Product Life Cycle Management and Distri
Product Life Cycle Management and Distri
Product Life Cycle Management and Distri
Restuccia, Mariachiara, de Brentani, Ulrike, Legoux, Renaud and Ouellet, Jean-François (2016)
Product lifecycle management and distributor contribution to new product development. Journal
of Product Innovation Management, 33 (1). pp. 69-89. ISSN 0737-6782
This document is made available in accordance with publisher policies and may differ from the
published version or from the version of record. If you wish to cite this item you are advised to
consult the publisher’s version. Please see the URL above for details on accessing the published
version.
Copyright and all moral rights to the version of the paper presented here belong to the individual
author(s) and/or other copyright owners. To the extent reasonable and practicable, the material
made available in SRO has been checked for eligibility before being made available.
Copies of full text items generally can be reproduced, displayed or performed and given to third
parties in any format or medium for personal research or study, educational, or not-for-profit
purposes without prior permission or charge, provided that the authors, title and full bibliographic
details are credited, a hyperlink and/or URL is given for the original metadata page and the
content is not changed in any way.
http://sro.sussex.ac.uk
Product Lifecycle Management and Distributor Contribution
to New Product Development
by
Mariachiara Restuccia*
Ulrike de Brentani
Renaud Legoux
Marketing Department
HEC Montréal
Jean-François Ouellet
Marketing Department
HEC Montréal
* Corresponding Author
Address correspondence to: Dr. Mariachiara Restuccia, Department of Business and Management,
School of Business, Management and Economics, University of Sussex, BN1 9SL, Brighton,
United Kingdom; email: m.restuccia@sussex.ac.uk; phone: +44(0)1273678622.
Biographical Sketches
Dr. Mariachiara Restuccia is Lecturer (Assistant Professor) in Marketing at the School of Busi-
ness, Management and Economics, University of Sussex, United Kingdom. She earned her Ph.D.
in Business Administration at HEC Montréal, Canada. Her main research interests include: new
product development, business-to-business marketing, the marketing-finance interface, and arts
marketing.
Dr. Ulrike de Brentani is Professor of Marketing at John Molson School of Business, Concordia
University, Montreal, Canada and has research interests in new product/service development in
the B2B sector. Current studies deal with Global New Product Development, Fuzzy Front End of
NPD, and Market Vision for new-to-the-world high-tech products. Her work is published in top
journals dealing with innovation, research, and B2B marketing. She was awarded the ―Thomas P.
Hustad Best Paper Award‖ for the top 2007 article in the Journal of Product Innovation Man-
agement and the ―Tudor Rickards Best Paper Award‖ for the top 2010 article in Creativity and
Innovation Management.
Dr. Renaud Legoux is Associate Professor in the Marketing Department at HEC Montréal,
where he is the director of the Master of Management in Cultural Enterprises. Before his academ-
ic career, he worked as a manager for a professional theater company. His current research inter-
ests include B2B marketing, longitudinal dimensions of consumer behavior, arts marketing, and
sponsorship.
Dr. Jean-François Ouellet is Associate Professor in the Marketing Department at HEC Montréal,
where he teaches entrepreneurship and innovation. He also holds a Professorship from the Qué-
bec Government and spends his summers hosting a French-language television show about entre-
preneurship and business.
Product Lifecycle Management and Distributor Contribution
to New Product Development
Abstract
After the initial launch of a new product, distributors are frequently among the first to learn
about product-related problems through the information they get about how it is perceived and
used by customers, and how it might be improved or adapted for broader market coverage. For
producers, such information, which has the potential to impact new product development (NPD)
activities during the product lifecycle management (PLM) phase that follows launch, can be deci-
sive for ensuring the continued viability of the product in the medium-to-longer term. The goal of
this article is to better understand how distributors contribute to producer PLM activities by en-
gaging in product-related information processing. A typology of four distinct scenarios is devel-
oped by integrating three conceptual themes: organizational information processing, dynamic
capabilities, and task complexity. Each scenario results from the interplay of the distributor’s
level (low/high) of capability—specifically, a combination of information coordination and man-
agement of inter-organization relations—and of the degree (low/high) of complexity of the prod-
uct-related problem. The four scenarios are analysed and described in terms of NPD-related
information processing. According to the typology, distributors act as ‘problem informers’ (low
capability/high complexity), ‘solution advisors’ (low capability/low complexity), ‘solution imple-
menters’ (high capability/low complexity) or ‘solution managers’ (high capability/high complexi-
ty). 14 in-depth interviews with distributors and producers in industrial goods provide empirical
evidence for the analysis, description and support of each scenario. The article contributes to
NPD by shedding light on the role of distributors in terms of incremental innovation in the con-
text of PLM. Developers of new products can use the typology in planning for distributor in-
volvement in PLM activities; distributors can use it to map out their current and future level of
engagement in PLM-related activities.
Practitioner Points
The typology developed in this article identifies four ways in which distributors contrib-
ute to incremental innovation during product lifecycle management (PLM).
Distributors act as problem informers, solution advisors, solution implementers and solu-
tion managers, depending on the combination of level of distributor capability and level
of product complexity.
Developers of new products can use the typology in planning for distributor involvement
in PLM activities depending on whether they are looking for information about product-
related problems to be solved or input about ways to address these problems.
Distributors can use the typology to map out current and future level of engagement in
PLM-related activities as part of their quest for competitive differentiation and control
over customer relations.
Key words: Product Life Cycle Management, Distributor Involvement in NPD, Incremental
innovation, New Product Development
Product Lifecycle Management and Distributor Contribution to NPD 1
Introduction
After a new product is launched, distributors are at the forefront to inform producers about prob-
lems they identify through the feedback they receive from customers about product usage, need
for technical support, requests for modifications or customization, and information about compet-
itor advances (Crawford and Di Benedetto, 2011; Mudambi and Aggarwal, 2003). Such product-
related information is potentially of value for producers during the decisive product lifecycle
management (PLM) phase that follows new product launch. During PLM, producers are typically
involved in incremental new product development (NPD), including modifications, updates and
improvements that ensure the initial viability of the new product and also support its competitive
sustainability over the medium-to-longer term (Ausura et al., 2005; Urban and Hauser, 1993).
This type of NPD is extremely important as is indicated by Cooper (2011), who notes that close
to 40 percent of new products in the NPD program of firms entail incremental innovations. Fur-
ther, the relevance of distributors in this regard has been shown in Accenture (2009), which notes
that top performing manufacturing companies ―obtain new ideas from channel members and dis-
tributors for more than 25 percent of their new products‖ (p.12). Indeed, evidence presented in
the current article suggests that distributors go beyond the mere transfer of information about
utors or manufacturer agents—whose primary function is to make products available for con-
sumption (Coughlan et al., 2006), can also be viewed as contributing to NPD through the infor-
mation they process and the activities they undertake that are relevant for incremental NPD dur-
ing PLM. This supports the contention by Yoon and Lilien (1988) that distributors contribute to
improving producers‘ NPD process, and that companies increasingly make a connection between
A closer look at the PLM literature reveals, however, that distributors are viewed almost
exclusively in terms of their traditional channel function as intermediary sales agents (Ausura et
al., 2005; Urban and Hauser, 1993)—that is, as a source of information about sales, shipping,
inventory handling and channel logistics. Indeed, their role as a source of ‗product-related‘ in-
formation with the potential to contribute to NPD during PLM has been largely ignored.i PLM
‗best practices‘ do not list distributors as a relevant source of product information for producers;
but do detail the value of internal sales personnel or suppliers in this regard (Ausura et al., 2005;
Ernst, Hoyer and Rübsaamen, 2010; Saaksvuori and Immonen, 2008). It is important to note that,
according to the U.S. Census Bureau (2010), industrial sales through indirect channels outnumber
by three-to-one those involving direct connections. Thus, by focusing primarily on internal sales
during PLM.
