Towards a Theoretical Model Relating Product Development Strategy, Market Adoption and Firm Performance: A Research Agenda

Abstract

There has been a marked increased attention to the concept of product development strategy and firm performance. The focus has been undertaken to respond to the growing interest at both local and international business on the role of product development strategy as the bloodline for business growth. Even though this relationship combined with that of innovation may lead to companies gaining competitive advantage, the previous studies have assumed a simple direct relationship and have failed to integrate other contextual characteristics of the market as espoused by some of the theoretical arguments that underpin the relationship. Sustained firm performance may result when a firm repeatedly introduces product development strategy that service customers ever changing needs. The paper responds to these concerns by proposing a theoretical perspective that considers the direct relationship while including the role of the market characteristics of adoption. The emergent theoretical model is proposed and various constructs and their relationship suggested.