New Product Development Structures and Time-to-Market

Srikant Datar, Clark Jordan, Sunder Kekre, Surendra Rajiv and Kannan Srinivasan
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Srikant Datar: Graduate School of Business, Harvard University, Boston, Massachusetts 02163
Clark Jordan: Graduate School of Industrial Administration, Carnegie Mellon University, Schenley Park, Pittsburgh, Pennsylvania 15213-3890
Sunder Kekre: Graduate School of Industrial Administration, Carnegie Mellon University, Schenley Park, Pittsburgh, Pennsylvania 15213-3890
Surendra Rajiv: Graduate School of Business, University of Chicago, 1101 East 58th Street, Chicago, Illinois 60637-1561
Kannan Srinivasan: Graduate School of Industrial Administration, Carnegie Mellon University, Schenley Park, Pittsburgh, Pennsylvania 15213-3890

Management Science, 1997, vol. 43, issue 4, 452-464

Abstract: In fast-cycle, high technology industries, the speed and rate at which companies can introduce products into the market are critical for sustaining competitive advantage and market share. The authors analyze new product development by three international manufacturers that dominate a segment of the electronic component industry. The objective is to examine the impact of two distinct product development strategies and structures on time-to-market. The analysis of more than 200 new product developments provides important findings. A concentrated new product development structure, in contrast to a distributed structure, affords rapid prototyping. However, volume production is reached faster in the distributed structure. Also, devoting more time to prototyping hastens volume production.

Keywords: time-to-market; new product development; product prototyping; hazard function models (search for similar items in EconPapers)
Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:43:y:1997:i:4:p:452-464

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