Home   >   CSC-OpenAccess Library   >    Manuscript Information
Full Text Available

(615.85KB)
This is an Open Access publication published under CSC-OpenAccess Policy.
Linking Design, Marketing, and Innovation: Managing the Connection for Competitive Advantage
Yen Hsu
Pages - 333 - 346     |    Revised - 15-11-2012     |    Published - 31-12-2012
Volume - 3   Issue - 6    |    Publication Date - December 2012  Table of Contents
MORE INFORMATION
KEYWORDS
Marketing strategy, Innovation strategy, Design strategy, Product design
ABSTRACT
Marketing should closely coordinate with product innovation. Not only will an effective connection of the marketing activity and design trigger product innovation in enterprises, it is a key factor to the product success in the market place. In practice, how to process product design so as to reach the goal of marketing during the innovation procedure? In the past, enterprises did have some concrete actions but empirical studies regarding the correlation model between marketing strategy and design strategy or even between marketing strategy and innovation are rarely seen. In the study, the author first synthesized viewpoints from literature on marketing strategy, product innovation strategy, and design strategy. Then managers at marketing divisions and R&D departments of the Taiwanese consumer electronic industry were interviewed. The fitness of theoretical models and the observed data was then verified by Structural Equation Modeling (SEM). From the 265 effective questionnaires, a proper fitness was found for the correlation theoretical model of marketing strategy, product innovation strategy, and design strategy, and the observed data. In enterprises, marketing strategy will influence design strategy, and at the same time, the marketing strategy will also influence design strategy through innovation strategy. Among these three variables, innovation strategy serves as an independent variable and intervene variable to design strategy.
CITED BY (1)  
1 Hsu, Y. (2015). Organizational innovation strategies: the value co-creation strategy (vcs) model. international journal of organizational innovation (online), 8(2), 6.
1 Google Scholar
2 CiteSeerX
3 Scribd
4 SlideShare
5 PdfSR
1 K. Atuahene-Gima, “Market orientation and innovation,” Journal of Business Research,vol.35, no. 2, 1996, pp. 93-103.
2 K. Atuahene-Gima, and H. Li, “When does trust matter? Antecedents and contingent effects of supervisee trust on performance in selling new products in China and the United States,”Journal of Marketing, vol. 66, no. 3, 2002, pp. 61-81.
3 S. Aydin, A. Cetin, and G. Ozer, “The relationship between marketing and product development process and their effects on firm performance,” Academy of Marketing Studies Journal, vol. 11, no. 1, 2007, pp. 53-68.
4 J. Baker, A. Parasuraman, D. Grewal et al., “The influence of multiple store environment cues on perceived merchandise value and patronage intentions,” Journal of Marketing, vol.66, no. 2, 2002, pp. 120-141.
5 M. Baxter, Product design: a practical guide to systematic methods of new product development, London: Chapman & Hall, 1995.
6 P. Bloch, “Product Design and Marketing: Reflections After Fifteen Years,” The Journal of Product Innovation Management, vol. 28, no. 3, 2011, pp. 378-380.
7 J. R. Brown, C. S. Dev, and D.-J. Lee, “Managing marketing channel opportunism: The efficacy of alternative governance mechanisms,” Journal of Marketing, vol. 64, no. 2, 2000,pp. 51-65.
8 M. Bruce, and B. H. Jevnaker, Management of Design Alliances: Sustaining Competitive Advantage, England: John Wiley & Sons, 1998.
9 J. P. Cannon, and C. Homburg, “Buyers-supplier relationships and customer firm costs,”Journal of Marketing, vol. 65, no. 1, 2001, pp. 29-41.
10 M. Carlsson, “Aspects of the Integration of Technical Functions for Efficient Product Development,” R & D Management, vol. 21, no. 1, 1991, pp. 55-66.
11 G. K. Chacko, Technology management: applications to corporate markets and military missions: Praeger, 1988.
12 W. Chang, “A study of design policy and design strategy in product design,” Industrial Design, vol. 27, no. 1, 1998, pp. 2-7.
13 W. Chang, and Y. Hsu, “A comparative study of performance of the design strategic groups and design strategies,” International Journal of Innovation Technology Management, vol. 1,no. 3, 2004, pp. 133-154.
