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The Role of Business Expectations for New Product Introductions: A Panel Analysis for the German Food Industry

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  • Hartl, Jochen
  • Herrmann, Roland

Abstract

Theory suggests that business expectations are crucial for investment in research and development (R&D) as well as for process and product innovations. However, there are controversial theoretical predictions about the causal linkage between business expectations and new product introductions. In addition, most empirical studies have so far neglected business expectations as an important determinant of new product introductions due to absence of data. To address this shortcoming, this study investigates whether business expectations do affect new product introductions and whether the net impact is positive or negative. The empirical analysis is based on panel data from 14 branches of the German food industry over six years (1993-1998). Our findings suggest that a strong pressure exists in stagnating or declining food industries to respond to unfavourable expectations through new product introductions. In addition, we identify the influence of market structure and industry-specific variables as significant for new product introductions.

Suggested Citation

  • Hartl, Jochen & Herrmann, Roland, 2006. "The Role of Business Expectations for New Product Introductions: A Panel Analysis for the German Food Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(2), pages 1-11, July.
    • Handle: RePEc:ags:jlofdr:9278
    DOI: 10.22004/ag.econ.9278
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    References listed on IDEAS

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    Cited by:

    1. Biagia De Devitiis & Antonio Lopolito & Ornella Wanda Maietta & Roberta Sisto, 2009. "Adozione di Innovazioni e Variabili Relazionali nelle Imprese del Comparto Biologico," Quaderni DSEMS 18-2009, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.

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