Although design and technological innovations are conceptually distinct and require significantly different resource investments by the firm, little is known about how differing strategies employed in relation to these new products influence changes in market share across national cultures. In this study we provide insights on how technological and design product innovations and product portfolio breadth strategies influence changes in market share within 26 technological and 12 design innovations across 17 firms operating in eight European countries. The results indicate that the positive effect of design innovation on changes in market share strengthen as individualism increases and indulgence increases whereas the positive relationship between technological innovations and market share are weakened as uncertainty avoidance and indulgence increases. We also find that the positive relationship between design product portfolio breadth strategies and changes in market share is strengthened as individualism and indulgence increase, but weakened as uncertainty avoidance increases whereas the positive relationship between technological product portfolio breadth and changes in market share is strengthened as individualism increases.
A Cross-Cultural Investigation of New Product Strategies for Technological and Design Innovations
RUBERA, GAIA
2014
Abstract
Although design and technological innovations are conceptually distinct and require significantly different resource investments by the firm, little is known about how differing strategies employed in relation to these new products influence changes in market share across national cultures. In this study we provide insights on how technological and design product innovations and product portfolio breadth strategies influence changes in market share within 26 technological and 12 design innovations across 17 firms operating in eight European countries. The results indicate that the positive effect of design innovation on changes in market share strengthen as individualism increases and indulgence increases whereas the positive relationship between technological innovations and market share are weakened as uncertainty avoidance and indulgence increases. We also find that the positive relationship between design product portfolio breadth strategies and changes in market share is strengthened as individualism and indulgence increase, but weakened as uncertainty avoidance increases whereas the positive relationship between technological product portfolio breadth and changes in market share is strengthened as individualism increases.
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