The Role of Market and Entrepreneurship Orientation on the Successof New Product Development
Journal Title: Roshd-e-Fanavari - Year 2017, Vol 13, Issue 52
Abstract
This article examines the relationship between company orientation (entrepreneurial orientation and market orientation), internal control systems and new product development. Different researches results provide valuable insights on the role of the company orientation in New Product development. Entrepreneurial orientation helps the companies to have personal control in order to have great improvement in new product development activities. On the other hand, market orientation puts emphasis more on output control than personal control in new product development. Firm managers that emphasize on output controls are evaluated and rewarded on the basis of objective financial criteria. Personal control on the other hand, focuses on long-term performance rather than short term financial targets. Generally, personal control requires more time and has a higher coordination cost than output control. In recent decades, companies consider new product as a source of competitive advantage and means anticipating competitors. Some marketing researches have found the relationship between market orientation and new product development. The goal of market orientation is to satisfy current market needs, rather than developing new products targeted at emerging new needs. Some researchers criticize market orientation. They suggest that entrepreneurship orientation must be replaced with market orientation. Some researches focus on one of the orientations; on the other hand they ignore the role of internal control systems as a mediating variable. Therefore, we survey this subject completely. This study in terms of methodology is descriptive correlation.
Authors and Affiliations
Zeinab Esfandyari, MohammadJavad Naeiji
Keywords
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- EP ID EP368625
- DOI 10.7508/jstpi.2017.04.001
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