An Empirical Exploration of the Antecedents and Outcomes of NPD Portfolio Success

Title

An Empirical Exploration of the Antecedents and Outcomes of NPD Portfolio Success

 Author

Kester, L.
Hultink, H.J.
Griffin, A.

Faculty

Industrial Design Engineering

 Department

Product Innovatie Management

 Date

2013-06-23

 Abstract

The manuscript first combines theory and previous empirical findings to build a model of new product development portfolio success. Because relationships between product development portfolio decision-making effectiveness, portfolio success and firm-level success have not previously been investigated, we generate propositions that the relationships in general exist (rather than directional hypotheses) and then test those relationships with empirical data. Data from 378 paired dyads in 189 Dutch firms were used to test the initial general model, and then explored further to produce a final structural equation model of these relationships with good fit statistics. Several unexpected findings arise, with important implications both for theory and practice. For example, portfolio balance, one recommended measure of portfolio success (Cooper et al. 2001) has no direct link to market performance, but operates strictly through the other two dimensions of portfolio success, strategic alignment and maximal value. In addition, we find that all three dimensions of portfolio decision-making effectiveness are associated with achieving portfolio success, which in turn influences market performance. No one dimension of decision-making effectiveness or portfolio success is sufficient to achieve market performance.

 To reference this document use:

http://resolver.tudelft.nl/uuid:276695e8-1a3e-4914-a6d9-db8b8937cc3e

 Source

IPDMC 2013: 20th International Product Development Management Conference, Paris, France, 23-25 June 2013

 Part of collection

Institutional Repository

 Document type

conference paper

 Rights

(c) 2013 The Author(s)
Files
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