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Customization of Product Technology and International New Product Success: The Mediating Effects of Timeliness in Product Development and Rollout

Chryssochoidis, George, Wong, Veronica (2000) Customization of Product Technology and International New Product Success: The Mediating Effects of Timeliness in Product Development and Rollout. Journal of Product Innovation Management, 17 (4). pp. 268-285. ISSN 0737-6782. (doi:10.1111/1540-5885.1740268) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL
http://dx.doi.org/10.1111/1540-5885.1740268

Abstract

Offering a standardized product for different country markets may enable companies to accomplish fast product development and multicountry rollout, whereas also enjoying substantial cost benefits. However, not all manufacturers serving multicountry markets can adopt a standardized product strategy. Where technological requirements, standards, and approval procedures vary substantially across countries, manufacturers invariably must adapt the product's technology to fit individual country requirements. Extensive customization may lead to longer new product development and rollout times and increase the likelihood of delays in the entire project, hence adversely affecting overall new product outcome. This study examines the relationships between product technology customization, the timeliness in completion of both the new product development effort and international market launches, and new product success. The study that reports on new product launches across European markets, is based on personal interviews with senior managers in 30 multinational companies. The authors show that timeliness in new product development and timeliness in rolling out the new product into different country markets mediate the link between product technology customization and overall new product success. Customization of product technology increases the likelihood of delays in the completion of new product development projects and multicountry rollout. Additionally, the timeliness in new product development mediates the relationship between product technology customization and timeliness in international new product rollout. This means that if the NPD project runs behind schedule, a fault-free multicountry rollout program becomes increasingly unlikely, as problems encountered during product development spillover into the rollout program. The results imply that international product managers must assign greater priority to assessing the relative advantages of customizing new product technology and to consider the timing implications for both the NPD effort and subsequent rollout. Managers must set realistic schedules and allocate sufficient resources to ensure both tasks can be accomplished within planned time scales. Finally, managers should not underestimate the complexities and time involved in customizing new product technologies, including the completion of disparate country technical approval procedures.

Item Type: Article
DOI/Identification number: 10.1111/1540-5885.1740268
Uncontrolled keywords: International trade, Project management, Resource allocation, Strategic planning, Usability engineering, Product technology customization, Rollout timeliness, Product development
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculties > Social Sciences > Kent Business School > Marketing
Depositing User: Cathy Norman
Date Deposited: 08 Jan 2013 10:56 UTC
Last Modified: 29 May 2019 09:54 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/32836 (The current URI for this page, for reference purposes)
Chryssochoidis, George: https://orcid.org/0000-0001-9868-7119
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