10 2307

The Role of Marketing in Developing Successful New Products in South Korea and Taiwan
Author(s): X. Michael Song, Mitzi M. Montoya-Weiss and Jeffrey B. Schmidt

Source: Journal of International Marketing, Vol. 5, No. 3 (1997), pp. 47-69
Published by: American Marketing Association
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The
Role
Successful
and Taiwan
in Developing
of Marketing
in South
New
Products
new products
is an important
activity for firms in the
Developing
While
marketing
plays an impor
competitive
marketplace.
global,
new
tant role in the process
of developing
few studies
products,
new
in
in East
role
have examined
marketing's
developing
products
on comparing marketing's
Asia. This research focuses
contribution
Korea
ABSTRACT
in South Korean
to the new product
and Tai
process
development
wanese
Korea
and
Taiwan
South
have
firms.
rapidly
expanding
on foreign
In addition,
economies
that depend
heavily
exchange.
these two countries
have successfully
themselves
transformed
from
to producing
labor-intensive
low-value,
mainly
producing
goods
that require significant
high-technology
products
In this article, a model
and proficiency.
of the in
and
resources,
skills, activities,
among marketing
terrelationships
new product
is developed
and tested using data on
performance
new products
372 recently
and 306 re
South Korean
developed
new
Taiwanese
The results generally
products.
cently developed
were found
the model,
support
though some interesting
differences
It was found
that merely
the two countries.
between
possessing
many
high-value,
savvy
marketing
resources
is not a key to new product
of marketing
large quantities
re
success.
the marketing
skills derived from marketing
Rather,
are
sources and the proficiency
in conducting
activities
marketing
new products
in South Ko
developing
important
for successfully
rean and Taiwanese
firms.
The process of developing new products is a critical endeavor

in today's globally competitive
environment
because new
products are vital for long-term survival and viability. How
new products is risky since new product
ever, developing
can
cost
failures
hundreds of millions of dollars. The failure
rate of new products remains high. With few exceptions (e.g.,
Calantone, Schmidt, and Song 1996), past research on the de
terminants of new product success has focused primarily on a
and Calantone [1994] for a
single country (seeMontoya-Weiss
As
noted
and
Kleinschmidt
review).
(1993, p.91),
by Cooper
"although there are hints that product development practices
and success factors transcend national borders, few studies
have
been
conducted
in several
countries
concurrently."
X. Michael
Mitzi M. Montoya-Weiss
Jeffrey B. Schmidt
Submitted:
April,
Revised
In the new product development

(NPD) process, and particu
an
in
international context, marketing plays a central role
larly
in effectively and efficiently translating market information
Song
September
February 26,1997
1996
30,1996
? Journal of International
Marketing
Vol. 5, No. 3, 1997, pp. 47-69
ISSN 1069-031X
47

into product concepts and then positioning the product offer

ings in the target market. No published study has examined
the role of marketing in the NPD process in multiple, newly
countries of East Asia. This study examines
industrialized
in developing
role
successful new products in
marketing's
two of the most successful economies to emerge in the Post
war
Era: South
Korea
and Taiwan.
At a certain level of generality,

hibit
similarities.
South Korea and Taiwan ex
countries
Both
have
their
international
strong
tremen
experienced
dous growth over the past three decades,
due in large part to

In terms
orientation.
of organiza
tional enterprise and political economy, however, these two

countries are strikingly divergent. Accounting
for South
Korea's and Taiwan's individual economic performance has
become a topic of significant research interest and attention
(cf., Field [1995] for a review). This article looks atmarketing
practices relative to NPD at the project level. The objective is
not
to explain
these
two
or to document
mance
and
economic,
social
nations'
to economic
paths
their respective
structures.
perfor
underlying
political,
intent
is to gain
the
Rather,
an understanding of the role of marketing in developing

cessful new products in South Korea and Taiwan.
suc
This study explores the role of marketing in NPD using data

collected on 372 recently developed South Korean new prod
ucts and 306 recently developed Taiwanese new products.
The article is organized as follows. First, motivation
for
NPD
in
Korean
South
and
Taiwanese
is
firms
pre
studying
are
sented. Drawing on past research findings, hypotheses
developed centering on the relationships among the follow
ing factors: marketing
in marketing
activities,
data
collection
nally,
are
findings
are
There
Emergent Global
and
Competitors
Marketers
resources,
marketing
new
product
methods,
results,
and
skills,
proficiency
performance.
and discussion
Fi
of
presented.
several
important
reasons
for focusing
research
ef
forts on South Korea and Taiwan. Both countries have estab

as important players
in the global
lished themselves
are
Korea
Taiwan
South
and
economy.
among the top 13
in the world (Field 1995). In 1988, Tai
ranking economies
wan
was
ranked
economic
market
Euromoney
rea and
first
value
rate
were
ranked
of return
second
(behind Japan), in terms of projected

Annual
growth
rates
in these
on
of macro
investment
by
In the same study, South Ko
financial magazine.
Taiwan
in terms
all countries
among
and
two
and
third
economic
countries
in the world
performance.
since
the mid
1960s have averaged over 8 percent, and well over 10 percent

for peak years (Field 1995). Much of this growth has resulted
from
aggressive
exporting
For
strategies.
example,
exports
from South Korea have grown by an average of 20 percent per

48 X. Michael
Song, Mitzi M. Montoya-Weiss,
and Jeffrey B. Schmidt

year since 1965 (Soo 1987). With a little over 1 percent of the
world's population between them, South Korea and Taiwan
each produce more manufactured
exports than all of Latin
America combined and, with Hong Kong and Singapore, pro
ex
duce over half of all developing
country manufactured
ports [Euromoney 1988).
Perhaps even more impressive, both countries have emerged
as formidable global marketers by having successfully
trans
formed themselves from producing mainly low-value, labor
to producing
intensive
many
goods
high-technology
products that require significant marketing savvy and profi
ciency. The U.S. market has been a primary target formuch of
South
U.S.
Korea's
Taiwan's
and
firms depend heavily
as top export
markets.
exporting
efforts.
Conversely,
on both South Korea and Taiwan

the U.S.
Recently,
named
government
South Korea and Taiwan among 10 key countries that are

emerging markets for U.S. goods. The served markets of the
U.S.,
South
Korea,
and Taiwan
are
increasingly
intertwined.
All of this suggests that South Korean and Taiwanese firms

are highly adept and aggressively competitive in their respec
tive marketing and NPD capabilities. It is expected that these
two countries have important insights to offer in terms of
marketing
practices.
to be
The proposed model and corresponding
hypotheses
tested in this study are presented in Figure 1. In order to ex
in the NPD process, three mar
amine the role of marketing
characteristics
of
the firm were considered: (1)
keting-related
the adequacy of available marketing resources, (2) the ade
in
skills, and (3) proficiency
quacy of available marketing
NPD
activities
the
process.
conducting marketing
during
These three interrelated facets of marketing reflect (1) what
marketing assets the firm owns, (2)what marketing capabili
ties the firm possesses, and (3) how competently the firm ex
ecutes specific marketing tasks in NPD. While a broad array
of factors are associated with new product success (Montoya
Weiss and Calantone 1994), the objective is to narrow the fo
cus and carefully
in
the role of marketing
investigate
new
successful
developing
The proposed model

the partial mediating
on new
product
Proposed Model
and Hypotheses
products.
offers a view of NPD that emphasizes

effect of marketing activity proficiency
performance.
Marketing
resources
and
skills
are modeled
as antecedent drivers of marketing activity pro
as direct determinants of new product per
as
well
ficiency,
formance. The integrative model postulates that new product
performance
sources
is a consequence
deployed
of the marketing
in the conduct
skills
of marketing-related
and
re
NPD
activities.
in Developing
The Role of Marketing
Taiwan
and
Korea
South
Successful
New
Products
in
49