source of information and activity relevant to incremental NPD during PLM. The research adopts
a typological approach (Doty and Glick, 1994; George and Bennett, 2005) by which to identify
process NPD-related information—and how these patterns affect a focal outcome; that is, how
distributors contribute to producers‘ incremental innovation during PLM. The typology and its
analysis ares based on three conceptual themes: organization information processing (OIP), dy-
namic capabilities ii and task complexity. According to OIP and dynamic capabilities theories,
knowledge and information processing are among the key mechanisms by which firms make
sense of their environment and adapt their processes accordingly (Kleinschmidt, de Brentani and
Salomo, 2007; Teece et al., 1997). This is consistent with the primacy of information in NPD as
an element underlying all innovation activity (Moenaert et al., 2000; Zahay et al., 2011), and in
Product Lifecycle Management and Distributor Contribution to NPD 3
channels as an essential for achieving effective working relationships among channel members
(Anderson and Narus, 1990; Coughlan et al., 2006). This research proposes that to generate and
process information relevant for NPD during PLM, distributors deploy two key capabilities; the
tion, the typology incorporates the concept of task complexity as this is key to the type and extent
of information processing undertaken (Tushman and Nadler, 1978), and to the level of capability
required by firms (Zollo and Winter, 2002) for dealing with problems. Thus, a two-by-two typol-
ogy is proposed where product-related information processing activities by distributors are de-
scribed and analyzed in terms of varying (low/high) levels of information coordination and inter-
The typology is supported by evidence from 14 in-depth interviews with managers of North
American industrial manufacturing and distribution firms. Four distinct scenarios of product-
related information processing activities carried out by distributors are identified using the com-
bination of low/high level of capabilities and task complexity. According to the typology, distrib-
utors do not limit themselves to the simple problem informer function described in the literature,
in which they transmit basic information about product-related problems to the producer. The
research indicates that this scenario is relevant primarily when distributors have a low capability
level and are faced with product-related problems of high complexity. According to the typology,
some distributors go beyond simple information transmission and contribute to the actual solution
of the problem. In cases where a basic (low) capability level is enough to tackle low complexity
problems, some distributors act as solution advisors by providing ideas about how the problem
might be addressed. Others—those with high capability levels—become even more involved: as
solution implementers, by actually effecting the product modification needed to address a simple
problem; or as solution managers by acting as quasi ‗brokers‘ between customer and producer for
Product Lifecycle Management and Distributor Contribution to NPD 4
the purpose of facilitating the solution to a complex problem. Indeed, according to recent litera-
ture, environmental dynamics in distribution increasingly call for industrial distributors to go be-
yond their traditional role and take on more sophisticated tasks such as involvement in NPD in
order to provide greater value for customers and thereby gain a competitive advantage (Mudambi
The research contributes to both theory and practice by enriching the extant literature about
the channel and product management interface (Rosenbloom, 2013). From a scholarly standpoint,
the typology adds to the stream of research on distributor contribution to NPD (Biemans, 1991;
Song and Zhao, 2004; Yoon and Lilien, 1988) by identifying, analyzing and describing relevant
scenarios in this regard. Further, it responds to the call in the NPD literature for a better under-
standing of PLM (Kahn et al., 2006); this, by expanding on input coming from external channel
partners, depending on their level of capability and on the complexity of the problem they en-
counter. Given the importance of incremental innovation in NPD during PLM (Cooper, 2011;
Kahn et al., 2006), the typology offers insights about distributor activities that contribute to this.
From a managerial standpoint, the typology can be useful for distributors in mapping out their
level of engagement in product-related information processing and in planning for the future in
terms of developing more advanced capabilities and resources in this regard. Producers can use
the typology to identify what type and level of contribution to expect from distributors, and to
decide when and how distributor input should be integrated as part of the NPD program during
PLM.
Theoretical Framework
Product lifecycle management (PLM) consists of the continued NPD activities that take place
after the launch of a new product by which firms ―[change] the features and benefits of the prod-
Product Lifecycle Management and Distributor Contribution to NPD 5
uct […] to maximize the profits obtainable from the product over its lifecycle‖ (PDMA Glossary,
2005, p. 602). These activities lead to product modifications, updates and improvements over the
medium-to-longer term and, as such, entail new products that are at the incremental end of the
innovation spectrum (Ausura et al., 2005; Urban and Hauser, 1993). For producers, PLM in-
volves important information processing activities oriented towards changing product features
and benefits, including: tracking customer satisfaction or problems, monitoring product reinven-
tions or changes introduced by competitors, and observing product usage patterns (Millson and
Wilemon, 2002). These activities have in common the issue of identifying and changing the ini-
tial new product such that it remains a viable and competitive entity in the marketplace over its
lifecycle.
In this article it is argued that, because indirect channel members perform the role of gate-
keeper between producer and customer (Coughlan et al., 2006), they are likely to engage in the
type of tracking, monitoring and observing so important for PLM. Therefore, distributors may
ing solutions to these. Because distributors engage in multiple activities, ranging from gathering
customer feedback to providing technical support, the goal of this research is to better understand
the information processing they undertake that is relevant to PLM. This goal is achieved through
uct-related problems. Using a typological approach allows for the identification of ―[generalized]
pathways through which particular types [of organizational behaviors] relate to specific outcomes‖
(George and Bennett, 2005, p.235-236). Typologies qualify patterns in which differences can be
captured by a unique combination of attributes that lead to relevant outcomes (Doty and Glick,
1994). Three conceptual themes provide the building blocks of the typology: organizational in-
Organizational information processing (OIP) theory is a key conceptual theme of this ty-
pology because of the primacy of information to the functioning of both channels and NPD pro-
cesses (Coughlan et al., 2006; Moenaert and Souder, 1990). Thus, distributor contribution to
PLM is investigated and analysed in terms of such information processing activities as: infor-
mation acquisition, interpretation, transmission, storage, retrieval and usage (Huber, 1991). But,
not all distributors demonstrate the same activity with respect to product-related information pro-
cessing. In order to capture this variation, the second conceptual theme underlying the typology is
dynamic capabilities theory, which proposes that firms develop specific capabilities in order to
cope with a changing environment and to achieve a sustainable competitive advantage (Teece et
al., 1997). Given the dynamic environment in which industrial distributors operate (Olsson et al.,
2013), their ability to thrive, indeed survive, has been associated with their ability to create value
through the development of more advanced levels of market and technical knowledge, as well as
skills in relating with customers, partners and suppliers (Mudambi and Aggarwal, 2003). Thus, a
key factor in defining the typology is the dynamic capabilities of firms—specifically, those in-
organizational relationships (Kleinschmidt et al., 2007; Lorenzoni and Lipparini, 1999). The third
conceptual theme underlying the typology is the complexity of the task involved. The extant lit-
erature links complexity to the type and level of information processing undertaken by organiza-
tions (Choo, 2002; Tushman and Nadler, 1978). A higher level of complexity increases uncer-
tainty and thus calls for greater and deeper information processing by individuals and organiza-
tions (Campbell, 1988; Clark, et al., 2006). This link is also relevant in the contexts of NPD (e.g.,
Kim and Wilemon, 2003) and dynamic capabilities (e.g., Zollo and Winters, 2000). Thus, it is
processing depending on their level of capability and on the complexity of the task (or problem)
As a by-product of their channel function, distributors process a substantial volume and variety of
information (Coughlan et al., 2006; Frazier et al., 2009; Pimentel Claro and Oliveira Claro, 2010).
