Market Orientation, Organizational Learning And New Product Development Performance Relationship Research

In today's business world, one of the most important problems that companies encounter is new product failure. The high product failure rate has been a major concern for practitioners for many years. It was reported that almost half of the new products introduced each year will actually fail. Given the fact that the increasing level of technological advancement, consumer expectations and domestic as well as international competitive pressures continue to shorten the product life cycle for new products, it has become extremely important for companies to understand the critical determinants of new product success and failure and to be able to develop satisfactory, failure- free, and long -living products for markets.The fact that the economic survival of a firm is unarguably dependent upon the successful development and introduction of new Products has motivated many scholars to investigate the potential antecedents of new product performance over the last three decades. In looking at how to achieve new product development performance, many factors have been suggested in the literatures by a number of different scholars. Based on reading a lot of relation literatures, the author suggest a model of these factors that divides them into three categories, which includes market orientation, organizational learning and organizational Innovation. Market orientation is divided into three parts: customer orientation, competitor orientation and inter-functional coordination. Organizational learning is also divided into three parts: commitment to learning, shared vision and open-mindedness. While organizational innovation is divided into two parts: administrative innovation and technical innovation. At the same time, hypothesis for this research is put forward after further consideration of the relationships among these factors.The sample of this study has 126 companies located in Shanghai, Zhejiang and Jiangsu province. The author use SPSS to test hypothesis of this research.The major findings of this study are summarized as following: Firstly, the global model fit is acceptable. This empirical result supports the relationships among the market orientation, organizational learning, organizational innovation and new product development performance. Secondly, market orientation, organizational learning and organizational innovation all have positive influence on new product development performance. Customer orientation, competitor orientation and inter-functional coordination, open-mindedness, administrative innovation and technical innovation all have positive influence on new product developmentperformance. While both shared vision and commitment to learning have no significant influence on new product development performance. Thirdly, both market orientation and organizational learning have positive influence on organizational innovation. Finally, organizational innovation serves as partial mediating variable between market orientation, organizational learning and new product development performance.It is a challenging job to research the influence factors of new product development performance. Although some significant conclusions are drawn from this research, considering the complexity of the paper, the limitations of this study is unavoidable. In the final chapter of the study, limitations of the study are addressed, and future research suggestions are provided.