Product launch, product advantage and market orientation in SMEs

• Published in: Journal of small business and enterprise development Vol. 15; no. 1; pp. 96 - 110
• Main Authors: Ledwith, Ann, O'Dwyer, Michele
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 01.01.2008
• Subjects: Competition; Competitive advantage; Customers; High tech industries; Market orientation; Market shares; Marketing; Organization theory; Organizational performance; Product development; Product introduction; Product launch; Small & medium sized enterprises-SME; Small to mediumsized enterprises; Studies; Success; Product launch; Small to medium-sized enterprises; Competitive advantage; Product development; Market orientation; Organizational performance
• DOI: 10.1108/14626000810850865
• ISSN: 1462-6004

Purpose - The importance of new product development to the survival and success of firms is well supported in the literature; however, few studies have investigated new product development in small to medium-sized enterprises (SMEs). This study aims to examine the impact of product launch, product advantage and market orientation on new product development performance and organisational performance in SMEs.Design methodology approach - This model was tested using data collected from 48 small and large sized firms in Ireland. Findings from 33 small and 15 large firms were compared, and a correlation analysis was used to establish the relationships defined in the model for both small and large firms.Findings - The study identified several significant differences between the impact of product launch, product advantage and market orientation on new product development and organisational performance in small and large firms. It also indicated several areas in which small firms can improve their new product and organisational performance.Research limitations implications - This research builds on prior empirical research that has established a positive link between customer and competitor orientation and performance of small firms.Practical implications - The managerial implications suggest that managers need to place a greater emphasis on product launch proficiency, new product characteristics and market orientation.Originality value - The results show that a market orientation, as well as having a direct impact on organisational performance, also affects new product development activities.