This view is in line with OIP theory, according to which information processing is a key mecha-
nism by which organizations interact with their environment (Tushman and Nadler, 1978). More
specifically, information processing begins with information need, which can result from an
1994). In response, organizations engage in information acquisition, where data are collected
from relevant stakeholders, both internal and external (Frishammar and Åke Hörte, 2005; Zahay
et al., 2011). Interpretation follows, giving meaning to the information (Huber, 1991), while
transmission consists of sharing the interpreted information with potential users (Frishammar and
Åke Hörte, 2005; Huber, 1991). Then comes information storage (Choo, 2002); this, for varying
amounts of time, depending on whether the information is immediately usable (Choo, 2002; Day,
1994). The final activities entail information retrieval and usage, where the stored data are ac-
cessed and deployed to make decisions (Moorman, 1995). Information usage can take the form of
streams of research in marketing and NPD were considered. According to the literature on market
orientation, distributors are a relevant source of market knowledge (e.g., Kohli et al., 1993) and in
the NPD literature, are seen as a potential source of ideas and feedback regarding new product
introductions (Crawford and Di Benedetto, 2011). Table 1 provides a summary of the literature.
This indicates that distributors are seen as a relevant source of information in general and to a
Product Lifecycle Management and Distributor Contribution to NPD 8
lesser extent in regard to NPD. It should be noted that information generated by distributors is
valuable to producers only if shared. This highlights the importance of relational capabilities on
the part of distributors that facilitate information sharing dynamics such as interdependence, trust,
As shown in table 1, little attention has been paid to the role of distributors as information
processors with the potential to contribute to incremental NPD during PLM. In the PLM ‗best
practices‘ literature (Ausura et al., 2005), it is company sales personnel and suppliers (Ernst et al.,
2010; Petersen et al., 2003) who are seen as primary sources of information in this regard. In the
case of distributors, given their downstream position in the supply chain, the emphasis is on the
handling of channel logistics and achieving market coverage (Ausura et al., 2005). While some
scholars do refer to distributor information processing activities after new product launch, topics
deal primarily with marketing mix variables other than ‗product‘ (i.e., promotion and pricing)
(Song et al., 2008; Song and Zhao, 2004). This limited role is linked to the view in the NPD liter-
ature of distributors as external sales agents in charge of bringing already developed products to
market (Hultink et al., 1997; Song and Zhao, 2004). A minority of authors refer to distributors as
potential contributors to the product variable, and such references tend to be nonspecific and ex-
clude PLM activities. More specifically, distributor input to NPD is noted in the literature as a
possible source of information for: new product ideas (Crawford and Di Benedetto, 2011; Lons-
dale et al., 1996); feedback on product usage, acceptance and problems (Crawford and Di Bene-
detto, 2011; Mudambi and Aggarwal, 2003); and for quality improvements (Weber, 2001). In
sum, the potential for distributors to generate product-related information relevant for NPD has
Despite this neglect, given that activities of gathering and transmitting information about
product-related problems by distributors take place primarily after new product launch (Mudambi
and Aggarwal, 2003), one can expect that their contributions to innovation during PLM have the
potential to be more significant. From the more general statements found in the literature about
expect the relatively passive role, referred to in this study as problem informer. There is evidence
to suggest, however, that distributors go beyond just sharing information about problems; Weber
(2001) notes that they can contribute to the enhancement of product quality. Such changes to
existing products typically take place during PLM (PDMA Glossary, 2005), suggesting the po-
tential for a broader range of contributions resulting from the information processing activities of
distributors. This study shows that by deploying specific capabilities, more sophisticated contri-
butions are indeed made by distributors that go beyond simply raising awareness about to formu-
To expand on the view of distributors as simple ‗problem informers‘, it is proposed that enhanced
contributions to NPD during PLM are made when distributors deploy specific capabilities by
(Kleinschmidt et al., 2007; Lorenzoni and Lipparini, 1999). To this end, resource-based/dynamic
capabilities theory provides the theoretical foundation to further qualify distributors‘ information
Resource-based theory postulates that the key source of sustained competitive advantage is
the firm‘s resource endowments (Barney et al., 2011). These include inimitable intangibles de-
veloped over time such as organizational culture, knowledge, experience, and working relation-
Product Lifecycle Management and Distributor Contribution to NPD 10
ships (Teece et al., 1997). Resources are defined as ―assets linked semi-permanently to the firm
and that allow it to conceive and execute value-creating strategies‖ (Morgan et al., 2009, p.910).
In changing business environments, however, organizations also need specific dynamic capabili-
ties by which to leverage and deploy their resources (Teece et al., 1997). Accordingly, capabili-
ties are processes, skills, actions or routines developed by firms in order to ―adapt, integrate and
reconfigure internal and external organizational skills, resources and functional competences to
match the requirements of a changing environment‖ (Verona and Ravasi, 2003, p.578).
where specialization in logistics-related activities and simple product handling are no longer ade-
quate for ensuring success. Recent industry reports show that consolidation trends have led to
significant concentration in this sector (Tompkins International, 2013) while at the same time,
customers expect distributors to create value not only by means of competitive prices and product
availability, but especially through support and timely answers to their increasingly complex
needs (Mudambi and Aggarwal, 2003). This puts significant pressure on distributors to differen-
tiate themselves from competitors by responding more effectively to customers and thereby
achieve a competitive edge (Mudambi and Aggarwal, 2003; Olsson et al., 2013).
Olsson et al. (2013) underline that distribution intermediaries respond to changing condi-
tions by developing ―diversity in the capabilities they represent [and through which they] gener-
ate value for their business partners‖ (p.1138). In their analysis of distributor sources of value
creation, Mudambi and Aggarwal (2003) point to three key processes: 1) building personalized
and meaningful relationships with downstream and upstream channel partners; 2) increasing effi-
ciency and effectiveness in production and operations management; and 3) developing and shar-
ing technical and market knowledge. It is worth noting that the second capability—the logistics
role of handling physical goods—is the traditional view of the distributor in the PLM literature
Product Lifecycle Management and Distributor Contribution to NPD 11
(e.g., Ausura et al., 2005). Thus, to expand on the view of distributors beyond their role as logis-
tics intermediary, the typology focuses on the other two value-creating capabilities. Of particular
evant for firms when it comes to achieving a sustained competitive advantage (Eisenhardt and
Martin; 2000; Teece et al., 1997). Through effective information gathering and processing, firms
make sense of their environment and are able to adapt their course of action accordingly. In the
innovation literature, this capability has been shown to have a decisive and positive impact on the
success of companies‘ NPD efforts. According to Kleinschmidt et al. (2007), the capabilities or
routines developed by firms for gathering and processing information are central to success be-
cause ―information about markets and the ability to respond to opportunities and threats underlie
all NPD activities‖ (p.425). In the indirect channel setting, given distributor proximity to markets
(Coughlan et al., 2006; Rosenbloom, 2013), they are in an ideal position to access this type of
To achieve this potential, distributors need a capability that incorporates both market and
technological information, as these are the primary dimensions of any NPD-related endeavour
(Clark and Wheelwright, 1993; Cooper, 2011; Zahay et al., 2011). Given their proximity to cus-
tomers, market knowledge is likely to be strong, providing distributors with expertise about de-
mand, customer needs and wants, and competitor activity (Kohli et al., 1993; Mudambi and
Product Lifecycle Management and Distributor Contribution to NPD 12
Aggarwal, 2003; Song and Zhao, 2004). In addition, distributors possess technical knowledge.
