Complex Modeling of Factors Influencing Market Success of New Product and Service Developments

Identification of drivers of new product success and analysis of their relations are very critical for companies to be successful in their core markets. It is agreed in the literature that firm strategy (marketing synergy, technology synergy), process characteristics and product characteristics all influence market success. Our main objective was to develop an innovation model integrating the structural and process elements influencing market success of innovations. We empirically tested our model by structural equation modeling and found that market success of innovations was highly determined by product characteristics, but it was also significantly, but to a lesser extent, influenced by process characteristics and the firm strategy. We also found that market success of innovations intensified the reactions of competitors.