Abstract:

A new product’s meaningfulness and novelty are recognized as two distinct and important dimensions. Thus, researchers started to investigate their impact on new product performance. However, researchers’ reports on the impact of novelty on performance are still mixed, and several issues need to be solved. One of these problems is comparing how strongly each of these dimensions affects the new product performance. The other is to investigate the contingent influence of market turbulence on the relation between the new product’s novelty and its performance. Building on the resource-based view of the firm and signaling theory, this study aims to: 1) examine the impact of a new product’s meaningfulness and novelty on its commercial performance; 2) compare the relative influence of these dimensions on product performance; and 3) examine the moderating effect of market turbulence on the relationship between the novelty and the new product’s commercial performance. Data concerning 374 new products of Polish high- and medium-high-technology companies were examined to achieve these goals using structural equation modeling. First, the results indicated that a new product’s meaningfulness is positively related to its commercial performance, whereas novelty is not. Furthermore, meaningfulness affects performance more strongly than product novelty, and market turbulence moderates the relation between the new product’s novelty and performance. Subsequently, based on these findings, theoretical and managerial implications and directions for future research are provided.