This results from their need to understand the technical specifications of the products they sell,
their experience with after-sales service, and also from their access to information about how
products are used by customers and the problems they incur. Some distributors develop this tech-
nical expertise to a more advanced level as a way of providing improved technical assistance and
thereby responding to the growing demand for increased service in this regard (Mudambi and
Aggarwal, 2003). Thus, by developing routines to combine and interpret information related to
both marketing and technical aspects, distributors are in a position to leverage this knowledge
capability resulting from their role and experience as intermediary between producers and cus-
tomers (Coughlan et al., 2006), which are considered to be a key resource (e.g., Lusch et al.,
(Dyer and Singh, 1998; Lorenzoni and Lipparini, 1999). As per dynamic capabilities theory, it is
essential to enhance this capability if the company is to address the challenges of exchanges with-
in and between organizations (Eisenhardt and Martin, 2000). Establishing working relationships
that ensure the smooth functioning of the channel itself (Anderson and Narus, 1990; Mudambi
and Aggarwal, 2003) is closely associated with information flow in the channel; this, because
information is the key resource generated and exchanged among channel partners (Coughlan et
al., 2006; Frazier et al., 2009). As such, a strong relational capability can be seen as positively
impacting both the information processing and the collaborative NPD activities performed by
companies (Frazier et al., 2009; Sisodiya et al., 2013). This capability is expected to be relevant
organization relations—can be expected to impact how and to what extent distributors process
product-related information during PLM. In the context of this study, some distributors deploy a
higher level of capability than others, thus leveraging their knowledge resource base regarding
marketing and technical aspects, and their experience in managing inter-organization relation-
ships. Distributors defined as ‗high‘ in terms of these capabilities are in a better position to ac-
quire, interpret and use information to solve product-related problems, sometimes without involv-
ing producers. At the other end of the spectrum are distributors whose information coordination
capability is focused on channel- and market-related factors rather than on technical matters, and
whose interactions with upstream and downstream partners are minimal. In the context of PLM,
these distributors are qualified as ‗low‘ in terms of capabilities, offering only limited contribution
to NPD.
Task Complexity: The second attribute underlying the typology of distributor information
processing activity is task complexity. For the purpose of this study, task complexity is defined in
terms of the objective characteristics of the task encountered during information processing
(Campbell, 1988). Consistent with Novak and Eppinger‘s (2001) definition of complexity in the
context of NPD, this study views task complexity as the number of product components affected
by the problem encountered by customers (and therefore by distributors) and the extent of inter-
action between these components. (Note: a third dimension in this definition, degree of product
novelty, is not retained as PLM activities typically involve only incremental NPD; see Urban and
Hauser, 1993). Choo (2002) observes that problems at the origin of information processing can
be categorized along a continuum ranging from simple to complex. Thus, for the typology, a
low/high dichotomy is used as a basis for categorizing product-related problems occurring during
PLM.
Product Lifecycle Management and Distributor Contribution to NPD 14
Task complexity is highly relevant in connection with both dynamic capabilities and OIP.
In the context of dynamic capabilities, Zollo and Winter (2002) underline that firm capabilities
are contingent on the level of uncertainty and complexity found in the environment. This view is
aligned with a key tenet in OIP theory that organizations face different levels of uncertainty in the
tasks they perform and have limited levels of information processing capacities (Galbraith, 1973;
Tushman and Nadler, 1978). Research shows that increased complexity calls for greater and
deeper information processing (Campbell, 1988; Clark et al., 2006). In the NPD literature, in-
creasing complexity of new products is seen as leading to greater effort spent on combining and
making sense of the information gathered and to longer development times (Griffin, 1997; Kim
and Wilemon, 2003). Thus, the varying level of complexity of the product-related problem en-
countered by distributors during PLM is used as the second attribute defining the typology.
This article proposes that the deployment of specific capabilities—information coordination and
on task complexity (i.e., complexity of the product-related problem). The literature acknowledges
that capability (Barreto, 2010) and task complexity (Choo, 2002) vary on a continuum from low
to high. In line with this, a two-by-two matrix is developed resulting in four scenarios, based on
the interplay of low/high levels of capability and of task complexity. This typology is then char-
acterized in terms of the distributor role and activities involving NPD-related information pro-
cessing during PLM. The typology, which is described below, is presented in exhibit 1. (NOTE:
the ‗problem informer‘ label comes from the literature; labels for the other scenarios are based on
the fieldwork.)
Product Lifecycle Management and Distributor Contribution to NPD 15
Starting from the top-left side of the matrix, a first scenario is identified when task com-
plexity is high and the capability level of distributors is low. Distributors cannot handle the com-
plex problem with their basic information coordination routines, especially with regard to the
technical dimension. Even though they are receptive to customer requests and other market-
and informing producers about the problem(s) they identify. The label of ‗problem informer‘ is
used for this scenario, which corresponds to the traditional view of distributors as a source of
The second scenario (bottom-left) results from the match between task complexity and
capabilities, both of which are at a low level. In this scenario, despite their only basic information
coordination and relational capabilities, distributors are in a position to become more involved
with the problems encountered by customers. Because task complexity is low, they are able to
engage in information processing activities that provide insight to the problem, thus allowing
them to enter the domain of ‗solution‘ provision. As part of their role as gatekeeper between cus-
tomer and producer, these distributors often recommend possible product modifications that
could solve the relatively simple problem; hence, the label of ‗solution advisor‘.
Moving to the bottom-right side of the matrix, the third scenario entails low task complexi-
ty, but high levels of capability both in terms of information coordination and inter-organizational
relations. This provides a greater capacity for distributors to process information, allowing them
to comprehend and deal with the problem in a more thorough manner. Instead of waiting for pro-
ducers to act on a given problem, these distributors prioritize their relationships with customers
and implement solutions themselves by deploying their capability to coordinate a higher level
and broader range of information. These distributors play the role of ‗solution implementer‘.
Product Lifecycle Management and Distributor Contribution to NPD 16
Scenario four (top-right) depicts a situation where both task complexity and distributor ca-
pability level are high. Distributors become involved in a full range of information processing
activities, getting a good understanding of the problem and actively participating in facilitating a
solution; this, due to superior technical and marketing expertise, along with an advanced capabil-
ity to manage relationships with customers and producers. Given the complexity of the task,
however, distributors cannot fully exploit the information; producers must become involved. Dis-
tributors in this scenario play a quasi ‗project broker‘ role (de Brentani and Reid, 2012), assem-
bling different stakeholders and facilitating a solution to the problem; hence, the label ‗solution
manager‘.
