Strategic positioning, timing of entry, and new product performance in business-to-business markets: do market-oriented firms make better decisions?

Purpose: The mechanism by which market orientation contributes to positional strength of a new product, appropriate timing of entry to the market, and new product performance is examined in a business-to-business (B-to-B) context. Methodology/Approach: We examine the role of new product positional strength and the role of timing of entry in the market orientation—new product performance relationship using 178 firms operating in the B-to-B market. Findings: The results show that establishing a new product’s positional strength is a key step in the success of the new product. Market orientation does not directly influence new product performance. Instead, it shapes a new product’s positional strength, which, in turn, positively influences new product performance in the B-to-B market. Timing of entry decision for the new product, shown to be an outcome of its positional strength, is not a determinant of new product performance. Research implications: We depict the tactical process in new product success and highlight the role of new product positional strength in linking market orientation and new product performance. Practical implications: The findings reveal that market-oriented firms achieve superior new product performance through well-defined positioning strategy for a new product, not rapidity of action. Originality/Value/Contribution: This study explains how market orientation influences new product performance in the B-to-B market, taking into consideration new product positional strength and timing of entry