The impact of market characteristics and innovation speed on perceptions of positional advantage and new product performance

Innovation speed has been long considered to be a primary factor for establishing a competitive edge. However, there has been little empirical work with regard to the benefits of innovation speed and their contextual dependence. This study investigates the impact of innovation speed on managerial perceptions of positional advantage and new product performance. It also examines the moderating effect of marketplace characteristics. Based on a survey of 178 manufacturing firms, the results indicate that innovation speed plays an important role directly and indirectly, through the creation of positions of advantage, in enhancing new product performance. The results also show that the effects of innovation speed on positional advantage and new product performance are contingent on the levels of market uncertainty, market potential, and competition.