Resolving the Process vs. Product Innovation Dilemma: A Consumer Choice Theoretic Approach

Sriraman Bhoovaraghavan, Ashok Vasudevan and Rajan Chandran
Additional contact information
Sriraman Bhoovaraghavan: Department of Marketing, University of Missouri, St. Louis, Missouri 63121
Ashok Vasudevan: Department of Management & International Business, Temple University, Philadelphia, Pennsylvania 19122
Rajan Chandran: Department of Marketing, Temple University, Philadelphia, Pennsylvania 19122

Management Science, 1996, vol. 42, issue 2, 232-246

Abstract: There has been considerable emphasis on the strategic importance of process and product innovation in the management literature. What actually constitutes process and product innovation, however, is a confused issue in the current literature. Are product and process innovations separate, or are they on a continuum? The importance of addressing this issue is that research over the past few decades has attributed Japan's increasing competitiveness to its propensity to process innovate. This paper uses a consumer-based approach to distinguish between process and product innovation using a model based on choice theory. An empirical illustration of the model is also presented. The model is then used to emphasize the need to pursue an integrated strategy of process and product innovation in response to consumer wants. The model also helps managers decide on the appropriate mix of process innovation relative to product innovation for R&D resource allocation purposes.

Keywords: process-product innovation; choice theory; U.S.--Japanese competitiveness; integrated R&D strategy (search for similar items in EconPapers)
Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.42.2.232 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:42:y:1996:i:2:p:232-246

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().