The Role
New Product
Figure
of Marketing
1.
in
Development
f
f
Marketing
Resources
Synergy
^""""^^^m
^*^^?^^
*^^^^
^#S.
He ?
H
1
\MMV
[ NewProduct\
M
f \Vnc- MAct??n8
Performance
M\
Proficiency
Marketing
f
V
^^/^H
^**^*^
Synergy
^0^^00^^^5
1 illustrates
Figure
the four constructs.
ties-based
NPD,
is a consequence
the hypothesized
Consistent
with
among
interrelationships
on capabili
past research
it is hypothesized
that superior
performance
resources
in
and
of relative
the
superiority
in the NPD process (Aaker 1989; Calantone

skills deployed
and di Benedetto 1988; Calantone, Schmidt, and Song 1996;
resources
and
and Parry
1994; Song
1997a,b).
Day
Superior
to en
investments
the pattern
of a firm's past
skills
reflect
a firm's ability
hance
and they represent
competitive
position,
more
or
customers
to produce
better
(or
satisfy
efficiently
co
requires
to cre
skills
activities
execution
of marketing
Proficient
both).
resources
and
ordinated
utilization
of marketing
ate superior
customer
value
(Song
and Parry
Past research on NPD has not considered

tween marketing
are
constructs
resources
1993).
the relationship
and marketing
into
aggregated
skills.
a
These
broad
be
two
con
single
typically
and Klein
(e.g., Cooper
synergy"
"marketing
in
industrialized
schmidt
1987,
However,
1993).
newly
and development
the acquisition
of resources
of
countries,
am
can be
to
NPD.
is
barriers
The
skills
difficulty
significant
man
societies
for cultural
for insular
reasons,
where,
plified
or
not
to
notion
be
amenable
the
of
may
agement
buying
struct
called
outsourcing
agement's
necessary
preference
In order
internally.
fects of marketing
tors
resources
and
marketing
resources
be to develop
may
to carefully
this
investigate
resources
to marketing
activity
are examined.
performance
and
skills
it is expected
that marketing
and
of marketing
execution
velopment
and
Man
skills
link, the ef
as distinct
contribu
and
proficiency
First,
skills.
new
resources
enable
skills
in NPD.
product
the de
Market
ing resources allow firms to build marketing skills much like

a builder gains proficiency by using the tools in his/her tool
box.
50X. Michael
The
storehouse
of marketing
resources
possessed
by

firm can be taken to indicate areas of strategic importance

It ismanagement's
task and responsibility
and concentration.
to determine how best to improve and exploit its resources
(Day 1994; Hunt and Morgan 1995). From this, it is suggested
resource availability and suitability for any
that marketing
choices and
given NPD project constrain a project manager's
or
to
skills.
Stated
apply specific marketing
capacity
develop
formally:
level of marketing resources synergy is associated
positively with the level of marketing skills synergy.
Hi:The
Second,
past
research
has
shown
that firms
must
ad
possess
equate marketing resources and skills in order to successfully

1988;
(Calantone and di Benedetto
develop new products
and
Schmidt,
Calantone,
Song 1996; Cooper and Klein
schmidt 1987; Song and Parry 1997a,b). Drawing on the
firm's existing marketing resources and skills simplifies the
of the necessary
links to the new product.
establishment
team to draw the neces
These links allow the development
to
inferences
and
make
critical marketing deci
sary
insights
sions concerning the new product. Thus, it is suggested that
greater marketing resource and skill synergy with project re
quirements reduces the need for significant reinterpretation
or restructuring of existing marketing knowledge and exper
tise. As a result, the likelihood of proficient execution of mar
keting activity should increase with increasing marketing
resources and skill synergy. Stated formally:
of marketing
positively with the level of proficiency
H2:The
activities.
level of marketing
skills synergy
with
of proficiency
the
level
positively
H3:The
is associated
of marketing
activities.
Third, possessing critical marketing resources and skills does

not guarantee proficiency inmarketing development activities
(Calantone and di Benedetto 1988; Calantone, Schmidt, and
Song 1996). This suggests that marketing activity proficiency
the relationship
partially, rather than completely, meditates
between
marketing
resources
and
skills
and new
product
per
formance. Partial mediation

implies that marketing resource
as
well as indirect effects on new
and skill synergy has direct
product performance. Thus, in addition to the indirect effects
of marketing resources and skills on new product performance
and H3), it is
(i.e., through marketing activity proficiency?H2
resource
and
skill
that
synergy will also
marketing
expected
new
directly impact
product performance.
A firm with well-developed
marketing
skills
has
an
marketing
advantage
resources and proven
when
in Developing
South Korea and Taiwan
it launches
Successful
New
new
Products
in
51

in the marketplace
(Calantone and di Benedetto
products
1988; Song and Parry 1996, 1997a,b). Not only will the firm
be more
of executing
capable
the necessary
resources
activi
marketing
provide
leverage for
and
position
superior competitive
achieving
performance
1988; Song and Parry 1997a,b).
(Day 1994; Day and Wensley
This suggests that firms must have a certain level of pre-ex
isting, relevant marketing expertise if the NPD targets are to
be reached. From this, it is expected that the synergy between
existing marketing resources and skills and the new product
will enhance new product performance. Stated formally:
ties, but
these
and skills

positively with the level of new product performance.
H4:The
H5:The
level of marketing
skills synergy is associated
new product performance.
with
the
of
level
positively
to the omission
cific NPD activities
(Cooper 1986; Sanchez
In particular,
has
extensive
shown
new
that many
fail
product
or poor execution
of spe
past research
Finally,
ures are attributable
has
research
shown
and Elola 1991).