Methodology
The literature provided the building blocks for developing the typology, but offered only limited
evidence regarding the specific topic in question. Thus, a qualitative approach was used to ex-
plore the scenarios under investigation (Miles and Huberman, 1994; Patton, 2001). Because in-
terviews ―yield in-depth responses about people‘s experiences, perceptions, opinions, feelings,
and knowledge‖ (Patton, 2001, p.4), this approach is of particular value for gaining a rich de-
scription in the context of typologies (Doty and Glick, 1994), providing a better understanding of
The interviews targeted managers of North American industrial equipment and supply
firms. Producer and distributor companies were included in the study in order to explore percep-
tions from both sides of the channel relationship. Industrial equipment and supply sectors were
chosen for the fieldwork because information sharing dynamics between producers and distribu-
tors have been shown to be highly relevant here (Frazier et al., 2009). Prospective respondents
were identified through a combination of public lists (NAICS code 4238: Machinery, equipment
Product Lifecycle Management and Distributor Contribution to NPD 17
and supply merchant wholesalers) and business contacts available to the research team. As incen-
tives, respondents were assured anonymity and promised an executive report. This report was
also used to validate the research conclusions with participants (Miles and Huberman, 1994).
After developing contacts with 50 firms, data from 14 usable in-depth interviews (time: 25
to 75 minutes) that took place over a six month period were analysed. The study used a key in-
formant approach (John and Reve, 1982; Kumar et al., 1993). Interviewees held positions of pres-
ident, VP, or senior manager, thus ensuring that respondents had significant decision-making
experience in their fields. They were knowledgeable about NPD practices in their firms (produc-
ers) or about product-related interactions with producers (distributors). Table 2 provides a sum-
mary of the research participants, including selected descriptive characteristics (e.g., firm size,
sector, market coverage, type of product offering). To ensure confidentiality of participants, pro-
ducer and distributor firms are identified in this study by ‗P‘ and ‗D‘, respectively.
Except for one interview (telephone, D2), all interviews took place at company headquar-
ters. To structure the data collection, two interview guides—one for each side of the channel rela-
tionship (see Appendix)—were developed based on the existing literature and the preliminary
typology derived from this. Questioning moved from general topics to more specific ones. To
begin, respondents were asked to provide general information about their firm (e.g., history, or-
ganizational structure) and the markets in which they operate (e.g., local/international, types of
products). They were questioned about their indirect channel relationships and how NPD-related
information was typically generated and shared within these relationships. Particular attention
Whenever respondents mentioned these, additional questions were asked to probe the details.
Product Lifecycle Management and Distributor Contribution to NPD 18
When this issue did not arise spontaneously, specific questions were asked to gain insight about
these activities.
(Miles and Huberman, 1994; Patton, 2001). Verbatim transcription of interviews was undertaken
before the data were coded using Atlas-TI qualitative data analysis software. Coding was per-
formed using a list of codes developed from the literature and integrated with emerging codes.
The codes covered the different information processing activities, the level of task complexity,
and the level of information coordination and relational capabilities. A code-check verified the
reliability of the coding scheme. A trained independent judge coded a randomly chosen interview,
comprised of 90 thought units defined as a single idea expressed by the respondent across one or
multiple sentences. The resulting Cohen‘s Kappa was 0.795, indicating substantial agreement
among coders (Landis and Koch, 1977). Disagreement was resolved through discussion.
Data analysis took place over several stages. First, interview data were analysed to identify
instances of information processing activity. Next, the results relating to the two groups of re-
spondents (producers, distributors) were compared to identify similarities and differences. Third,
the results relating to the two respondent groups were again compared in order to recognize
common patterns in the information processing activities reported. This process led to over 30
on the theoretical framework, each case was characterized in terms of: level of task complexity,
level of information coordination capability and inter-organization relational capability, and in-
formation processing activities. These instances were grouped to reflect similarities in terms of
low/high task complexity and capability levels. In line with the two-by-two matrix (exhibit 1), ad
hoc labels were derived to describe the patterns of information processing activities beyond the
‗problem informer‘ one derived from the literature. Given the exploratory nature of the study, the
Product Lifecycle Management and Distributor Contribution to NPD 19
frequency of each type should not be seen as representative of the extent to which the scenarios
occur in the universe of the phenomenon (George and Bennett, 2005). Rather, this research is
Findings
The results of the fieldwork allow for a more complete picture of the typology initially developed
from the literature. The problem informer type of distributor (i.e., a basic source of information
about product-related problems) could be derived from previous research; but, a paucity of detail
is available regarding the other three scenarios, the features of which were predicted based on the
interplay between level of capability and task complexity. The in-depth interviews with managers
addressed this issue, providing specifics and insights about the information processing activities
that take place in each of the four scenarios. In total, interviewees mentioned over 30 instances of
formed in each scenario. Overall, all distributors engaged in at least three of these: information
acquisition, interpretation and transmission. Information usage was performed by only two of the
distributor types—that is, solution implementers and solution managers. The four scenarios var-
ied, however, in the way the activities are performed.iii Problem informers and solution advisors
undertake information acquisition more passively than solution implementers and solution man-
agers. In the latter scenarios, there is more purposeful information interpretation oriented towards
implementing a solution to a problem or cooperating in developing it. The only significant depar-
Product Lifecycle Management and Distributor Contribution to NPD 20
ture from the typical sequence of information processing activities occurs in the solution imple-
menter scenario, where transmission to producer follows, rather than precedes, information usage.
Before detailing the scenarios, it should be noted that respondents agreed that these prod-
with upstream partners. D10 stated, ―it happens with only some manufacturers‖ typically when a
strong channel relationship exists. This is in line with past research on information sharing dy-
namics in channels (e.g., Frazier et al., 2009). Yet, the situations were reported repeatedly and
appeared to be a noticeable part of distributors‘ regular activities. The fact that some respondents
described such instances, but that each fit with a different scenario, indicates that distributors
decide to deploy their capabilities to a greater or lesser extent when faced with product-related
problems. This suggests that in some cases, despite having the capability, the distributor does not
have the interest or motivation to doing something about a problem. To this end, evidence is pro-
vided about the reasons for the actual deployment of a high capability level in the two scenarios
concerned. Independent of the specific scenario, there was an awareness on the part of respond-
ents that problems and ideas shared by distributors usually represent ―directions for improve-
ments‖ (D6). Respondents recognized that most decisions to act on product-related information
generated by distributors belong to producers, who assess these inputs according to their NPD
objectives.
Problem Informers
The study includes nine cases of distributor information processing activity most often referred to
in the literature and labelled in this study as problem informer. In this scenario, distributors gath-
er information about product-related problems and transmit it to producers with minimal interpre-
tation taking place (see exhibit 2). This is typical when distributors confront a level of problem
Product Lifecycle Management and Distributor Contribution to NPD 21
complexity that goes beyond their technical skills. Essentially, using their basic level of infor-
mation coordination and relational capability, they inform producers about customer needs and
concerns. Evidence from respondents suggests that most interactions with customers occur during
the initial information acquisition stage; those with manufacturers occur during information
transmission.
Examples of problems identified by problem informers include: ―customer requests for new
features in an electrical transformer‖ (D1); threats from ―new products launched by competitors‖
(P3); and ―lack of conformity to the [National] Standards Association‖ (D1). As underlying rea-
sons for engaging in problem informer type of behavior, respondents noted: ―we need to ensure
that products remain competitive‖ (D1, P3, P4); ―explicit requests from customers‖ (D2, P4);
―part of our daily sales activities‖ (P5) and ―a missed sale‖ (P1). A quotation by D1 is a represen-
tation of the problem informer scenario that incorporates several information processing stages:
We [distributors] take the pulse of the market and bring it to producers. We tell them
that there is a problem with this kind of equipment because customers regularly men-
tion the concern and that something should be done to resolve it. We ask the manu-
facturer if it is possible to develop something. There would be more sales potential if
it were fixed, given the number of requests we receive. Companies are quite open to
listening to us and try to develop something accordingly.
