EXAMINING THE RELATIONSHIP BETWEEN DEGREE OF INNOVATION AND NEW PRODUCT SUCCESS

We report an empirical study of over 140 U.S. firms engaged in industr ial product innovation. The relationship between the degree of innovat ion in these firms and the extent of success with new products in thes e firms is examined in the context of an integrative model of new prod uct success. The model is tested using path analysis. The results indi cate that factors in the industry environment, the aggressiveness of t he strategic posture taken by the firm, and the organizational structu re adopted by the firm are all more important precursors of product su ccess than the degree of innovation. Several implications of the findi ngs for managers of firms engaged in product development are presented .