IDEAS home Printed from https://ideas.repec.org/a/wsi/ijimxx/v21y2017i01ns1363919617500062.html
   My bibliography  Save this article

Long-Run Dynamics Between Product Life Cycle Length And Innovation Performance In Manufacturing

Author

Listed:
  • MARKUS PLEWA

    (Friedrich-Alexander University of Erlangen-Nuremberg Nuremberg, Germany)

Abstract

Changes in the duration of product life cycles (PLCs) have been identified as a driving factor for increasing the speed of new product development (NPD). However, the facilitating potential of increasing the speed to market of new products regarding their success has been subject to extensive debate. In this paper, we shed light on the long-run dynamics between PLC and key innovation performance indicators. A large secondary data set allows us to investigate long-run within-company differences. We observe significantly shrinking PLC on the one hand and significantly increasing NPD speed on the other. A change in the length of the PLC is positively linked to changes in time to market (Ttmarket) and time to volume. Also, we confirm a positive empirical relationship between shorter Ttmarket and quicker implementation of targeted quality and productivity. However, we cannot confirm a positive relationship between shorter Ttmarket and shorter time to break-even of investments.

Suggested Citation

  • Markus Plewa, 2017. "Long-Run Dynamics Between Product Life Cycle Length And Innovation Performance In Manufacturing," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-20, January.
    • Handle: RePEc:wsi:ijimxx:v:21:y:2017:i:01:n:s1363919617500062
    DOI: 10.1142/S1363919617500062
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1363919617500062
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1363919617500062?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. Carrillo, Janice E. & Franza, Richard M., 2006. "Investing in product development and production capabilities: The crucial linkage between time-to-market and ramp-up time," European Journal of Operational Research, Elsevier, vol. 171(2), pages 536-556, June.
    2. Lukas, Bryan A. & Menon, Ajay, 2004. "New product quality: intended and unintended consequences of new product development speed," Journal of Business Research, Elsevier, vol. 57(11), pages 1258-1264, November.
    3. Barry L. Bayus, 1998. "An Analysis of Product Lifetimes in a Technologically Dynamic Industry," Management Science, INFORMS, vol. 44(6), pages 763-775, June.
    4. Kathy A. Paulson Gjerde & Susan A. Slotnick & Matthew J. Sobel, 2002. "New Product Innovation with Multiple Features and Technology Constraints," Management Science, INFORMS, vol. 48(10), pages 1268-1284, October.
    5. Anandasivam Gopal & Manu Goyal & Serguei Netessine & Matthew Reindorp, 2013. "The Impact of New Product Introduction on Plant Productivity in the North American Automotive Industry," Management Science, INFORMS, vol. 59(10), pages 2217-2236, October.
    6. Gmelin, Harald & Seuring, Stefan, 2014. "Achieving sustainable new product development by integrating product life-cycle management capabilities," International Journal of Production Economics, Elsevier, vol. 154(C), pages 166-177.
    7. Murray R. Millson & David Wilemon, 2010. "The Impact Of Changing Markets And Competition On The Npd Speed/Market Success Relationship," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 14(05), pages 841-870.
    8. Petri Suomala, 2004. "The Life Cycle Dimension Of New Product Development Performance Measurement," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 8(02), pages 193-221.
    9. Andreas Rauch & Johan Wiklund & G.T. Lumpkin & Michael Frese, 2009. "Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 33(3), pages 761-787, May.
    10. Peres, Renana & Muller, Eitan & Mahajan, Vijay, 2010. "Innovation diffusion and new product growth models: A critical review and research directions," International Journal of Research in Marketing, Elsevier, vol. 27(2), pages 91-106.
    11. Peter N. Golder & Gerard J. Tellis, 2004. "Growing, Growing, Gone: Cascades, Diffusion, and Turning Points in the Product Life Cycle," Marketing Science, INFORMS, vol. 23(2), pages 207-218, December.
    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. Jacqueline Tsz Yin Lo & Calvin Kam, 2021. "Innovation Performance Indicators for Architecture, Engineering and Construction Organization," Sustainability, MDPI, vol. 13(16), pages 1-25, August.