marketing
activ
ity proficiency to be positively associated with new product

success
1988; Calantone,
(Calantone and Di Benedetto
1987;
Schmidt, and Song 1996; Cooper and Kleinschmidt
and
Schmidt
The
1995).
Song
Parry 1996, 1997a,b;
positive
link between marketing activity proficiency and new product
success has been found to be quite stable in a variety of cul
tural contexts. For example, Parry and Song (1994) found
market
research,
market
preliminary
assessment,
and
initial
screening activities to be highly correlated with new product

success in Chinese firms. Parry and Song (1994) suggested
is one of the most important de
that marketing proficiency
terminants of new product success
in Chinese
firms. In
Spain, Sanchez and Elola (1991) found preliminary market
assessment and marketing research activities to be among the
most critical activities for new product success. In Japanese
firms, Song and Parry (1996) found a strong (indirect) rela
and new
activity proficiency
tionship between marketing
and
Song
product performance. Finally, Calantone, Schmidt,
(1996) found a strong association between the proficiency of
activities
marketing
Canada,
China,
the following
and
the U.S.
and
new
in
product
performance
Consistent
with
past research,
is hypothesized:
level of marketing activity proficiency is associated

positively with the level of new product performance.
H6:The
Research
Methods
Overall
Design
52 X. Michael
To test the hypotheses,

South
sign
Korean
consisted
firms
was
project-level
collected.
of a multistage
data from Taiwanese

The
combination
overall
research
of extensive
and
de
case

studies and survey research. The primary objectives of the re

search design were: (1) to develop measures that capture the
constructs
underlying
keting skills synergy, marketing

product
performance
and
and
South
and new
con
Korean
in NPD
compare
mar
synergy,
activity proficiency,
in a Taiwanese
text; and (2) to directly

in Taiwan
resources
of marketing
Korea.
South
Care was taken to avoid applying an American bias to the re

search. Recognizing
that international research requires an
"inside-out" approach in order to develop valid and reliable
measures of appropriate constructs, the North American liter
ature
served
only
as a starting
point
for measurement
develop
Following Douglas and Craig (1983), the focus was on

ascertaining the "comparability" of data collected in different
cultural contexts. To this end, the research was designed with
the intent of establishing equivalent measures for the study of
the role of marketing in Taiwanese and South Korean NPD and
ment.
new
developing
measures
as necessary.
constructs
and/or
To develop valid and reliable measures, Churchill's (1979) par

new measures was adopted. Specifi
adigm for developing
a multi-phase
cally,
iterative
procedure
was
used
to develop
constructs and to
items that reflect the hypothesized
multiple
ensure the validity of the measurement
scales. The existing re
search on NPD and designed scales was reviewed to measure
each construct. These scales were refined through in-depth
case
studies
and
focus
group
interviews
with
Taiwanese
and
South Korean NPD teams, follow-up interviews with individ

ual team members, and consultation with a panel of academic
"experts"
from
and business
engineering
schools.
To lay the groundwork for the research and to develop appro

priate measures, 36 in-depth case studies and focus group in
firms were
terviews with NPD teams at multi-national
conducted. Each NPD team had developed at least four new
products in the five years preceding the interview and was
a new product at the time of the interview. The
developing
average group interview lasted three hours, though some ran
as long as five hours. Multiple
follow-up interviews with in
dividual
team members
also were
Case Studies and Focus

Group Interviews
conducted.
The objectives of the case studies and focus group interviews

were as follows: (1) to select appropriate research methodolo
gies; (2) to develop sampling and survey administration tech
niques and procedures; (3) to establish the content validity of
the concepts and the hypothesized
relationships among the
constructs;
(5) to establish
(4) to develop new measures;
equivalence
of
the
constructs,
concepts,
measures,
and
sam
ples; and (6) to assess the possibility of cultural bias and re

sponse format bias (Douglas and Craig 1983). An interview
in Developing
Successful
New
Products
in
53

instrument
containing
was
questions
and
open-ended
semi-structured
used.
First, team members were asked their opinions regarding im

portant issues in cross-functional
integration during their
firm's NPD process. This part of the interview was designed
to elicit salient constructs and team member definitions
of
constructs.
those
of conceptual
These
discussions
permitted
across
of constructs
equivalence
an assessment
the
coun
two
tries. Conceptual equivalence concerns the degree to which

the concepts or behaviors described in the theoretical model
occur in the Taiwanese
and South Korean NPD processes
and
1997a,
b). The focus was on whether
Parry 1996,
(Song
or not
these
lar manner
were
team members
Second,
are expressed
and behaviors
concepts
across
the two countries.
to discuss
asked
in a simi
two most
the
recent NPD projects. With those experiences/cases

in mind,
team members were shown a theoretical model that linked
to marketing
performance
project
were
ities.
Informants
then asked
resources,
skills,
or not
whether
activ
and
the model
adequately described their experiences and how they would

the model. These discussions
permitted an assess
modify
ment of the functional equivalence of constructs, or the de
gree
to which
the
and
concepts
function from country to country

were
team members
Third,
serve
behaviors
the
same
(Douglas and Craig 1983).

a list of scale
shown
com
items
piled from the literature review and earlier case study inter
views.
teams
The
were
asked
to assess
extent
the
to which
each item measured the construct itwas intended tomeasure

and to suggest possible modifications
and additions. These
discussions
lence
ment
an assessment
permitted
the constructs,
of
scheme
classification
of
or the extent
the category
equiva
the measure
to which
across
be used
could
countries
(Douglas and Craig 1983).

the focus group interviews were
Overall,
reasons.
lence
They
cross-national
the case
study
21 months
Survey
Development
of construct
equiva
and
equivalence),
category
that the final scales were

comparison
and measurement
and was
of NPD
for two
important
appropriate
processes.
of
Completion
processes
development
found to be extremely
for a
took
expensive.
the first round of focus group interviews,

After completing
the recommendations
of Churchill (1979) were followed and
were
subsets that
unique and possessed "different shades of
were identified. A list of constructs
to
informants
meaning"
and
corresponding
measurement
to a panel of academic
54X. Michael
and
functional,
(conceptual,
they indicated
Instrument
facilitated
an assessment
items
was
submitted
"experts" from prominent
then
business

and engineering schools. The panel members were asked to

critically evaluate each item for clarity, specificity, and repre
sentativeness. In addition, suggestions for additional measures
were solicited. After careful evaluation of the results, the final
items were
submitted
to a second
of academicians.
panel
On the basis of the feedback from these two panels of "ex

perts" and a second round of group interviews, a draft ques
tionnaire was prepared that included the items judged to have
and face validity with the constructs. To
high consistency
sure
make
meanings
translation
the
were
not
method
was
accurate
and that the question
a
two
altered,
parallel-translation/double
was
to translate
used
the questionnaire
translation
and South Korean samples (see Douglas

for the Taiwanese
of the resulting question
and Craig 1983). A comparison
naires
revealed
considerable
When discrepancies
by amajority of the
ness of the selected
sulting with selected
in both
Korean
South
across
consistency
translators.
could not be resolved, phrasing favored

translators was selected. The appropriate
translation was further confirmed by con
participants in the case-study interviews
and Taiwanese
firms.
The final stage of measurement

development consisted of two
the
pretests of
resulting questionnaires. The first pretest was
conducted
South Korean and Taiwanese
by interviewing
graduates
from
U.S.
well-regarded
business
as well
schools
as
executives who had been involved in multiple NPD projects.

