Publication
Title
Investor reactions to new product development failures : the moderating role of product development stage
Author
Abstract
The authors develop a model of investor reactions to new product development (NPD) failures in high technology firms. They propose that a firms financial and managerial capabilities, and its strategic focus on R&D, influence investors perceptions of the firms market value after NPD failure and that these effects are contingent on the development stage of the failed product. Using data on 148 NPD failures of publicly traded biopharmaceutical firms and an event study methodology the authors find support for their hypotheses. They show that the relationships between a firms (a) financial capabilities, (b) managerial capabilities, and (c) strategic focus on R&D, respectively, and the decline of firm market value after NPD failure are more negative for products that fail in late development stages than for products that fail in early development stages. The authors results highlight the importance of a conjoint consideration of product-level and organizational-level effects in explaining investor reactions to NPD outcomes.
Language
English
Source (journal)
Journal of management / Southern Management Association [Lubbock, Tex.] - Lubbock, Tex., 1975, currens
Publication
Lubbock, Tex. : 2013
ISSN
0149-2063 [print]
1557-1211 [online]
Volume/pages
39:4(2013), p. 985-1015
ISI
000318176900006
Full text (Publisher's DOI)
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
VABB-SHW
Web of Science
Record
Identification
Creation 06.10.2011
Last edited 04.07.2017
To cite this reference