The Strategy‐Performance Link in Product Innovation

Abstract The strategy a firm elects for its new product program is a critical element of the firm's corporate strategy. But little research has probed the performance results of firms' new product programs, and the strategy‐performance link. This article reports the results of an empirical study of 122 firms, whose purpose was to identify the levels of new product performance achieved, and the strategies leading to different types of performance. Eight different performance gauges yielded three independent dimensions of new product performance. A total of five different types or clusters of “performers” were identified. And the strategies and characteristics that the “top performers” shared are described.