Detailing this scenario in terms of OIP, distributors acting as problem informers engage in
relatively passive information acquisition in that they react to product-related problems arising
from the field (e.g., ―several customers mentioned the concern‖, D1). They undertake minimal
tics (e.g., ―our distributors can give us some feedback on usage issues, as our products are very
complex‖, D2). The final stage of information processing for this group is information transmis-
sion (e.g., ―we bring the pulse of the market to producers‖, D1), which typically entails objective
data about customers. These distributors were quite proactive in transmitting information about a
problem, typically after repeated incidences or specific customer requests triggered an iterative
Product Lifecycle Management and Distributor Contribution to NPD 22
cycle of information acquisition and interpretation. This happens when ―customers regularly
mention [a problem]‖ (D1) or bring up ―a recurrent issue‖ (P5). No evidence of distributor infor-
mation usage was found; only regarding actions taken by the producer based on information pro-
useful ―at the initial stages of the [PLM] development process‖ (P4), when manufacturers are
exploring ways to improve their products (e.g., ―producers ask us to let them know what is/is not
working‖, D2). Overall, the posture of problem informers is quite passive, involving awareness
to producer requests.
Solution Advisors
The second information processing pattern involves solution advisors. Solution advisors perform
the same information processing activities as problem informers, but differ in how they engage in
the interpretation and transmission phases. They do not stop at collecting and sharing information
about a product-related problem, but typically recommend a course of action to solve it. Because
they deal with a product environment involving low task complexity (i.e., few product compo-
nents or simple modular design), they can deploy their basic information coordination capability
to develop ideas about a possible solution. Such ideas are often facilitated by the presence of
technically trained sales personnel (e.g., ―our technicians looked into the problem‖, D6). Re-
spondents in this scenario describe few in-depth interactions with customers and producers, sug-
gesting only limited deployment of their relational capability. Typically, solution advisors ―talk
with the customer during the sale‖ (D5), and then ―tell the manufacturer our idea about a possible
The fieldwork identified twelve instances of distributors acting as solution advisor. Some
pump to match better performing products launched by competitors‖ (D7); ―modifying an agri-
cultural attachment for a telescopic handler to fit with olive-picking methods in Greece‖ (D9);
and providing ―a service component to the sale of the [product] to address customer difficulties
with after-sale support‖ (D8). As underlying reasons for engaging in these activities, respondents
mentioned: ―the product was no longer competitive due to new products launched by competitors‖
(D7); ―we came up with an idea for a new product feature during a sales meeting with a customer‖
(D5, P1), and ―we wanted to differentiate the product from what was currently available in the
As is evident from the above, solution advisors perform information acquisition in a similar
fashion to problem informers and are also relatively passive in that information is acquired
through regular contact with clients (e.g., ―we noticed that several of our customers had similar
problems‖, D8). Important differences, however, emerge during the information processing stag-
es that follow. During information interpretation, instead of noting that a problem might deserve
attention, respondents stated that they themselves tried to make sense of the technical dimension
and to come up with a solution. Due to this enhanced interpretation of, for example, a problem of
―local differences in terminology in the product interface‖ or ―a too rigid sequence in questions to
be answered when using an electronic device‖ (P5), distributors suggested ideas for ―making the
product interface fully adjustable by the user‖ and ―creating a dynamic structure that allows the
nesting of questions depending on the previous answer‖ (P5). Thus, during information transmis-
sion, solution advisors not only alert producers about a problem, but offer ideas about how it
might be solved, leading to a more elaborate information transmission stage. Regarding infor-
Product Lifecycle Management and Distributor Contribution to NPD 24
mation usage, similar to problem informers, there was no evidence of actual usage by distributors.
As stated by D5: ―manufacturers decide whether or not to incorporate our suggestions‖. Never-
theless, compared to problem informers, solution advisors adopt a more proactive posture in that
they engage in sketching out potential changes to product features, which can then be adopted by
Solution Implementers
The third information processing pattern entails distributors acting as solution implementers. In
this scenario, distributors go beyond gathering and interpreting information to share with produc-
ers; they become actively involved in information usage. In other words, these firms use the in-
formation they collect to actually address the problem. Several distributors were identified who,
that facilitated the sale of the product or its post-sale support. These distributors benefit from
their knowledge and relational resources, and deal proactively with a relatively simple problem.
To this end, solution implementers deploy strong relational skills with customers in order to learn
about particular concerns and then use their advanced marketing and technical information coor-
dination capabilities to solve the problem. For example, D9 stated: ―I bring to the sales process
my own expertise as a graduated engineer‖; and D6 noted: ―our sales reps talk to our technicians
when there is a problem.‖ The research shows that solution implementers have an excellent capa-
bility to manage relationships with customers and this facilitates their task throughout the infor-
One customer explained: ―Although I like this platform for the telescopic handler, it
will be tiring to use on a continual basis. I‘d like to be able to remove this barrier
from the platform of the attachment.‖ After getting assurance of purchase from the
customer if we solved this problem, we started talking with our technicians about
what we could do to modify the platform. The customer really liked the modification
we made and bought the product. And…the producer eventually decided to include
our modified platform as a regular item in the catalogue!
Product Lifecycle Management and Distributor Contribution to NPD 25
The question of why some distributors go substantially beyond their traditional role as mar-
keting intermediaries and take over part of the producer‘s role of changing specific product fea-
tures was addressed by several respondents. Five cases offer some detail, providing insight to the
motivation to engage in this type of activity. Solution implementers felt compelled to deploy their
capabilities due to the perceived urgency of ―addressing the weaknesses of the product‖ (D9)
because it is ultimately they who ―are responsible for customer satisfaction‖ (D6). Distributors
also mentioned that they ―cannot afford that customers are not able to work with the tools that we
sell them‖ (D9). Thus, for solution implementers, having the ability to respond in a timely fash-
ion to a problem experienced by customers is an essential part of their effort to create greater val-
ue and thereby differentiate themselves from competitors. Failing to deploy the ‗right‘ level of
capability to meet customer expectations was perceived as detrimental due to the high-pressure
In terms of OIP, distributors acting as solution implementers become much more actively
a strong link with customers, and by wanting to learn about and respond to their concerns. Exam-
ples include: ―this problem has a major impact on our customer‘s operations‖ (D6), or ―there may
be a failure of motion sensors during cold and humid winter days‖ (D9). Further, in this low task
complexity environment, distributors are in a position to deploy their high level information co-
ing insights about actual changes to product features. Several respondents discussed how ―trained
engineers‖ (D6) or ―staff technicians‖ (D9) became actively involved in making sense of the in-
formation gathered and ―found a concrete solution to the problem‖ (D6). In contrast to the two
previous scenarios, solution implementers also directly engage in information usage (note the
qualification of ‗internal‘ usage in exhibit 2). Instead of counting on manufacturers to handle the
Product Lifecycle Management and Distributor Contribution to NPD 26
problem, they respond to the needs of customers more immediately by executing product modifi-
cations themselves. For example, D6 described the decision to ―change the position of a moving
arm in the print-and-apply labelling machine in order to accommodate the round (rather than
square) boxes used by the customer‖. Although occasionally these distributors communicate with
manufacturers prior to implementing a solution (―to ensure that it does not interfere with the rest
of the product‖, D9), in most cases information transmission takes place only after the infor-
mation usage stage (note the qualification of ‗post-hoc‘ in exhibit 2). For example, D6 related:
―we told the manufacturer about the temporary solution we had implemented after the sale was
completed.‖
Compared to the two previous scenarios, solution implementers demonstrate an active pos-
ture when faced with a simple product problem. This proactivity is revealed not only by their in-
depth involvement during earlier stages of information processing, but especially by their direct
engagement in information usage. The resulting implementation of the product modification was
carried out for at least two purposes: (1) ―[it] is a temporary solution that allows the machine to
work with this customer‖ (D9); and (2) ―[it] represents an improvement to the equipment‖ (D9).