The second pretest was conducted using all the participants
of the case studies involving the South Korean and Taiwanese
NPD teams described earlier. These respondents were asked
to complete the questionnaire
for a recently developed pro
reflected a few
ject. The final version of the questionnaire
in
modifications
the
pretests.
suggested by participants
Our sampling frame in South Korea and Taiwan consisted of

a random sample of 500 firms listed in the World Business
Directory that met the criteria of developing and commercial
izing at least four new physical (non-service) products since
1991.
each
Twenty
companies
on
of 16 researchers
were
country
team. All
research
in each
the
Sample Design and

Survey Administration
to
assigned
researchers
were instructed to follow the same data collection protocol.

After extensive conversations with the identified managers,
projects were selected from each
recently commercialized
participating firm. The selected projects satisfied the follow
ing criteria: each was introduced after 1991 and was typical
of the NPD projects undertaken by the company during that
time. For each selected project, the project manager was
asked to complete a questionnaire
requesting historical data
of the project. After multiple
letters and phone
follow-up
calls/faxes,
wanese
usable
responses
were
received
on
306
Tai
projects and 372 South Korean projects.
in Developing
Successful
New
Products
in
55

Measures
of interest to this study were measured with

scales. The items for each construct came from a
multiple-item
sources.
of
While many items were developed specifi
variety
items
for
this
comparative
study, other measurement
cally
were derived and adapted from existing validated scales. Re
spondents answered all questions using 0 to 10 Likert-type
scales (anchored by 0, "strongly disagree" and 10, "strongly
agree"). Table 1 reports a detailed description of the measure
ment items used in this study, the reliability of the composite
The constructs
and Analysis
Measures
and
construct,
Please
Measurement
Table
and Construct
Characteristics
1.
actually
item means
the
and
standard
the answer
circle
were
during
that best represents your judgment about each aspect on "how things
the development
of mis project" rather than on "how things ought to be."
I. The following
process. During
steps are frequently
parts of a new product development
the development
activities
under
of this project, how well was each of the following
taken? Please
indicate how well or adequately
each activity
in
your firm undertook
to how you think it should have been done?
this product development
process?relative
=
by circling a number from 0 to 10 on the scale to the right of each statement. Here: 0
10 s done excellently;
done very poorly or mistakenly
omitted altogether;
and numbers
between
0 and
Marketing
10 indicate
Activities
various
degrees
of adequacy.
Proficiency
TAIWAN
(Reliability: Taiwan a=.89, South Korea a=.86)
Mean
S.D.
2.70
5.24
2.39
2.91
4.37
2.56
Appraising competitors and their products?

both existing and potential.
5.16
2.70
5.44
2.40
Selecting customers
market acceptance.
3.13
5.12
2.92
5.36
2.88
Determining
and trends.
marketing
Conducting
a detailed
potential,
customer
process,
Mean
KOREA
S.D.
purchase
characteristics
4.65
study of market
preferences,
etc.
Submitting products
for in-use testing.
3.55
for testing
4.66
to customers
5.08
3.16
Specifying activities and tentative plans

of the product commercialization
phase.
4.74
2.63
5.03
2.40
Executing test marketing programs in line

with the plans for commercialization.
2.93
2.76
3.79
2.95
3.54
2.89
3.54
2.83
4.69
2.57
4.38
2.65
4.91
2.52
Interpreting the findings from in-house and

customer trials, test markets, and trade surveys.
Completing
the final plans formarketing.
Launching and introducing the product

into the marketplace?selling,
promoting
4.68
and distributing.
2.96
56 X. Michael
deviations.

suc
this selected
extent does each statement
listed helow correctly describe
or disagreement
indicate your degree of agreement
by circling
cessful project? Please
a number from Oto 10 on the scale to the right of each statement Here: 0 * strongly dis
?
0 and 10 indicate various degrees of
agree; 10
strongly agree; and numbers between
or disagreement
agreement
II. 7b what
TAIWAN
Synerqy (Reliability:
MAW WN?flESQW?ES
Taiwan
a*.82,
South Korea
Our company's marketing

were more than adequate
Our
sales
company's
more
force
Mean
a^.95)
resources
resources
were
S.D.
4.46
2.81
4.70
2.33
5.28
2.46
4.70
2.32
5.68
2.43
4.49
2.39
4.95
2.48
4.19
2.32
advertising/promotion
more
than
for
adequate
this project.
Skills
Marketing
Mean
were
resources were
Our company's distribution
more than adequate for this project.
Our company's
KOREA
S.D.
research resources
for this project.
for this project.
than adequate
Synergy
TAIWAN
(Reliability:
KOREA
S.D.
Mean
S.D.
4.34
2.79
4.70
2.34
for this project.
4.96
2.70
4.76
2.35
skills were more

Our company's distribution
than adequate for this project.
5.61
2.63
4.46
2.41
skills
Our company's advertising/promotion
were more than adequate for this project.
5.11
2.58
4.69
2.31
Taiwan
a=.81,
South
Korea
Our company's marketing

were more than adequate
Our
company's
than adequate
sales
force
Mean
a=.94)
research skills
for this project.
skills
were
more
can be measured
product performance
what you know today, how successful
criteria.
ing the following
III. New
from
New Product
Taiwan
a=.94,
Table 1 (continued)
Performance
South
Korea
in a number
this selected
(Reliability:
a=.96)
indicate,
of ways. Please
was or has been us
product
TAIWAN
Mean
S.D.
KOREA
Mean
S.D.
Relative to your firm's other new products,

how successful was this product in terms of
=
profits: (0 Far less than our other new
= Far exceeded our other
10
products;
new products.)
3.76
3.19
3.52
3.07
Relative to competing products, how

successful was this product in terms of
=
profits: (0 Far less than our other new
=
products; 10 Far exceeded our other
new products.)
3.91
2.74
3.59
2.73
other new products.)
3.50
2.92
3.20
2.86
in Developing
Successful
to your firm's objectives for this

how
successful was this product
product,
in terms of profits: (0 = Far less than our
other new products; 10 = Far exceeded our
Relative
New
Products
in
57

