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The future of currrent business : a research on the effect of temporal profile synchronizatioa on product development in business-to-business relations for different industrial market segments of electronic bicycles

Veerdonk, P.A.J. van de (2011) The future of currrent business : a research on the effect of temporal profile synchronizatioa on product development in business-to-business relations for different industrial market segments of electronic bicycles.

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Abstract:What is the relation between temporality and new product development? This important question has not been answered to date because the concept of temporality has been defined to broadly. To include the concept of temporality in organizational research, temporal profiles of network actors should be addressed. Only a few studies to date have emphasized the importance of temporal profiles in business networks. To date, no research has been conducted on the relation between temporal profiles and new product development. The present study first emphasizes the importance of a contingency approach in general. Subsequently it argues that effective management of B2B new product development is a means of ensuring business. Based on these two statements, it is argued that management of new product development should be contingent with customers‟ wishes, which are defined by market segmentation. After that, the process of achieving exactly that contingency is called synchronization. That synchronization is regarded from a temporal approach, based on three temporal constructs, which are assumed to determine temporal profile of market actors: timing, duration, and stability. In other words; the study emphasizes the importance of temporal synchronization of business-to-business new product development with wishes of client companies in different market segments. Data collection takes place from the Dutch industrial design office INDES and is focused on E-bike active assistance devices (AADs). AADs are supportive modules consisting of an electromotor, a battery, motion sensors, a control panel and wiring. Data is gathered by three different methods; interviews with current INDES client companies, participant observations at INDES itself, and a questionnaire that is sent to 181 E-bike producing companies in 15 countries. 54 Companies from seven different countries responded, providing a forthwith 30% response rate. Response rate in the Netherlands, the research‟s native country, is found to be more than 60%. All data regards the three temporal profile constructs; timing, duration, and stability. The three constructs have been developed for this research specific. However, they can be used for future research as well. With help of the gathered data, this study develops a method of contingent, proactive market orientation. The study findings imply that (1) client companies can meaningfully be divided into market segments based on their temporal profile - formed by timing, duration, and stability - and (2) new product development decisions can be based upon temporal profiles. The segmentation base that is derived from the findings is product use. The two resulting target segments are: ordinary users and users with a physical disability. Findings also show that product management should be synchronized with a temporal profile that is determined by the characteristics: (1) end-user influence on timing, (2) number of dealer-ordered modifications, (3) economical timing, (4) capacity timing, (5) supplier relationship, and (6) influence of external factors. These implications make logical sense. For if in new product development a firm grounds decisions merely on market segmentation bases as product use or customer size the changes of creating true value for customer are low. Such a business is vulnerable not only for guessing the base of product value for the customer but more so to competitors that do adjust their product to the customer‟s temporal profile. Synchronization of new product development and customers‟ temporal profiles is intuitively obvious though never examined. This study empirically supports its significance. Moreover, the study findings provide INDES with practical recommendations. Recommendations include the advice for product development synchronization with two specific market segments (normal users and users with a physical disability), the advice for innovation focus on E-bike AAD battery and controller, and the advice for a more assertive contract negotiation with future client companies.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration BSc (56834)
Link to this item:http://purl.utwente.nl/essays/62947
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