One respondent highlighted how, at a later date, ―the manufacturer actually built on our tempo-
rary ‗fix‘ to develop a more permanent solution‖ (D9). Thus, from the producer‘s point of view,
while problem informers and solution advisors influence the idea generation or concept develop-
ment stage when developing incremental new products during PLM, solution implementers can
Solution Managers
The fourth type of product-related information processing scenario identified in this study is la-
belled the solution manager. Eight respondents discussed situations where, instead of implement-
ing a change to a product feature, distributors became actively involved in coordinating a custom-
Product Lifecycle Management and Distributor Contribution to NPD 27
ized solution in collaboration with customers and producers, performing the intermediary role of
‗project broker‘ (de Brentani and Reid, 2012). In this scenario, what contributes to high task
complexity is a complex, integral product design with interrelated components that are not easily
modified or adapted without impacting the functioning of other elements or the product as a
whole. Given this high task complexity, solution managers engage in repeated cycles of infor-
mation acquisition, interpretation and transmission oriented towards finding a solution that meets
the criteria of the relevant stakeholders. Thus, in addition to a high information coordination ca-
pability, distributors‘ inter-organization relational skills play an important role in achieving suc-
cess.
high capability levels derives from a commitment ―to make the life of our customers easier‖ and
also because ―we want to distinguish ourselves [from competitors] by bringing about a solution‖
(D3). They deploy these capabilities because of the ―need to respond to our customers and to
quickly adapt to changes in the market‖ (D2). Furthermore, active participation in the process
was seen as an ―opportunity to achieve higher revenues in the future [from this and other custom-
ers] resulting from the product modification‖ (D8). As such, solution managers appear to be driv-
en to develop and deploy a high capability level by motivations similar to those of solution im-
Different from the implementer scenario, however, solution managers do not achieve these goals
independently. Due to the complexity of the task, they need to ―include suppliers in the process,
notwithstanding [their] high level of competence‖ (D6). Examples of product changes ‗brokered‘
- changes to facial recognition equipment arising from its integration into an hard-
ware/software solution that we provide to our customers (D10);
Product Lifecycle Management and Distributor Contribution to NPD 28
customer-related and technical—required for developing a solution. In effect, they ―bring both
expert customer experience and product knowledge to the manufacturer‖ (D10). Despite a strong
market-plus-technical capability that allows them to play this more sophisticated role, they never-
theless are ―not able to implement the solution on [their] own‖ (D2) due to the high level of task
complexity. Therefore, a high level of relational capability is also needed by these distributors in
order to manage the multiple and on-going interactions between themselves, customers and pro-
We sit down with customers to determine what their needs are. Based on this, we start
to see what we can do with the individual components we offer or with a combination
of products and services…an assembled solution. We also determine the resources
required to address these needs. Once we have a better understanding of what is in-
volved, we turn to the manufacturer and provide the facts, the detailed needs and
sometimes even the resources required to address the issue. While the manufacturer
works on the solution, we take charge of all the back and forth between customer and
producer...At this point, the manufacturer‘s engineering department starts working on
the actual solution; but, we are in charge of deployment at the customer site.
As shown above and in exhibit 2, solution managers deploy substantial effort when it
comes to information acquisition. Repeated exchanges of information regarding market and tech-
nical factors take place in order to gain an ―in-depth understanding of the issues at stake‖ (D8).
During information interpretation, solution managers delineate the product adaptations, accom-
panying services and customizations needed. As part of this purposeful interpretation, distributors
compare the information gathered with the ―competencies, products and services available in-
house and through producers‖ (D6). Once producers become involved, several respondents noted
that information transmission between the firms becomes an on-going and iterative affair. As
Product Lifecycle Management and Distributor Contribution to NPD 29
described by D2: ―we make sure that what we do with the producer corresponds to customer
needs.‖ Finally, this scenario involves shared information usage by both producer and distributor:
the producer develops the modified component(s) or redesigns the product; the distributor over-
In OIP terms, solution managers take on an active posture when it comes to solving prob-
lems during PLM. They not only identify the product-related concerns and transmit these to pro-
ducers (similar to problem informers), they also interpret the information and undertake sophisti-
cated information integration in order to facilitate a solution. Further, they use advanced inter-
organization relational capabilities to mediate the interactions among stakeholders. The scenario
mation processing activities and, differently from the other scenarios, gives producers easier ac-
cess to the information processed by distributors. As in the case of solution implementers, prod-
uct modifications resulting from solution managers fulfil at least two goals: they address custom-
er needs, providing distributors with greater influence over achieving sales objectives; and they
help producers during PLM to make ―potentially more permanent product improvements based
on the customized modifications already undertaken‖ (P4). As stated by D2, ―most exchanges
with producers take place only for the initial prototype; after that, we are out of the picture.‖
In many respects, not the least that the key capabilities of information coordination and
relationship handling must be deployed at a high level, solution managers represent the most
complex scenario described in this study. It should be noted, however, that distributors do not
always begin their contribution to PLM in this role. One respondent (D6) discussed migrating
over time from a less involved role such as solution advisor to the more complex one of solution
manager:
Product Lifecycle Management and Distributor Contribution to NPD 30
It was a slow process. At first, the producer realized that whenever we exchanged in-
formation, this led to an improved product. Sometimes, rather than having a simple
conversation, we engaged in several exchanges. We would make some drawings,
show a video, and ultimately this led to more product changes. We did this several
times and, at a certain point, it became part of our relationship with that manufacturer.
At a later stage, we worked together on solutions where our company played a proac-
tive role in that we identified which parts of the product needed to be modified. This
allowed us to achieve important successes, such as signing a contract with a [major]
customer.
The study builds on evidence in the channels and NPD literatures indicating that, through their
(Weber, 2001) and as a possible source of new product ideas (Crawford and Di Benedetto, 2011;
Lonsdale et al., 1996). But, these literatures offer only limited insight about the dynamics under-
lying the generation and transmission of product-related feedback especially during the important
PLM stage that follows new product launch. Further, the extant PLM literature primarily empha-
ses the logistics-related role of distributors (e.g. Ausura et al., 2005), thus providing only limited
insight about how and the extent to which information coming from distributors benefits incre-
mental NPD (Urban and Hauser, 1993). To address this knowledge gap, an original typology was
developed, based on the themes of task complexity and dynamic capabilities, and then used the
PLM. The typology frames the information processing activities of distributors as driven by the
(low/high) level of two key dynamic capabilities—that is, the combination of information coor-
from the literature are complemented with empirical evidence from managers of B2B producer
and distributor firms. Based on this, four distinct patterns of distributor product-related infor-
Product Lifecycle Management and Distributor Contribution to NPD 31
mation processing during PLM are identified, including: problem informer, solution advisor, so-
Distributors act as problem informers when they provide simple feedback to producers
about product usage issues and/or customer problems. This scenario occurs when task complexity
is high and when distributors deploy a basic (low) capability level. These distributors focus on
minimal interpretation, and only factual information transmission to producers. The study shows,
however, that distributor involvement is not limited to this traditional role. In three of the four
scenarios, they go further by actually getting involved in bringing about a solution to the problem.