Marketing Resources Synergy refers to the adequacy of the

marketing assets possessed by a firm. More specifically, how
well did the available marketing resources fit with the project
requirements? The focus here is not on the magnitude of mar
keting resources, but rather on the appropriateness of the re
sources given the project needs. Broad categories of marketing
resources
force,
include
resources
and
distribution,
in marketing
sales
research,
For example,
advertising/promotion.
sales force resources might refer to the number of salespeople

that a company has on its payroll while distribution resources
refer to the number of channels a company has established.
Marketing Skills Synergy refers to the adequacy of the spe
cific marketing capabilities of the firm. Marketing capabili
ties are complex bundles of experience and knowledge
that
enable firms to coordinate activities and make use of their as
sets (Day 1994). Of particular importance is how well a firm's
marketing capabilities and expertise match the requirements
of the new
product.
Proficiency ofMarketing Activities refers to how well market

ing-related activities are conducted during a particular NPD
project. Successful NPD entails the proficient execution of
numerous
activities,
marketing
including:
mar
determining
keting characteristics and trends; conducting detailed market

studies; assessing competitors and their products; executing
in-house
customer
and
and
marketing
introducing
test marketing
programs;
developing
commercialization
and
and
plans;
launching
into the marketplace.
the product
New Product Performance

reflects the level of success
achieved by a new product in the marketplace. While past re
search
mance
suggests
of new
of measures
variety
(cf., Cooper and Kleinschmidt
the profit-based
1993),
in this study.
the focus
product
perfor
1987; Griffin and Page
was
of the new product
performance
success
The new product's
relative
in
terms of profits was assessed, as compared to (1) the firm's

other new products,
and (3) the
(2) competing products,
firm's profit objectives for the new product.
The model
Analysis
and Results
in Figure
(3SLS)
squares
regression
1 was
tested using
analysis,
ing parameters in linear models

cialty of 3SLS is in estimating
several
equations.
When
three-stage
least
for estimat
procedure
by least squares. The spe

in systems of
parameters
in a system
the equations
dependent
such that the dependent
tion
as independent
appear
are
inter
variables from one equa

in other
variables
equations,
then
ordinary least squares (OLS) estimates can be inconsistent.

That is, if the equations are statistically estimated one at a
time,
serious
biases
than one equation

58X. Michael
may
result
from
using
variables
(Calantone and Di Benedetto
in more
1988; Zellner

1962). The 3SLS estimation

approach provides
and efficient parameter estimates of models incor
porating reciprocal causation and interdependent error terms
(Intriligator 1987).
and Theil
consistent
The
set of hypothesized
were
into
translated
sis was
across
the
(1) SKILLS
three
3SLS
equations.
of the relationships
because
employed
variables
of three
in Figure
shown
relationships
a system
analy
the
among
equations.
fcu + ?a (RESOURCE) + et;
+ e2;
+ ?2 (RESOURCE)
+ ?3 (SKILLS*)
(2)ACTIVITIES= ?o(2)
+ ?6
+ ?5 (SKILLS*)
(3) PROFITS = ?^ + ?4 (RESOURCE)
(ACTIVITIES*) + e3,
where,
SKILLS
marketing
=
RESOURCE
marketing
ACTIVITIES = marketing
= estimated
?i
struct
for con
parameter
i,
term for equation
intercept
= disturbance
e?
= indicates
activities proficiency,
coefficient
= estimated
?0(j)
skills synergy,
resources synergy,
term
system
for equation
determined
j,
j,
value.
It is important to note that equations (2) and (3) are estimated

by regressing the dependent variable on the raw data for the
(or exogenous) variables, and on the residuals
independent
for the interdependent
(or endogenous) variables from the rel
evant prior equation (Zellner and Theill 1962). Thus, the val
ues used for the endogenous
variables
(i.e., the jointly
as
variables
that
appear
dependent
dependent variables in
are system
determined
equations)
raw data.
rather than using
earlier
tions
in subsequent
equa
Figure 2 graphically presents the 3SLS estimation results for

the Taiwanese and South Korean samples. All of the paths are
significant at the p-s0.05 level unless otherwise indicated by
n.s. (not significant). The standardized beta coefficient esti
mates and respective significance levels are reported for each
relationship. The system weighted R2 for the re
hypothesized
models
gression
(R2SKorea=.83,
R2TaiWan=-46)
that a very
indicate
large percentage of the variance in the data is explained for

such a parsimonious model.
Interestingly, the R2 also indi
cates
that
the model
explains
ance in the South Korean

This
suggests
Overall,
some
the results
is significant
substantially
more
important
differences
across
indicate each hypothesized
in at least
of the vari
data than in the Taiwanese
one
of the
two

in Developing
data.
countries.
relationship
countries.
Successful
However,
New
Products
in

there are distinct patterns of results for South Korean versus

Taiwanese firms in terms of the interrelated effects of market
of mar
ing resources, marketing skills, and the proficiency
on
activities
keting
new
product
There
performance.
are
across countries:
three basic differences
(1) the mediating
role of marketing activities, (2) the relationship between mar
keting resources and new product performance, and (3) the
mean rating levels for the three dependent
constructs. For
Taiwanese firms, the results indicate thatmarketing activities
re
role between marketing
play a significant mediating
wan =
and skills
and new
(?2
performance
product
resources
do not directly
af
.32, ?g1^011 = .25), and marketing
= -.07,
fect new
Con
n.s.).
(?4%iwan
product
performance
are not a
in South Korean
activities
firms, marketing
versely,
sources
significant mediator
skills
and new
.31, both
negative
-.42). The
of the relationships
between
Korea=
.10, ?3s
a
significant
Korea=
on new product
(?4s
performance
on some possi
that follows
elaborates
(?2SKorea
product
performance
resources
and marketing
have
n.s.),
direct
effect
discussion
ble explanations
resources,
for these differences.
Figure 2.
on New
Effects
Marketing
Product Performance:
Parameter Esti
Standardized
mates
from 3SLS
Regression
Analysis
*
Significant
at the p=.01
level or better;
t-statistics
Finally, Table 1 indicates

mean
60 X. Michael
ratings
on
the marketing
that Taiwanese
resources
are in parentheses.
(Ho: parameters)
project managers'
and
skills
measures

are systematically
higher than their Korean counterparts.
This indicates that Taiwanese project managers perceive a
better match between the resources and skills available and
That is, Taiwanese project man
the project requirements.
agers perceive higher levels of marketing resource and skill
synergy (i.e., marketing resources and skills are highly ade
quate given project requirements). Note that, given the nature
this cannot be taken tomean that Taiwanese
of the measures,
firms
possess
greater
Table
1 also
indicates
resources
that Korean
managers
in conducting
level of proficiency
Taiwanese
The
managers.
skills.
and
activities
marketing
in mean
difference
a greater
perceive
than
activ
marketing
ity proficiency ratings may stem from the fact that the Korean
firms aremuch larger in scale on average than Taiwanese firms
(Field 1995; Hamilton 1991). As a result, the Korean firms may
have more (though not necessarily better matched) slack re
sources and capabilities
readily available for executing the
to Taiwanese
activities.
That
is, relative
marketing
resources
have
slack
Korean
firms may
various
firms,
on conducting
spend more
in-house
customer
and
and
ing marketing
case
studies
detailed market
test marketing
commercialization
studies, executing
and
programs,
that Taiwanese
suggested
to
available
develop
these
plans. Conversely,
on
firms
focus more
capitalizing on their capabilities and skills with

of building quality products at lower costs.
the objective
In spite of these differences, there are also important similari

ties across South Korean and Taiwanese firms. Specifically,
three of the six paths are significant and in the hypothesized
direction for both South Korean and Taiwanese firms: (1) the
effect
resources
of marketing
on marketing
skills
Korea?
g7^ (2) the effect of the proficiency
?^s.
tivities
on new
product
formance
[fa1"
*=
(?e1*
performance
.49), and (3) the effect of marketing

