IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v164y2021ics0040162520312968.html
   My bibliography  Save this article

The role of product development practices on new product performance: Evidence from Nigeria's financial services providers

Author

Listed:
  • Iheanachor, Nkemdilim
  • Umukoro, Immanuel Ovemeso
  • David-West, Olayinka

Abstract

This study investigates the impact of product development practices on the performance of new financial products and services through the analysis of ten in-depth case studies. We argue that weak product development practices negatively affect product performance. This study finds that in Nigeria, new financial product performance is suboptimal because of poor product development practices. This study further shows that when poor execution follows inadequate product development practices, the likelihood of product failure increases, as evidenced by poor product performance and low adoption. The processes adopted in the development of financial services affect the adoption, use, and overall penetration of the product in the target market. Therefore, this study suggests that the management team of various financial service providers invest in developing sound product development practices in the actualization of their goals of increasing the adoption and use of their products.

Suggested Citation

  • Iheanachor, Nkemdilim & Umukoro, Immanuel Ovemeso & David-West, Olayinka, 2021. "The role of product development practices on new product performance: Evidence from Nigeria's financial services providers," Technological Forecasting and Social Change, Elsevier, vol. 164(C).
  • Handle: RePEc:eee:tefoso:v:164:y:2021:i:c:s0040162520312968
    DOI: 10.1016/j.techfore.2020.120470
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162520312968
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.techfore.2020.120470?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    2. Karabag, Solmaz Filiz, 2019. "Factors impacting firm failure and technological development: A study of three emerging-economy firms," Journal of Business Research, Elsevier, vol. 98(C), pages 462-474.
    3. Michael A. Cusumano & Akira Takeishi, 1991. "Supplier relations and management: A survey of Japanese, Japanese‐transplant, and U.S. auto plants," Strategic Management Journal, Wiley Blackwell, vol. 12(8), pages 563-588, November.
    4. Kauffman, Robert J. & Liu, Jun & Ma, Dan, 2015. "Innovations in financial IS and technology ecosystems: High-frequency trading in the equity market," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 339-354.
    5. Mary Anne Madeira, 2016. "New trade, new politics: intra-industry trade and domestic political coalitions," Review of International Political Economy, Taylor & Francis Journals, vol. 23(4), pages 677-711, July.
    6. Najafi-Tavani, Saeed & Sharifi, Hossein & Najafi-Tavani, Zhaleh, 2016. "Market orientation, marketing capability, and new product performance: The moderating role of absorptive capacity," Journal of Business Research, Elsevier, vol. 69(11), pages 5059-5064.
    7. David-West, Olayinka & Iheanachor, Nkemdilim & Kelikume, Ikechukwu, 2018. "A resource-based view of digital financial services (DFS): An exploratory study of Nigerian providers," Journal of Business Research, Elsevier, vol. 88(C), pages 513-526.
    8. Isaac Mbiti & David N. Weil, 2013. "The Home Economics of E-Money: Velocity, Cash Management, and Discount Rates of M-Pesa Users," American Economic Review, American Economic Association, vol. 103(3), pages 369-374, May.
    9. Cheng, Cong & Yang, Monica, 2019. "Creative process engagement and new product performance: The role of new product development speed and leadership encouragement of creativity," Journal of Business Research, Elsevier, vol. 99(C), pages 215-225.
    10. Ragatz, Gary L. & Handfield, Robert B. & Petersen, Kenneth J., 2002. "Benefits associated with supplier integration into new product development under conditions of technology uncertainty," Journal of Business Research, Elsevier, vol. 55(5), pages 389-400, May.
    11. D'Este, Pablo & Amara, Nabil & Olmos-Peñuela, Julia, 2016. "Fostering novelty while reducing failure: Balancing the twin challenges of product innovation," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 280-292.
    12. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    13. Frankort, Hans T.W., 2016. "When does knowledge acquisition in R&D alliances increase new product development? The moderating roles of technological relatedness and product-market competition," Research Policy, Elsevier, vol. 45(1), pages 291-302.
    14. Laukkanen, Tommi, 2016. "Consumer adoption versus rejection decisions in seemingly similar service innovations: The case of the Internet and mobile banking," Journal of Business Research, Elsevier, vol. 69(7), pages 2432-2439.
    15. Kim, Changsu & Kim, Jungkeun & Marshall, Roger & Afzali, Hajir, 2018. "Stakeholder influence, institutional duality, and CSR involvement of MNC subsidiaries," Journal of Business Research, Elsevier, vol. 91(C), pages 40-47.
    16. Arnold Namusonge & Elegwa Mukulu & Samuel Mokaya, 2017. "Relationship Between Strategic Product Development Practices and Financial Performance of Telecommunication Firms in Kenya," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(11), pages 309-326, November.
