Driving-market or market-driven? A case study analysis of the new product development practices of Chinese business-to-business firms

Our current understanding of NPD processes among Chinese firms is limited. Early evidence suggests that the drivers of new product success in the PRC might be different to those in the West. Much of the more recent (Western) literature implicitly identifies the importance of both driving-market and market-driven approaches to NPD success, although what this translates into in practice is less clear. Drawing on multiple case studies, we identify four types of NPD practice in Chinese B2B firms and explore the reasons for variation in performance between the four. Critically, the most successful firms were found to be those characterised by a driving-market approach, rather than those relying solely on relationships and reacting to changing market phenomena. (c) 2006 Elsevier Inc. All rights reserved.