.33, P5S-KowB=
(?j1^?11
of marketing
811=
.38, ?6s
.78,
ac
Korea=
skills on new product per

.54). However,
we
note
that
of the effects for these three paths are stronger

the magnitudes
in South Korean firms than in Taiwanese firms. This system
atic difference, in concert with the difference in the model R2,
suggests that, in South Korean firms, marketing generally is
perceived to have a stronger influence (positive and negative)
on new
product
In sum, the hypotheses

teresting
differences
than
performance
in Taiwanese
firms.
were generally supported and some in
were
uncovered.
In particular,
Hypotheses
1,5, and 6 were
supported by both the Korean and Taiwanese

samples. Hypotheses 2 and 3were supported by the Taiwanese
sample only, and Hypothesis 4 was supported by neither.
The results allow the validity

sessed directly by examining
of the proposed model

the effects of marketing
in Developing
Taiwan
and
Korea
South
Successful
to be as
on new
New
Discussion
Products
in
61

product performance in South Korean and Taiwanese firms.

The findings facilitate understanding
of the relative impor
tance of each predictor variable within each country, which
allows examination of the differential effects that marketing
plays in the NPD process.
Cross-National
Similarities
The similarities found in the results across South Korean and

Taiwanese firms suggest evidence of universal principles of
NPD
successful
that
are
consistent
with
con
research
past
is that there are

ducted in other countries. The implication
critical success factors and interrelationships
that transcend
national borders. According to the results of the study, South
Korean
and Taiwanese
product
managers
perceive
the follow
ing three effects of marketing in the NPD process: (1)market

ing resources are positively associated with marketing skills,
(2) the proficiency of marketing activities is positively associ
ated with new product performance, and (3)marketing skills
are positively
new
with
associated
product
performance.
The results and case studies suggest that both South Korean
and Taiwanese firms work very hard to apply their available
resources to develop expanded marketing
skills
marketing
The
and
capabilities.
resource
keting
once
fore,
mar
perspective
concerning
is long-term
oriented.
That
is,
are used,
are
There
they
depleted.
as a
to develop
is viewed
skills
dominant
utilization
resources
marketing
resources
expending
valuable activity because of the potential long-term payoff in

terms of future NPD marketing capabilities. The case studies
suggest that South Korean and Taiwanese firms alike focus
on developing
resource utilization
and skill development
niche
low-cost,
high-quality,
rather
products
than
on market
ing expenses like advertising or distribution channel design.

Thus, South Korean and Taiwanese firms try to conduct the
"right" marketing activities with the best matched skill set in
order
to directly
success.
product
suggest that the cross-national
These findings
sult from
new
increase
responses
profit-maximizing
similarities
to market
re
opportuni
ties in NPD. This implies that the market demands certain

universal practices in NPD in order to effectively compete in
the global marketplace. At the same time, however, the results
suggest that NPD practices and processes are somewhat idio
syncratic
and
culture
rea and Taiwan,

pervasive
state
specific.
business
policies,
For
example,
is structured
persistent
cultural
in both
South
and moderated
norms,
and
Ko
by
ongo
ing social and political relationships (Field 1995). Thus, while

responses to market opportunities may be
profit-maximizing
the predominant stimuli behind marketing-related
decisions
and
investments,
idiosyncratic
sociocultural
norms
and
val
ues mold specific marketing practices and NPD processes. In

in the
hopes of better understanding
62X. Michael

NPD process, relevant differential sociocultural characteristics

of South Korea and Taiwan are examined and how these dif
ferences may impact firm-level NPD practices is considered.
It is suggested
Taiwanese
that certain cultural attributes of Korean and

are an important
organizations
tion underlying marketing
in NPD. While
practices
and Taiwanese
the Korean
are similar,
cultures
Cross-National
of the explana
part
aspects of
their manifes
tations have led to important differences in managerial prac

tices. The following sections attempt to develop rationale as
to why the paths in the model differ between the two coun
tries. A combination of macro-level
cultural concepts and the
case study results are used to explain the firm-level differ
ences found. Because there is little research on NPD in South
Korean
and Taiwanese
It is proposed
man
resource
the processes
that South Korean

practices
serve
the explanations
firms,
first step in understanding
and Taiwanese
resource
and
as a
only
and differences.
allocation
firms' hu
have
policies
impacted the role of marketing in the NPD process. The find

re
the differential
effects of marketing
ings concerning
sources and marketing
skills may well be consequences
of
in incentive
differences
and
reward
The
systems.
results
and
case studies suggest that a key difference between South Ko

rean and Taiwanese firms is in how the new product manager
views
ing
the available
resource
human
a well-matched
talent?as
asset
in terms of market
pool
or as an inci
(Taiwan)
dental potential
the
(South Korea). In addition,
liability
resource allocation policies of South Korean and Taiwanese
firms appear to have substantial impact on where marketing
resources
are
and
expended
sults and case studies

South
Korean
and
for what
The
purpose.
greater
suggest that a key difference
Taiwanese
firms
concerns
re
between
whether
mar
keting resources are directed more toward building general

or more toward very pro
skills and capabilities
marketing
ject-specific marketing expenses with the intent of achieving
near-term
new
It is suggested
wanese
differences
product
success.
that three important
sociocultural
in human
characteristics
resource
South Korean
underlie
practices
and
the
resource
and Tai
apparent
alloca
tion policies: (1) the generally accepted principle of central

ized authority, (2) patriarchal and conformist values, and (3)
the level of entrepreneurial spirit among employees. First, in
both South Korea and Taiwan, centralized authority was a
fundamental
of rapid eco
(and determinant)
prerequisite
nomic growth in the post-war period (Applebaum and Hen
derson 1992; Field 1995). The important distinction between
the role of central authority in South Korea and Taiwan is that
economic
incentive
and market-orientation
have
been
the dri
ving forces of growth in Taiwan, whereas
stronger control and
in Developing
Successful
New
Products
in
63