    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. Alina Sorescu & Sorin M. Sorescu & Will J. Armstrong & Bart Devoldere, 2018. "Two Centuries of Innovations and Stock Market Bubbles," Marketing Science, INFORMS, vol. 37(4), pages 507-529, August.
    2. Laciana, Carlos E. & Rovere, Santiago L. & Podestá, Guillermo P., 2013. "Exploring associations between micro-level models of innovation diffusion and emerging macro-level adoption patterns," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(8), pages 1873-1884.
    3. Tyson R. Browning & Eric C. Honour, 2008. "Measuring the life‐cycle value of enduring systems," Systems Engineering, John Wiley & Sons, vol. 11(3), pages 187-202, September.
    4. Rui Leite & Aurora Teixeira, 2012. "Innovation diffusion with heterogeneous networked agents: a computational model," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 7(2), pages 125-144, October.
    5. Katharina Elisabeth Fischer & Tom Stargardt, 2016. "The diffusion of generics after patent expiry in Germany," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(8), pages 1027-1040, November.
    6. Scott A. Shane & Karl T. Ulrich, 2004. "50th Anniversary Article: Technological Innovation, Product Development, and Entrepreneurship in Management Science," Management Science, INFORMS, vol. 50(2), pages 133-144, February.
    7. Marchand, André, 2016. "The power of an installed base to combat lifecycle decline: The case of video games," International Journal of Research in Marketing, Elsevier, vol. 33(1), pages 140-154.
    8. Goodwin, Paul & Meeran, Sheik & Dyussekeneva, Karima, 2014. "The challenges of pre-launch forecasting of adoption time series for new durable products," International Journal of Forecasting, Elsevier, vol. 30(4), pages 1082-1097.
    9. Rycroft, Robert W., 2006. "Time and technological innovation: Implications for public policy," Technology in Society, Elsevier, vol. 28(3), pages 281-301.
    10. Elalem, Yara Kayyali & Maier, Sebastian & Seifert, Ralf W., 2023. "A machine learning-based framework for forecasting sales of new products with short life cycles using deep neural networks," International Journal of Forecasting, Elsevier, vol. 39(4), pages 1874-1894.
    11. Chandrasekaran, Deepa & Arts, Joep W.C. & Tellis, Gerard J. & Frambach, Ruud T., 2013. "Pricing in the international takeoff of new products," International Journal of Research in Marketing, Elsevier, vol. 30(3), pages 249-264.
    12. Riikonen, Antti & Smura, Timo & Kivi, Antero & Töyli, Juuso, 2013. "Diffusion of mobile handset features: Analysis of turning points and stages," Telecommunications Policy, Elsevier, vol. 37(6), pages 563-572.
    13. M. I. M. Wahab & C. -G. Lee & P. Sarkar, 2023. "A real options approach to value manufacturing flexibilities with regime-switching product demand," Flexible Services and Manufacturing Journal, Springer, vol. 35(3), pages 864-895, September.
    14. S. Arunachalam & S. Cem Bahadir & Sundar G. Bharadwaj & Rodrigo Guesalaga, 2020. "New product introductions for low-income consumers in emerging markets," Journal of the Academy of Marketing Science, Springer, vol. 48(5), pages 914-940, September.
    15. Chen, Yuwen & Carrillo, Janice E., 2011. "Single firm product diffusion model for single-function and fusion products," European Journal of Operational Research, Elsevier, vol. 214(2), pages 232-245, October.
    16. Lim, Hyungsoo & Jun, Duk Bin & Hamoudia, Mohsen, 2019. "A choice-based diffusion model for multi-generation and multi-country data," Technological Forecasting and Social Change, Elsevier, vol. 147(C), pages 163-173.
    17. S. Arunachalam & Sridhar N. Ramaswami & Pol Herrmann & Doug Walker, 2018. "Innovation pathway to profitability: the role of entrepreneurial orientation and marketing capabilities," Journal of the Academy of Marketing Science, Springer, vol. 46(4), pages 744-766, July.
    18. Insoo Cho & Peter F. Orazem, 2021. "How endogenous risk preferences and sample selection affect analysis of firm survival," Small Business Economics, Springer, vol. 56(4), pages 1309-1332, April.
    19. Gundula Glowka & Andreas Kallmünzer & Anita Zehrer, 2021. "Enterprise risk management in small and medium family enterprises: the role of family involvement and CEO tenure," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1213-1231, September.
    20. Jonathan H. Reed, 2022. "Operational and strategic change during temporary turbulence: evidence from the COVID-19 pandemic," Operations Management Research, Springer, vol. 15(1), pages 589-608, June.

    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:wsi:ijimxx:v:21:y:2017:i:01:n:s1363919617500062. 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijim/ijim.shtml .

    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.