Assessing the drivers and capabilities for faster product launch: a scale for time‐to‐market reduction in start‐ups

Abstract

The acceleration of new product development (NPD) and market introduction is essential for companies to maintain competitiveness, enhance customer base, and achieve financial success. While the existing literature addresses time‐to‐market (TTM) reduction factors in a scattered manner, focusing on aspects like supplier and customer involvement, leadership, and learning, there is a noticeable gap in construct development and measurement validation for TTM reduction, particularly in start‐up contexts. Addressing this gap, our research introduces and validates a comprehensive, hierarchical scale designed to measure both the drivers and capabilities associated with TTM reduction in start‐ups. This innovative scale broadens the scope of traditional constructs, incorporating emerging dimensions such as transformational leadership, experiential learning, agile methodologies, and dynamic marketing strategies. We used our dataset and structural equation modeling (SEM) to validate the proposed scale, comparing the effect of drivers and capabilities on TTM reduction and the role of companies' age on this relationship. This approach confirms the scale's reliability and highlights its versatility. This research holds significant implications for enhancing NPD endeavors in start‐up environments. Introducing a methodologically robust scale equips managers with a powerful tool for setting realistic goals, monitoring progress, and assessing capabilities and contextual factors to refine NPD processes. Furthermore, the scale serves as a benchmarking instrument for start‐ups, aiding them in attracting investments and achieving a competitive advantage. Our study, therefore, stands as an essential contribution to the strategic management of NPD in the dynamic and evolving landscape of start‐ups.