A Longitudinal Study on the Effects of Innovation, Marketing Strategy on Product Design and New Product Development Performance

In enterprises, innovation, marketing, and product design should closely coordinate each
other. Past studies did find some practical actions for product design in enterprises so as to
reach the expected performance in new product development. But literature regarding the
relationships among innovation, marketing, and design strategies for new product
development is limited.
In this study, a theoretical model was built up by the analysis of the literature related to
enterprise innovation, marketing, design strategies, and new product development
performance for the pilot questionnaire survey. 1300 enterprises from the database of the
Taiwan electronic and computer industry were randomly chosen as the subject pool for the
formal survey. In two longitudinal surveys, the managers for new product policy in these
companies were interviewed. In the first survey, situations regarding the marketing,
innovation, and design strategies of the enterprise were investigated, from which 350
effective questionnaires were gathered. After a year of the introduction of new products in
the market place, a second survey was conducted for the collection of new product
development performance, from which 270 enterprises returned and were used for further
analysis.
The structural equation model (SEM) and fitness of the observed data were analyzed. A
proper goodness of fit has been found for the correlation theoretical model and observed
data for innovation, marketing, design strategies and new product development
performance in enterprises. The innovation and marketing strategies in an enterprise will
influence the performance of new product development through design strategy. Among
them, design strategy serves as an independent variable and an intervening variable for
new product development performance. Results from this study were also compared and
contrasted with those from past studies in theoretical and practical design domains in
terms of innovation, marketing, and product design.

DRS 2012 Bangkok