Differences
regulation have been the driving forces in South Korea. This

difference has potentially important implications concerning
the provision and allocation of marketing resources for NPD,
which are discussed in the following sections.
In both societies,
cal and
the Confucian
conformist
attributes
heritage reinforces hierarchi
of the top-down
struc
command
ture because it stresses a strong loyalty toward the "group"

in concert
(the family, the company, and/or the workgroup),
with respect for age and hierarchical position. The strength of
the patriarchal values exhibited within the firm contribute to
the level of entrepreneurial spirit evident among new product
team members.
and
managers
tendencies
Strong
con
toward
formity and low levels of entrepreneurial spirit can inhibit ac

ceptance of younger, qualified managers and make it difficult
to resolve certain problems since it inhibits any challenge to
older
It also
managers.
to encourage
tends
a preference
for
egalitarianism at the group level and present barriers for the

development of individual performance reward and incentive
Past
systems.
research
these
and
case
studies
indicate
that
Taiwanese
firms exhibit a higher level of entrepreneurial
to Korean firms. Importantly, the strength of the
relative
spirit
and
patriarchal
entrepreneurial values manifest themselves in
the relationship between individual job performance and eco
nomic reward. In South Korea there is a less direct pay/per
formance link and more reliance on seniority-based
systems
of reward, whereas in Taiwan the entrepreneurial
spirit has
created a stronger and more direct pay/performance
link. This
difference has potentially important implications concerning
how firms motivate and develop human resources and skills
throughout the NPD process.
South Korea. Two interesting results regarding South Korean
firms merit further discussion. First, the proficiency of mar
keting activities does not mediate the relationships between
resources
marketing
and
new
product
because
performance
the available marketing resources may be only fortuitously re

lated to the marketing activities required for successful NPD.
This
be because
may
Korean
in hiring/firing
flexibility
necessary
expertise
managers
project
for conducting
less
perceive
the requisite marketing

the marketing
talent and
activities.
the marketing
appears to be a weaker link between
and
of
the
and
the marketing
knowledge
expertise
employees
tasks the new product manager must accomplish
through
There
them.
As
such,
the available
nificant predictors
resources
marketing
of proficiency
inmarketing
are not
sig
activities.
Second, the proficiency of marketing activities does not medi

ate the relationship between marketing skills and new product
performance.
This
may
be because
always clearly and directly

firms?a
64 X. Michael
patriarchal,
seniority
pecuniary
linked to performance
system
dominates.
are not
rewards
in Korean
This
can
act

as a counterproductive
force against the Korean project man
to
mobilize marketing skills. Thus, since the
ager's attempts
new
Korean
manager
product
not
may
have
author
complete
ity to provide formal incentives to his personnel, he may not

perceive the existing marketing skill base as directly impact
ing the proficient execution of marketing activities.
re
These two findings concerning
sources and marketing skills may well be consequences of the
South Korean firms' incentive systems. Importantly, it has been
suggested that the lack of a neutral, unbiased incentive system
in South Korean firms was one of the fundamental catalysts of
the Korean economic transition (Lee 1995). Briefly, in the post
war
considerable
period,
was
emphasis
on educational
placed
in order to create a pool of educated and readily

development
trainable labor force. Over time, the status of education ele
to the
vated
level
of "screening,"
and
"credentialism,"
"social
(Choo 1990). As a result, it has been suggested that

compensation depends more on formal education and senior
ity in Korean firms (Kon 1987). Reduced importance of job
ization"
can undermine
evaluations
performance
managerial
authority
and limit the Korean manager's ability tomotivate employees.

Thus, if resources are officially defined as "higher educated,
long-tenured
employees,"
to really
these
"resources"
a new
product
be hindrances
The
found between
negative
relationship
and new product
supports
performance
view
manager
may
to successful
NPD.
resources
marketing
this viewpoint.
Consistent with the case studies, the results suggest that suc
cessful Korean firms direct available marketing resources to
ward building skills and capabilities rather than toward more
traditional marketing
expenditures
(advertising, extensive
results
that focusing mar
indicate
The
marketing research).
on
new
resources
improving
keting
directly
product success
has
case
The
consequences.
negative
studies
that
suggest
this
may be due to the centralized control of resources in the typ

ical Korean firm. That is, the Korean project manager does
not perceive himself as being in complete control of market
ing
resource
ceptable
allocation.
managers
perceive
resources
and
ing
Taiwan.
Taiwanese
it would
Moreover,
to presume
such
control.
negative
new
product
NPD
unac
socially
Korean
Thus,
between
relationship
success.
managers'
be
perceptions
project
market
concerning
the provision of marketing resources mirrors the centralized

the results indicate a
authority in that country. Specifically,
between
nonsignificant
marketing resources and
relationship
new
product
Consistent
performance.
with
the case
studies,
this finding suggests that Taiwanese product managers are of

ten not preoccupied with the acquisition or development
of
marketing
resources.
Since
tion is controlled more
resource
centrally
development
and
in the organization,
in Developing
Successful
alloca
product
New
Products
in
65

managers
sion
of
a significant
do not perceive
resources
new
and
product
link between
provi
re
The
performance.
sources themselves are not important; what counts is what

the Taiwanese new product manager is able to do with the re
sources
over
the course
of the project.
As in South Korea, state intervention

mass
were
education
fundamental
nants of rapid economic

in Taiwan
government
and rapid diffusion
prerequisites
the Nationalist
growth. However,
took
a less
of
and determi
authoritarian
position
rela
tive to business,
and instead functioned as an assistant to
business by collaborating with firms to upgrade technical
resources
and management
and Henderson
(Applebaum
1992; Hwang 1991). Thus, relative to Korea, authority struc
tures are less formal in Taiwanese
firms. The case studies
that
suggest
in Taiwanese
top management
firms
assumes
for much of the functional expertise

primary responsibility
development.
Coupled with a pervasive and powerful na
tionalistic spirit, the highly aggressive entrepreneurial drive
of Taiwanese firms has created a strong link between the re
source
As a re
pool and new product
project
requirements.
to Korean managers,
these results
indicate
that
sult, contrary
new
Taiwanese
not
do
managers
product
perceive
marketing
resources
to be negatively
to new
related
product
perfor
mance.
new
Taiwanese
focus
their
Rather,
managers
product
resources
on
available
the
marketing
enhancing
proficiency
of marketing
activities
in the development
process.
The Taiwanese new product manager

is charged with the
resources and skills made
task of utilizing
the marketing
available to him/her to proficiently
execute the necessary
marketing
activities.
Because
resources
the marketing
vided by the central resource management

properly matched to the project requirements,
manager
product
perceives
a significant
pro
authority are
the Taiwanese
link
re
between
source availability and proficiency

in marketing activities.
are
Furthermore, marketing skills
significant determinants of
marketing
activities
because
the Taiwanese
product
manager
is able to motivate
the utilization
of employee capabilities.
Since capitalism in Taiwan appeals strongly to Chinese Con
fucianism's heavy emphasis on individual achievement and
dedication
(Silin 1976), there is a stronger link between per
formance
conformist
and
economic
values
reward.
also motivate
spect new product managers
As
in Korea,
patriarchal
Taiwanese
employees
and
to re
and their authority.
In sum, marketing skills and activities are directly linked to

the proficient execution of marketing activities because the
Taiwanese
ward,
has legitimate
and
manager
and direct
the marketing
motivate,
to re
authority
activities.
However,
social
since the typical Taiwanese firm centrally controls resource

development and allocation, the project manager does not di
rectly control the availability of resources and therefore does
66X. Michael

