The interplay between strategic design and market orientations in achieving new product advantage

Purpose Although design-related issues have attracted increasing attention in the marketing literature, a deeper understanding of strategic design orientation and its interplay with market orientation in generating new product advantage remains lacking. Design/methodology/approach To test the proposed model, the authors collected data through a cross-sectional survey of new product development (NPD) project teams operating in manufacturing firms in the USA, South Korea and Japan, known for their leadership in product development. The authors use hierarchical linear modeling and Hayes’ PROCESS Model 4 to empirically test the model with a sample of 402 usable sets. Findings The authors demonstrate that market orientation and strategic design orientation interact positively to enhance new product advantage, extending prior research on the complementarities of strategic orientations; although strategic design orientation shows no direct effect, its combination with market orientation produces a super-additive impact, underscoring the importance of integrating these two perspectives. The findings reveal different pathways through which the two orientations operate; they are complementary not only in perspective, but also in their mechanisms of influence: market orientation has a positive effect on new product advantage through both direct and indirect effects through functional and emotional value, while strategic design orientation has no direct effect on new product advantage but has a significant indirect effect on new product advantage through the functional value as well as a marginally significant indirect effect through emotional value. Research limitations/implications The data analyzed are cross-sectional and longitudinal data may be needed to fully assess the proposed relationships across the product development process and product lifecycle. Other variables worth investigating include alternative strategic orientations, as well as alternative mediating variables. Practical implications For scholars and practitioners, the findings highlight the need to better balance and explore the complex relationship between market and strategic design orientations in influencing new product advantage through functional and emotional values in new product management. Originality/value Therefore, this study aims to disentangle the relationship between market and strategic design orientations, as well as their interaction and influence on key performance outcomes. In addition, the authors introduce the important mediating variables of functional value and emotional value to examine the indirect effects of market and strategic design orientations on new product advantage.