A Structural Equation Model of the Impact of New Product Development on Competitive Advantage

Sanaz Soltani, Esmaeel Ramazanpoor, Seyedhadi Eslamian


Nowadays most organizations are looking to find the potentials for creating competitive advantages. The ability to develop new products is among the capability benefits and it’s also the central point in contesting for many industries and in fact new products develop more and therefore there is more profits and create a competitive advantage for companies. This assay is to study the relationship between new product and the competitive advantage in chosen food industries of East Azarbayjan Province. The conceptual prototype of this research (relationship between any development in products and competitive advantage dimensions) is prepared based on theoretical and experimental studies and it is followed by a suitable questionnaire to evaluate and measure the variables of study. After the validity and stability was confirmed, the questionnaire was distributed in the statistical sample (Selected food industries managers of Azarbayjan Province) and the selected data was put into the SPSS and LISREL software and those data were analyzed. The statistical data shows that the development of products both (gradual and integral), have a noticeable influence on competitive advantages. Innovation in products with improvement in quality, increase in proficiency, answering the customers and flexibility increase the competitive power of the company and provides a better position in the market for it.

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DOI: http://dx.doi.org/10.5539/emr.v3n1p99

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