not perceive a link between marketing resources and perfor

mance. These results suggest that the highly market-directed,
entrepreneurial
match
between
As
a result,
nature
of Taiwanese
resource
marketing
Taiwanese
new
for niche
development
or distribution
vertising
was developed
to new
activities
and
skills,
on
than
product
extensive
ad
channel development.
In this article a model

sources,
rather
on
capitalize
in low-cost, high-quality
markets
good
requirements.
project
managers
product
their competence
building
and
create
firms
re
linking marketing
product
Conclusion
performance.
The model was tested using 372 new products from South
Korean firms and 306 new products from Taiwanese firms. In
in both countries.
general, findings supported the hypotheses
were
across
Three important similarities
found
South Korean
and Taiwanese
firms.
First,
resource
marketing
does
synergy
not directly
increase the level of new product success.
Rather, marketing resource synergy aids in the development
of appropriate marketing skills. Second, marketing skill syn
ergy is important for new product success. Third, proficiency
in marketing
activities
Consequently,
South
new
enhances
Korean
product
Taiwanese
and
performance.
are ad
firms
to develop marketing skills and capabilities in order to

activi
proficiently perform critical marketing development
vised
resources
ties.
possessing
Simply
marketing
success.
the odds of new product
One major difference

in this
uncovered
tivities mediate
on new
between
resources
In Korean
performance.
ac
firms, marketing
product
increase
South Korea and Taiwan was
In Taiwanese
research.
not
will
firms,
and skills
marketing
skills and marketing activities directly impact new product

performance. It is argued that this difference stems from cul
tural
reward,
resources
in human
differences
whether
practices
or not the new product manager

and
motivate,
direct
concerning
to
has the authority
the marketing
activities.
It is
also suggested that the tendency toward centrally controlled

resources in both South Korean and Taiwanese firms would
likely
impact
lated marketing
a manager's
ability
to manipulate
project-re
resources.
to the literature in several ways.

contributes
of
and NPD in South Korea and
Understanding
marketing
Taiwan is increased. Both of these countries have grown at
tremendous rates over the past three decades. Yet few studies
have systematically
examined the successful NPD practices
of these emerging economic juggernauts. In this study, the lit
erature is extended by comparing the role of marketing in the
NPD process in South Korea and Taiwan.
This research
Future
tries
research
as the
region
focus
on NPD
of the world
contains
should
in Developing
in other
Asian
The authors thank the JIM Special

Issue Editor, David K. Tse, and two
anonymous JIM reviewers for their
on earlier
comments
thoughtful
drafts of this article. This article is
based on GLOBALTECH, an inter
national
global
comparative
technology
management
quarter
Successful
New
study
of
and innovation
practices.
Financial
support provided
by Marketing
Science Institute Research Compe
tition Awards,
Eastman Kodak
Hewlett-Packard
Company,
pany, and Arthur D. Little

gratefully acknowledged.
coun
one
about
ACKNOWLEDGMENT
of
Products
in
67

Com
Inc. is
the world's
The Authors
Montoya-Weiss
tant professor
of business
the samples
is assis
at North
Carolina
at
University
Raleigh.
State
is assistant
Jeffrey B. Schmidt
and inter
professor of marketing
national
business
at Kansas
markets.
Furthermore,
were
in nature,
cross-sectional
covering
a broad
industries and prod

range of South Korean and Taiwanese
ucts. While the highly representative nature of the samples
in the findings, there is op
should increase the confidence
more
for
future
research. For example,
portunity
finely grained
given that both South Korea and Taiwan export awide range of
manage
ment
in international
and has generally
this study's model could be expanded to included additional

factors that impact new product performance (e.g., technical
resources, skills, and activities). It is important to note that
Song is associate pro

at Michigan
fessor of marketing
State University.
M.
success
experienced
X. Michael
Mitzi
is rapidly growing,
population,
product types (high/low-value, high/low-technological

sophis
tication), itmay be useful to address the effects of product or
industry type on marketing practices and new product out
comes. There is a need for future research to explore the pos
sibility of additional moderator variables.
State
University.
Aaker,
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The Role of Marketing in Developing Successful New Products in South Korea and Taiwan

Author(s): X. Michael Song, Mitzi M. Montoya-Weiss and Jeffrey B. Schmidt

This content downloaded from 132.170.219.53 on Sat, 25 Jan 2014 07:34:59 AM

The process of developing new products is a critical endeavor

In the new product development

This content downloaded from 132.170.219.53 on Sat, 25 Jan 2014 07:34:59 AM

into product concepts and then positioning the product offer

At a certain level of generality,

South Korea and Taiwan ex

dous growth over the past three decades,

due in large part to

tional enterprise and political economy, however, these two

an understanding of the role of marketing in developing

This study explores the role of marketing in NPD using data

forts on South Korea and Taiwan. Both countries have estab

(behind Japan), in terms of projected

In the same study, South Ko

1960s have averaged over 8 percent, and well over 10 percent

from South Korea have grown by an average of 20 percent per

Song, Mitzi M. Montoya-Weiss,

and Jeffrey B. Schmidt

This content downloaded from 132.170.219.53 on Sat, 25 Jan 2014 07:34:59 AM

firms depend heavily

on both South Korea and Taiwan

South Korea and Taiwan among 10 key countries that are

All of this suggests that South Korean and Taiwanese firms

The proposed model

offers a view of NPD that emphasizes

This content downloaded from 132.170.219.53 on Sat, 25 Jan 2014 07:34:59 AM

in the NPD process (Aaker 1989; Calantone

Past research on NPD has not considered

ing resources allow firms to build marketing skills much like

Song, Mitzi M. Montoya-Weiss,

and Jeffrey B. Schmidt

This content downloaded from 132.170.219.53 on Sat, 25 Jan 2014 07:34:59 AM

firm can be taken to indicate areas of strategic importance

equate marketing resources and skills in order to successfully

Third, possessing critical marketing resources and skills does

formance. Partial mediation

resources and proven

This content downloaded from 132.170.219.53 on Sat, 25 Jan 2014 07:34:59 AM

level of marketing resources synergy is associated

cific NPD activities

(Cooper 1986; Sanchez

and Elola 1991).

ity proficiency to be positively associated with new product

screening activities to be highly correlated with new product

level of marketing activity proficiency is associated

To test the hypotheses,

data from Taiwanese

Song, Mitzi M. Montoya-Weiss,

and Jeffrey B. Schmidt

This content downloaded from 132.170.219.53 on Sat, 25 Jan 2014 07:34:59 AM

studies and survey research. The primary objectives of the re

keting skills synergy, marketing

the role of marketing

text; and (2) to directly

Care was taken to avoid applying an American bias to the re

Following Douglas and Craig (1983), the focus was on

To develop valid and reliable measures, Churchill's (1979) par

South Korean NPD teams, follow-up interviews with individ

To lay the groundwork for the research and to develop appro

Case Studies and Focus