TY - JOUR
T1 - The effects of new product development proficiency on product advantage and tourism business performance
T2 - Evidence from the Norwegian hotel industry
AU - Sandvik, Izabela L.
AU - Arnett, Dennis B.
AU - Sandvik, Kåre
PY - 2011/11
Y1 - 2011/11
N2 - This survey study examines whether tourism businesses that have developed systematic processes and procedures for new product development (i.e., firms that have new product development [NPD] proficiencies) perform better than those that do not. The study outlines the concept of NPD proficiency, which is conceptualized as a second-order reflective construct, whose first-order facets include opportunity analysis, technical development, product testing, and product commercialization. A model is developed in which product advantage is hypothesized to be a key mediating variable between NPD proficiency and three important indicators of tourism business performance-price premium, capacity utilization, and profitability. The model is tested using data collected from the Norwegian hotel industry. The findings provide support for the view that NPD proficiency influences positively product advantage, which, in turn, both directly and indirectly influences tourism business performance.
AB - This survey study examines whether tourism businesses that have developed systematic processes and procedures for new product development (i.e., firms that have new product development [NPD] proficiencies) perform better than those that do not. The study outlines the concept of NPD proficiency, which is conceptualized as a second-order reflective construct, whose first-order facets include opportunity analysis, technical development, product testing, and product commercialization. A model is developed in which product advantage is hypothesized to be a key mediating variable between NPD proficiency and three important indicators of tourism business performance-price premium, capacity utilization, and profitability. The model is tested using data collected from the Norwegian hotel industry. The findings provide support for the view that NPD proficiency influences positively product advantage, which, in turn, both directly and indirectly influences tourism business performance.
KW - business performance
KW - hotel industry
KW - new product development proficiency
KW - product advantage
UR - http://www.scopus.com/inward/record.url?scp=80455178645&partnerID=8YFLogxK
U2 - 10.1177/0047287510382296
DO - 10.1177/0047287510382296
M3 - Article
AN - SCOPUS:80455178645
SN - 0047-2875
VL - 50
SP - 641
EP - 653
JO - Journal of Travel Research
JF - Journal of Travel Research
IS - 6
ER -