Signaling new product introduction delays: Determinants of clarity of delay-duration announcements

Abstract

To benefit from being first into the market, many firms deliberately release information about a new product well ahead of its actual introduction, but often subsequently fail to meet the pre-announced due date. The primary aim of the study reported here was to expand understanding of the determinants of the clarity of announcements concerning delays to new-product introductions, specifically by examining the antecedents of a firm`s propensity to issue clear signals regarding the likely date of eventual availability. Empirical analysis of data collected by questionnaire from 113 manufacturers in the telecommunications, consumer electronics, and computer hardware and software sectors in Taiwan found that signal clarity can be explained by factors that are sender-specific (competitive equity building), product-related (prevalence of launch delays, expected duration of delay, and degree of control over delay), and receiver-related (competitive elasticity). A structural model is proposed, to serve as a framework for management decision-making.