An investigation of new product introductions in the Danish food industry: survey findings
Special Symposium - Innovations in Food Technology (LMC Congress)
Meals - Convenience, Gastronomy & Quality (Food-1a)
Keywords: new products, survey, danish, food industry
This paper reports on a firm-level empirical study of new food product introductions. It aims to measure features of new product introduction and uses associated data about the firms to model the process. The paper addresses the Danish food industry, which although thought to be highly innovative at an industry and organisational level, has not been examined at the firm level in this connection. Finally, the paper targets the role of government and its means and potential to bring about change.
New products have been afforded considerable recent importance at the industry and firm level, as well as being an accelerant of regional development. The food industry has until recently been viewed as a consumer of new technologies, with innovation that is limited to applications that come from beyond its borders. However, new interpretations of product innovation, along with organisational change in the food marketing chain, reveal a more dynamic and creative picture. The current paper uses a database from a recent survey of Danish firms (131 valid responses, a 30% response rate) in food retail, processing and distribution to investigate the introduction frequency and form of new products, their place in branding and overall strategy, and firms’ perceived barriers to such introductions. Past empirical investigation of innovation and new product introduction in the food industry has been limited by a shortage of metrics and reliable data. Further, very little firm-level data has been used, with the preference being for case-studies at executive level, or a focus on the products. The current paper focuses on firms’ characteristics and the role they play in determining well-defined elements of new product development.
Against the conventional wisdom, product introduction cycles appear to have slowed down in the interval studied (2000-2005). However, this result varies across sectors and phases of the product development process. Firms’ impressions of the barriers to new product development feature a plurality of opinion that no such barriers are significant. Key barriers identified (mostly regulatory) differ from those proposed in recent studies, particularly food industry concentration.
A regression model is developed to identify and characterise those attributes of firms that influence new product introduction. Pooling of the independent 2000 and 2005 models is discussed with reference to possible industry- and firm-level developments during this period. The selected (mostly linear) model performs well and is reasonably robust. Firm size, sector and stage of the marketing chain appear to be of minor importance. Parameters on value-added and staff education levels are significant in both 2000 and 2005. Unexpectedly, export as a share of sales is negatively associated with new product introductions, as is the share of sales from brands that the firm owns. For both years, expenditures on new product development and introduction are positively correlated with numbers of new products introduced. The model for 2000 features much more significance of branding behaviour than does the 2005 model. For its part, the 2005 model emphasises the importance of foreign ownership and vertical integration.
Presented Wednesday 19, 15:20 to 15:35, in session Meals - Convenience, Gastronomy & Quality (Food-1a).