14 D. E. Claudio, and V. Roberto, “Strategies of Innovation and Imitation of Product Languages,” The Journal of Product Innovation Management, vol. 24, no. 6, 2007, pp. 580-599.
15 L. L. Conway, “Forecasting sales for a B2B product category: case of auto component product,” The Journal of Business & Industrial Marketing, vol. 22, no. 4, 2007, pp. 228-235.
16 R. Cooper, and M. Press, The design agenda: a guide to successful design management:Wiley, 1995.
17 D. W. Cravens, W. J. Merrilees, and R. H. Walker, Strategic marketing management for the Pacific region: McGraw-Hill Book, 1999.
18 M. K. David, “In Pursuit of Elegance: Less Is More in the Arts, Product Design, Marketing,”McClatchy - Tribune Business News, 2010.
19 C. Dell Era, and R. Verganti, “Strategies of Innovation and Imitation of Product Languages*,”The Journal of Product Innovation Management, vol. 24, no. 6, 2007, pp. 580-599.
20 K. S. Durward, II, K. L. Jeffrey, and C. W. Allen, “Another look at how Toyota integrates product development,” Harvard Business Review, vol. 76, no. 4, 1998, pp. 36-49.
21 M. J. Dziura, “Innovation: Sources and strategies,” International Journal of Technology Management, vol. 21, no. 5,6, 2001, pp. 612-627.
22 E. Feit, “Essays on integrating product design and marketing research,” 3392616, University of Michigan, United States -- Michigan, 2009.
23 T. Fujimoto, “Product integrity and the role of designer-as-integrator,” Design Management Journal, vol. 2, no. 2, 1991, pp. 29-34 (Spring).
24 C. P. Ge, and B. Wang, “An activity-based modelling approach for assessing the key stakeholders corporation in the eco-conscious design of electronic products,” Journal of Engineering Design, vol. 18, no. 1, 2007, pp. 55-71.
25 D. Gefen, E. Rigdon, and D. Straub, “An Update and Extension to SEM Guidelines for Administrative and Social Science Research,” MIS Quarterly, vol. 35, no. 2, 2011, pp. III.
26 J. T. Gilbert, “Choosing an innovation strategy: Theory and practice,” Business Horizons, vol.37, no. 6, 1994, pp. 16-22.
27 D. H. Gobeli, and D. J. Brown, “Analyzing Product Innovations,” Research Management, vol.30, no. 4, 1987, pp. 25-31.
28 A. Griffin, and J. R. Hauser, “Integrating R&D and marketing: A review and analysis of the literature,” The Journal of Product Innovation Management, vol. 13, no. 3, 1996, pp. 191-215.
29 A. K. Gupta, S. P. Raj, and D. L. Wilemon, “R & D and Marketing Dialogue in High-Tech Firms,” Industrial Marketing Management, vol. 14, no. 4, 1985, pp. 289-300.
30 A. K. Gupta, and D. L. Wilemon, “Accelerating the Development of Technology-Based New Products,” California Management Review, vol. 32, no. 2, 1990, pp. 24-44.
31 J. F. Hair, Multivariate data analysis: Prentice Hall, 1998.
32 J. M. Higgins, “Innovation: The core competence,” Planning Review, vol. 23, no. 6, 1995, pp.32-36.
33 M.-H. Hsieh, K.-H. Tsai, and E. J. Hultink, “The Relationships between Resource Configurations and Launch Strategies in Taiwans IC Design Industry: An Exploratory Study,”The Journal of Product Innovation Management, vol. 23, no. 3, 2006, pp. 259-273.
34 Y. Hsu, “Comparative study of product design strategy and related design issues,” Journal of Engineering Design, vol. 17, no. 4, 2006, pp. 357-370.
35 Y. Hsu, “Exploring design innovation and performance: the roles of issue related to design strategy,” Journal of Engineering Design, vol. 20, no. 6, 2009, pp. 555-569.
36 Y. Hsu, “Design innovation and marketing strategy in successful product competition,” The Journal of Business & Industrial Marketing, vol. 26, no. 4, 2011a, pp. 223-236.
37 Y. Hsu, “Relationships between product development strategies and product design issues,”Journal of Engineering Design, vol. 22, no. 6, 2011b, pp. 407-426.
