic Management, Strategic Management Journal, vol. 18, no. 7, August, pp. 509- 533.