The Effects of a Firm’s Product Redesign and New Product Introduction Experience on its Performance
Jae Kyun Yoo · Academy of Management Proceedings · 2024
Research suggests that the type of experience a firm accumulates affects its performance. However, there is little research investigating the effects of specific types of a firm’s product development experience on its performance. This study examines the effects of a firm’s product redesign experience and new product introduction experience on its performance, which is measured by the average owner satisfaction ratings across a firm’s products. The research setting includes major (U.S. domestic and international) automobile firms competing in the U.S. market from 2005 to 2017. The research finds empirically that an increase in a firm’s product redesign experience decreases the average owner satisfaction rating across its fleet of automobiles. Also, an increase in a firm’s new product introduction experience decreases its average owner satisfaction rating across its fleet of automobiles. Finally, an increase in both product redesign and new product introduction experiences increases a firm’s average owner satisfaction rating across its fleet of automobiles. This study contributes to the extant research literature by explaining and predicting the consequences of a firm’s type of product development experience on its performance.