Concurrent commercialization and new-product adoption for construction products

Purpose - This paper aims to report on data from case studies of development process, and a survey of use patterns over ten years, for 13 highly innovative products. While the paper does not claim concurrent commercialization (CC) as a universal solution, it aims to highlight significant correlates between management best practice, concurrent commercialization and builder use rates for these 13 highly innovative products in the USA residential construction industry. Design/methodology/approach - To study the effect of CC on new-product adoption rates by installers, the authors assembled data from the National Association of Home Builders' (NAHB) Builders' Practices Survey (BPS) for the years 1996 through 2005. The data collection was executed in three phases. Best practices were collected from literature. Explanatory variables regarding best practice and presence of CC were collected and measured through case studies. The measure of market penetration, based on the concept of innovativeness, was obtained from the BPS survey data. Findings - Data analysis of 13 highly innovative products indicates that CC is consistent with accepted best practice in product development. These products suggest that some organizations might contain 100 percent CC with varying degrees of best practice management ideals, and also include equilibrium. Research limitations/implications - The extent to which products, with varying CC percentage, are affected by individual steps within CC is a direction for future research. The authors also did not have the ability to look at the entry year for other products strongly rooted in CC; there could be other explanations for a product entering the market strongly. Practical implications - CC is essentially directed at designing a commercialization process, as opposed to designing a product, which benefits the product development from exposure to all members along the construction supply chain. CC, drawing on concurrent engineering, expands the definition of the market to include all supply-chain participants, not just the installers and advocates the establishment of a complete supply chain, possible only if every member of the chain foresees net benefits to joining. In strengthening the commercialization process, the product might experience better probability of success. Originality/value - The paper places reason upon product failure, in the residential construction industry, through further investigation of sound commercialization process.