38 P. Hughes, and J. R. E. Morgan, “A resource-advantage perspective of product-market strategy performance & strategic capital in high technology firms,” Industrial Marketing Management, vol. 36, no. 4, 2007, pp. 503-517.
39 J. M. Jeremy, M. F. Fred, and Y. P. Panos, “Liinking Marketing and Engineering Product Design Decisions via Analytical Target Cascading,” The Journal of Product Innovation Management, vol. 22, no. 1, 2005, pp. 42-62.
40 A. Johne, “Using market vision to steer innovation,” Technovation, vol. 19, no. 4, 1999, pp.203-207.
41 P. Kotler, Marketing management: Analysis, planning, implementation, and control, 9 ed., NJ:Prentice Hall, 1997.
42 P. Kotler, Marketing Management, 11 ed., NJ: Pearson Education Inc., 2003.
43 T. D. Kuczmarski, Managing new products: the power of innovation: Prentice Hall, 1992.
44 T. D. Kuczmarski, Innovation: leadership strategies for the competitive edge: American Marketing Association, 1996.
45 K. W. Lau, C. M. Yam, and P. Y. Tang, “Supply chain product co-development, product modularity and product performance,” Industrial Management + Data Systems, vol. 107, no.7, 2007, pp. 1036-1065.
46 M. Luchs, and K. Swan, “Perspective: The Emergence of Product Design as a Field of Marketing Inquiry,” The Journal of Product Innovation Management, vol. 28, no. 3, 2011, pp.327-345.
47 C. Marxt, and F. Hacklin, “Design, product development, innovation: all the same in the end?A short discussion on terminology,” Journal of Engineering Design, vol. 16, no. 4, 2005, pp.413-421.
48 S. M. Millett, “The Strategic Management of Technological R&D: An Ideal Process for the 1990s,” International Journal of Technology Management, vol. 5, no. 2, 1990, pp. 153-163.
49 B. B. d. Mozota, “The Four Powers of Design: A Value Model in Design Management,”Design Management Review, vol. 17, no. 2, 2006, pp. 44-93.
50 C. H. Noble, and M. P. Mokwa, “Implementing marketing strategies: Developing and testing a managerial theory,” Journal of Marketing, vol. 63, no. 4, 1999, pp. 57-73.
51 W. Olins, Corporate identity: Making business strategy visible through design, Boston, Mass.:Harvard Business School Press 1990.
52 E. M. Olson, “Interdependence, Conflict, and Conflict Resolution: Designs Relationships with R & D, Marketing, and Manufacturing,” Design Management Journal, vol. 5, no. 4, 1994, pp.60-66.
53 E. R. Paul, and S. H. Martin, “Products Liability Law and Its Implications for Engineering Practice,” Engineering Management Journal, vol. 19, no. 2, 2007, pp. 23-30.
54 J.-F. Petiot, and S. Grognet, “Product design: a vectors field-based approach for preference modelling,” Journal of Engineering Design, vol. 17, no. 3, 2006, pp. 217-233.
55 M. B. Pinto, J. K. Pinto, and J. E. Prescott, “Antecedents and consequences of project team cross-functional cooperation,” Management Science, vol. 39, no. 10, 1993, pp. 1281-1297.
56 S. Pugh, Total design: integrated methods for successful product engineering: AddisonWesley Pub. Co., 1991.
57 W. Renee, B. Casper, M. Thomas et al., “Increasing the benefits of product-level benchmarking for strategic eco-efficient decision making,” Benchmarking, vol. 14, no. 6,2007, pp. 711-727.
58 R. Roy, and M. Bruce, Product Design, Innovation and Competition in British Manufacturing:Background, Aims, and Methods.: Milton Keynes, England: Open University., 1984.
59 R. W. Ruekert, and O. C. Walker, Jr., “Interactions Between Marketing and R&D Departments in Implementing Different Business Strategies,” Strategic Management Journal,vol. 8, no. 3, 1987, pp. 233-248.
60 C. Rusinko, “Design-manufacturing integration to improve new product development:The effects of some organization- and group-level practices,” Project Management Journal, vol.28, no. 2, 1997, pp. 37-46.
61 L. B. Sara, and B. Michael, “Innovation as a Learning Process: Embedding Design Thinking,”California Management Review, vol. 50, no. 1, 2007, pp. 25.
