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The impacts of speed-to-market on new product success: the moderating effects of uncertainty

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3 Author(s)
Jiyao Chen ; Wesley J. Howe Sch. of Technol. Manage., Stevens Inst. of Technol., Jing Ma, Ont., Canada ; Reilly, R.R. ; Lynn, G.S.

Time-based strategy is becoming an important weapon to achieve competitive advantage in the current environment of fast-changing technology and customer requirements. Speed-to-market has become the mantra of both researchers and practitioners in new product development (NPD), but there are limited and conflicting findings on the relationship between speed-to-market and product success. A more important question is whether faster is always better. In a study of 692 NPD projects, we examined the relationship between speed-to-market and new product success (NPS) under different conditions of uncertainty. Our results indicate that speed-to-market is generally positively associated with overall NPS, but market uncertainty moderates the direct effect. Speed-to-market is less important to NPS under conditions of low market uncertainty. Our results also suggest that technological uncertainty does not affect the speed-success relationship. The implication is that it is more important to execute a time-based strategy in an unfamiliar, emerging, or fast-changing market than in a familiar, existing, and stable market. The limitations and future research related to these results are discussed.

Published in:

Engineering Management, IEEE Transactions on  (Volume:52 ,  Issue: 2 )