How the Marketplace Affects Product Development

Infographics

In an article entitled, “NPD Speed vs. Innovativeness: The Contingent Impact of Institutional and Market Environments,” UAB Collat School of Business Professor Shibin (Simon) Sheng collaborated with Kevin Zheng Zhou and Leopold Lessassy to research new product development in an underdeveloped country (China). An important study for students entering the global marketplace after earning their online MBA degrees, the results revealed the importance of a balanced relationship between government institutions, the marketplace and businesses.

Study Outcomes

The study found that:

  • Government regulations concerning ownership of intellectual property and protection against unlawful appropriation enhance new product development in economically advantaged countries.
  • If the government does not enact legislation that protects ownership of intellectual property or to regulate adherence to policy directives, the effect on new product development is negative. Risk to positive firm performance increases.
  • A judicial system’s inability to enforce government regulations has a significant, negative effect on the relationship between technological radicalness and firm performance. Technological industry innovation is then discouraged.

To read details about the study, see more important outcomes and understand the conclusions, view the below infographic from the UAB Collat School of Business online MBA program:

New Product Development

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