EXAMINING THE RELATIONSHIP BETWEEN DEGREE OF INNOVATION AND NEW PRODUCT SUCCESS

We report an empirical study of over 140 U.S. firms engaged in industrial product innovation. The relationship between the degree of innovation in these firms and the extent of success with new products in these firms is examined in the context of an integrative model of new product success. The model is tested using path analysis. The results indicate that factors in the industry environment, the aggressiveness of the strategic posture taken by the firm, and the organizational structure adopted by the firm are all more important precursors of product success than the degree of innovation. Several implications of the findings for managers of firms engaged in product development are presented.