Journal article
Ready, Set, Slow: How Aspiration-Relative Product Quality Impacts the Rate of New Product Introduction
Journal of management, Vol.43(7), pp.2333-2356
09/01/2017
DOI: 10.1177/0149206315569314
Abstract
Performance feedback research addresses how firms respond to performance that diverges from their aspirations. Whereas the majority of research in this vein involves financial performance, we apply this framework to product quality performance, arguing that when performance diverges either below or above aspirations, firms will pursue a slower subsequent product introduction rate, either to identify the cause of the underperformance or to incorporate the successful product characteristics in the case of overperformance. We also investigate whether our predictions hold when two boundary conditions are applied. Since product quality aspirations are derived from the " reputations for quality" of the firm and its peers, we argue that the stability of these reputations will amplify the delaying effects of below-and above-aspiration performance. Consistent with research on firm responses to financial performance, we also predict that greater sales revenues relative to sales aspirations will attenuate the delaying effects of aspiration-relative performance divergence. Our analysis of 1,332 video games released by 48 publishers from 2006 to 2009 is largely consistent with these predictions.
Details
- Title: Subtitle
- Ready, Set, Slow: How Aspiration-Relative Product Quality Impacts the Rate of New Product Introduction
- Creators
- Owen N. Parker - Indiana UniversityRyan Krause - Texas Christian UniversityJeffrey G. Covin - Indiana University
- Resource Type
- Journal article
- Publication Details
- Journal of management, Vol.43(7), pp.2333-2356
- DOI
- 10.1177/0149206315569314
- ISSN
- 0149-2063
- eISSN
- 1557-1211
- Publisher
- Sage
- Number of pages
- 24
- Language
- English
- Date published
- 09/01/2017
- Academic Unit
- Management and Entrepreneurship
- Record Identifier
- 9984936841602771
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