Chiao, Y. C., Huang, C. J., and Huang, Y. P. 2016. How Competitors’ Actions Affect the Relationship between New Product Launch Speed and Firm Performance in Multimarket Contact?. NTU Management Review, 27 (1): 63-98. https://doi.org/10.6226/NTUMR.2016.DEC.C102-022
Yu-Ching Chiao, Professor, Department of Business Administration, National Chung Hsing University
Chun-Ju Huang, Ph.D., Department of Business Administration, National Chung Hsing University
Yu-Pei Huang, Master, Department of Business Administration, National Chung Hsing University
Abstract
This study aims to combine the concept of multimarket contact with competitive dynamics and proposes the conception of a new product in the marketing domain. It further aims to examine the implication behind the competitive actions of firms. The top four Taiwanese chain convenience stores, namely, 7-ELEVEN, Family Mart, Hi-Life, and OK, are used as the samples, and the news related to competitive interactions among these companies in 2005 to 2012 are collected. News articles from the past eight years are further separated into 96 months. Data are obtained from the Knowledge Management Winner (KMW) database. Moreover, this study employs structured content analysis to construct the competitive action database of the top four chain convenience stores relative to their competitive actions. Finally, 1,666 news articles are retrieved. Empirical results indicate that (1) a negative relationship exists between the degree of multimarket contact and new product launch speed, (2) a positive relationship exists between new product launch speed and firm performance, and (3) the number of competitor actions can strengthen the negative relationship between the degree of multimarket contact and new product launch speed.
Keywords
new product launch speedcompetitive dynamicsmultimarket contact