    17. Om Narasimhan & Surendra Rajiv & Shantanu Dutta, 2006. "Absorptive Capacity in High-Technology Markets: The Competitive Advantage of the Haves," Marketing Science, INFORMS, vol. 25(5), pages 510-524, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abuzaid Ahmad Nasser, 2022. "The Mediating Role of Knowledge Sharing on the Relationship Between Competitive Intelligence and Product Development: Evidence from Jordan," Foundations of Management, Sciendo, vol. 14(1), pages 155-170, January.
    2. Turkcan, Hulya & Imamoglu, Salih Zeki & Ince, Huseyin, 2022. "To be more innovative and more competitive in dynamic environments: The role of additive manufacturing," International Journal of Production Economics, Elsevier, vol. 246(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sun, Wenbin & Price, Joseph & Ding, Yuan, 2019. "The longitudinal effects of internationalization on firm performance: The moderating role of marketing capability," Journal of Business Research, Elsevier, vol. 95(C), pages 326-337.
    2. Barge-Gil, Andres & D'Este, Pablo & Herrera, Liliana, 2018. "Corporate scientists as the triggers of transitions towards firms' exploration research strategies," MPRA Paper 85415, University Library of Munich, Germany.
    3. Mehmet Ali Köseoglu & John A. Parnell & Melissa Yan Yee Yick, 2021. "Identifying influential studies and maturity level in intellectual structure of fields: evidence from strategic management," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(2), pages 1271-1309, February.
    4. Avimanyu Datta, 2011. "Combining Networks, Ambidexterity and Absorptive Capacity to Explain Commercialization of Innovations: A Theoretical Model from Review and Extension," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 2(4), pages 2-25, December.
    5. Miriam Delgado-Verde & Isabel Díez-Vial, 2024. "New product development and supplier involvement: the role of R&D collaboration with supporting organisations," The Journal of Technology Transfer, Springer, vol. 49(2), pages 518-541, April.
    6. Tang, Tanya (Ya) & Fisher, Gregory J. & Qualls, William, 2016. "Interfirm alliance configuration as a strategy to reduce shareholder risks," Journal of Business Research, Elsevier, vol. 69(3), pages 1199-1207.
    7. Pereira, Vijay & Bamel, Umesh, 2021. "Extending the resource and knowledge based view: A critical analysis into its theoretical evolution and future research directions," Journal of Business Research, Elsevier, vol. 132(C), pages 557-570.
    8. Bárbara Larrañeta & José Luis Galán González & Rocio Aguilar, 2017. "Early efforts to develop absorptive capacity and their performance implications: differences among corporate and independent ventures," The Journal of Technology Transfer, Springer, vol. 42(3), pages 485-509, June.
    9. Filippo Carlo Wezel & Gino Cattani & Johannes M. Pennings, 2006. "Competitive Implications of Interfirm Mobility," Organization Science, INFORMS, vol. 17(6), pages 691-709, December.
    10. Davide Consoli & Pier Paolo Patrucco, 2011. "Complexity and the Coordination of Technological Knowledge: The Case of Innovation Platforms," Chapters, in: Handbook on the Economic Complexity of Technological Change, chapter 8 Edward Elgar Publishing.
    11. Arie Y Lewin & Silvia Massini & Carine Peeters, 2020. "Absorptive capacity, socially enabling mechanisms, and the role of learning from trial and error experiments: A tribute to Dan Levinthal’s contribution to international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1568-1579, December.
    12. Kim, Jongwook & Mahoney, Joseph T., 2008. "A Strategic Theory of the Firm as a Nexus of Incomplete Contracts: A Property Rights Approach," Working Papers 08-0108, University of Illinois at Urbana-Champaign, College of Business.
    13. Hongyi Mao & Zongjun Wang & Lin Yi, 2021. "Does Entrepreneurial Orientation Lead to Successful Sustainable Innovation? The Evidence from Chinese Environmentally Friendly Companies," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    14. Pettus, Michael L. & Kor, Yasemin Y. & Mahoney, Joseph T., 2007. "A Theory of Change in Turbulent Environments: The Sequencing of Dynamic Capabilities Following Industry Deregulation," Working Papers 07-0100, University of Illinois at Urbana-Champaign, College of Business.
    15. Mouna Mrad & Slaheddine Hallara, 2014. "The Relationship Between the Board of Directors and the Performance/Value Creation in a Context of Privatization: The Case of French Companies," Public Organization Review, Springer, vol. 14(1), pages 83-108, March.
    16. Avimanyu Datta, 2011. "Review and Extension on Ambidexterity: A Theoretical Model Integrating Networks and Absorptive Capacity," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 2(1), pages 2-22, March.
    17. Zhang-Zhang, YingYing & Rohlfer, Sylvia & Varma, Arup, 2022. "Strategic people management in contemporary highly dynamic VUCA contexts: A knowledge worker perspective," Journal of Business Research, Elsevier, vol. 144(C), pages 587-598.
    18. Iman Seoudi & Matthias Huehn & Bo Carlsson, 2008. "Penrose Revisited: A Re-Appraisal of the Resource Perspective," Working Papers 14, The German University in Cairo, Faculty of Management Technology.
    19. Sheng, Margaret L. & Chien, Iting, 2016. "Rethinking organizational learning orientation on radical and incremental innovation in high-tech firms," Journal of Business Research, Elsevier, vol. 69(6), pages 2302-2308.
    20. Judith Cavazos-Arroyo & Rogelio Puente-Diaz, 2019. "The Influence of Marketing Capability in Mexican Social Enterprises," Sustainability, MDPI, vol. 11(17), pages 1-15, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:164:y:2021:i:c:s0040162520312968. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.