62 S. Sari, T. Leena, S. Mikko et al., “Executive views concerning decision support tools,”European Journal of Operational Research, vol. 181, no. 2, 2007, pp. 929-938.
63 R. S. Schuler, and S. E. Jackson, “Linking Competitive Strategies With Human Resource Managem,” The Academy of Management Executive, vol. 1, no. 3, 1987, pp. 207-220.
64 J. D. Sherman, E. S. William, and A. J. Svenn, “Differential effects of the primary forms of cross functional integration on product development cycle time,” The Journal of Product Innovation Management, vol. 17, no. 4, 2000, pp. 257.
65 S. Silbiger, The ten-day MBA: a step-by-step guide to mastering the skills taught in America s top business schools: Collins, 2005.
66 M. Song, and J. Xie, “Does innovativeness moderate the relationship between crossfunctional integration and product performance?,” Journal of International Marketing, vol. 8,no. 4, 2000, pp. 61.
67 X. M. Song, M. M. Montoya-Weiss, and J. B. Schmidt, “Antecedents and consequences of cross-functional cooperation: A comparison of R&D, manufacturing, and marketing perspectives,” The Journal of Product Innovation Management, vol. 14, no. 1, 1997, pp. 35-47.
68 W. E. Souder, and R. K. Moenaert, “Integrating Marketing and R&D Project Personnel within Innovation Projects: An Information Uncertainty Model.,” Journal of Management Studies, vol.29, no. 4, 1992, pp. 485-511.
69 W. E. Souder, and R. K. Moenaert, “Integrating Marketing and R&D Project Personnel Within Innovation Projects: An Information Uncertainty Model,” The Journal of Management Studies,vol. 29, no. 4, 1992, pp. 485-512.
70 W. E. Souder, and X. M. Song, “Contingent product design and marketing strategies influencing new product success and failure in U.S. and Japanese electronics firms,” The Journal of Product Innovation Management, vol. 14, no. 1, 1997, pp. 21-34.
71 A. Subramanian, and S. Nilakanta, “Organizational innovativeness: Exploring the relationship between organizational determinants of innovation, types of innovations, and measures of organizational performance,” Omega, vol. 24, no. 6, 1996, pp. 631-647.
72 T. J. Sung, and M. You, “An Empirical study on design strategy and design performance of information firms in Taiwan,” Journal of Design, vol. 4, no. 1, 1999, pp. 47-59.
73 T.-J. Sung, and P. Gilmour, “An empirical examination of the relationship between design,the NPI process and strategy implementation,” International Journal of Technology Management, vol. 24, no. 5,6, 2002, pp. 542-556.
74 E. R. Thorpe, and R. E. Morgan, “In pursuit of the "ideal approach" to successful marketing strategy implementation,” European Journal of Marketing, vol. 41, no. 5/6, 2007, pp. 659-677.
75 J. Tidd, and J. Bessant, Managing innovation: integrating technological, market and organizational change: Wiley, 2009.
76 Y.-C. Tsai, “Effect of Social Capital and Absorptive Capability on Innovation in Internet Marketing,” International Journal of Management, vol. 23, no. 1, 2006, pp. 157-166.
77 D. Twigg, “Managing product development within a design chain,” International Journal of Operations & Production Management, vol. 18, no. 5, 1998, pp. 508-524.
78 K. T. Ulrich, and S. D. Eppinger, Product design and development: McGraw-Hill/Irwin, 2004.
79 R. W. Veryzer, and B. B. d. Mozota, “The Impact of User-Oriented Design on New Product Development: An Examination of Fundamental Relationships,” The Journal of Product Innovation Management, vol. 22, no. 2, 2005, pp. 128-143.
80 S. C. Wheelwright, and K. B. Clark, Revolutionizing product development: quantum leaps in speed, efficiency, and quality: Free Press, 1992.
81 E. Yoon, and G. L. Lilien, “New Industrial Product Performance: The Effects of Market Characteristics and Strategy,” The Journal of Product Innovation Management, vol. 2, no. 3,1985, pp. 134-144.
82 Y. Zhang, J. Jiao, and Y. Ma, “Market segmentation for product family positioning based on fuzzy clustering,” Journal of Engineering Design, vol. 18, no. 3, 2007, pp. 227-241.
Associate Professor Yen Hsu
Ming Chi University of Technology - Taiwan
erickshi@ms1.hinet.net