Determinants of New Product Outcome in a Developing Country: A longitudinal analysis

Abstract While new product success and failure in technologically advanced countries has been widely studied, little work has been done on examining this issue in developing countries. In this paper, the introduction of 279 new products in a developing country, Korea, is examined to identify the ingredients of new product success. A categorization scheme is developed to distinguish the industrial market environments of developing countries according to their development stages, and proves useful in identifying significant determinants of new product outcome for the two different situations in the industrial market. The two industrial market situations are LDC stage and NIC stage, which represent the early and the later stage of industrialization and economic development in developing countries respectively. In the LDC stage, proficiency of technical effort and indigenous capabilities to make technologically superior products are found to be important factors in determining new product outcome, whereas the critical role of market orientation together with technological capability appears important in deciding new product outcome in the NIC stage.

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