In the solution advisor scenario, distributors provide producers with ideas about how a problem
might actually be solved. This occurs when task complexity is low and when distributors use
their basic capabilities not only to acquire and transmit information, but also to interpret the data
and providing insights about solving the problem. While the latter of these two scenarios enriches
the information that is transmitted, in both situations the decision to use the information and to
solve the problem is left to the producer. Looking at the two high-capability scenarios, the poten-
tial for contribution to PLM by distributors is substantially increased. Deploying their higher ca-
more proactive active in the realm of solution provision. In cases of low task complexity, distrib-
utors acting as solution implementers actually change specific product features to address the
problem. These distributors adopt a more proactive stance towards information acquisition and
interpretation, and make deliberate use of the information in order to solve the product-related
problem. Finally, some high capability distributors, when faced with a complex problem, become
solution managers. They act as ‗brokers‘ who coordinate a collaborative effort involving the rel-
evant stakeholders in order to bring about an integrated solution. This scenario is particularly
Product Lifecycle Management and Distributor Contribution to NPD 32
demanding as distributors are required not only to coordinate a variety of information (marketing
and technical), but also to have a distinctive capability to manage the often complex inter-
Theoretical Contributions
By integrating the literatures on innovation and channels, this article responds to the call by Kahn
et al. (2006) to develop extant knowledge about PLM. It shows that it is possible to ―turn indus-
trial distributors into partners‖ (Narus and Anderson, 1986, p. 55). The typology developed and
investigated in this article provides both theoretical and empirical evidence in favour of a broader
role for distributors during PLM, beyond what past research has acknowledged in terms of sup-
port for logistics and market coverage. Further, it provides important evidence and insight about
how the interplay between task complexity and level of firm capabilities—both information co-
interface during PLM. It significantly enhances with specific detail the general statements about
the usefulness of distributor feedback and the checklists that deal with distributors involvement in
NPD-related activities (Crawford and Di Benedetto, 2011; Song and Zhao, 2004; Weber, 2001).
The research further qualifies the type of product feedback coming from distributors, over and
above the simple problem informer type. It identifies specific scenarios where distributors con-
tribute to the actual solution of a problem by formulating ideas about what product features
should be changed (solution advisors), by directly implementing product changes (solution im-
tion managers). These insights about distributor information processing patterns relevant for NPD
during PLM make an important contribution. Through the typology, a better understanding is
Product Lifecycle Management and Distributor Contribution to NPD 33
gained into distributor-producer relationships and into their role in the incremental NPD program
al., 2010).
Building on dynamic capabilities theory, this article sheds light on the mechanisms under-
lying value creation in channel relationships through information flow. The typology underscores
contributing to product innovation. As shown in the findings, processes and skills aimed at coor-
dinating market and technical information, and managing inter-organization relationships are not
only key drivers of value creation in modern distribution (e.g., Mudambi and Aggarwal, 2005;
Olsson et al., 2013), but are fundamental to the ability of distributors to effectively deal with the
product-related concerns of their customers. The findings show that these dynamic capabilities
must be developed and deployed not only by manufacturers, but also by distributors if they are to
take full advantage of the information available to them. When these capability levels are high,
distributors can deal more effectively with the needs of customers and thereby gain a significant
This more active role of distributors suggests that producers‘ innovation processes can ben-
efit from enhanced connections with distributors, similar to what occurs between suppliers and
manufacturers in a ‗Keiretsu‘ context. Dyer (1996) shows how industrial innovation benefits
from linkages between producers and upstream suppliers in what is defined as an ‗American
Keiretsu‘ approach to value chain relationships. This article enriches past studies listing distribu-
tors as partners in Keiretsu configurationsiv (e.g., Lincoln et al., 1996), by exploring the ways in
Managerial Implications
Distributors can use the typology to better plan for achieving differentiation and competitive ad-
vantage thanks to the product-related feedback they have access to. As a hands-on tool, the typol-
ogy can assist distributors regarding the type of information processing they should undertake
depending on the complexity of the problem encountered. Distributors can assess their current
position in terms of information coordination and relational capabilities and decide whether or
not to invest in the enhancement of the resources underlying these capabilities. When operating at
a ‗low‘ capability level, distributors are more dependent on producers for achieving differentia-
tion; this, because they must wait for producers to implement ideas for product modifications that
result from their input as problem informers or solution advisors. With more advanced capabili-
ties, distributors can become more actively involved in addressing their customers‘ concerns.
This occurs either as primary decision makers when acting as solution implementers or as project
coordinators, or project brokers, when acting as solution managers. Whereas a higher capability
level opens to distributors the possibility of contributing directly to differentiation and competi-
tive advantage by solving product-related problems, these intermediaries need to be aware of the
For producers, the typology can serve two purposes. First, they can categorize distributors
based on their level of information coordination and inter-organization relational capabilities, and
product modification tasks planned for the PLM phase in terms of degree of complexity. This
mapping activity would provide an idea of what type of product-related feedback to expect from
which distributors. They can also use the typology to identify at what stage of the incremental
NPD process to integrate input from distributors. Up-front idea generation could benefit from
both problem informers and solution advisors. Including these two types of distributors has the
potential to: gain a better understanding of market needs, increase the number of credible ideas
Product Lifecycle Management and Distributor Contribution to NPD 35
put forward, and reduce this front-end stage in terms of cost and time. The product prototyping
stage would benefit from input from solution implementers and solution managers. In the case of
solution implementers, at least one prototype has already been developed, usually in response to a
relatively simple, but urgent, problem. When undertaking development activities for the next
product generation, producers can potentially use the modification ‗as is‘, thus reducing devel-
opment cost and time; and also lowering uncertainty and risk by using the quasi-gamma test data
resulting from the distributor-implemented solution. When dealing with more complex redevel-
opment scenarios, partnering with solution managers can help to jointly develop a prototype and
gain more direct access to relevant customer and product-related information. In both of these
scenarios, changes to product features are sometimes made to meet the needs of customers who
are ahead of the market (i.e., ‗lead users‘; von Hippel, 1986), resulting in markets with substantial
Finally, the typology can be used by distributors and producers to determine the potential
ships. Distributors with advanced information coordination and relational capabilities can provide
a rich contribution to PLM; but, they might also claim more autonomy in the process. In the
longer run, this power asymmetry has the potential to increase channel conflict (e.g., Webb and
Lambe, 2007) due to diminished compatibility in the goals of channel members and changed ex-
pectations regarding the roles and rights of each party. To address these issues, channel members
must ensure the presence of appropriate incentives, communication mechanisms and trust levels
to facilitate alignment of interests and cooperation (Anderson and Narus, 1990; Palmatier, Dant,
Our study contributes to both theory and practice, as detailed in the previous sections. Neverthe-
less, certain limitations are acknowledged that should be addressed by future research. In particu-
lar, the small sample size and its focus on industrial goods, while coherent with the exploratory
nature of the investigation and its goal to achieve greater understanding of distributor contribu-
tion to PLM, limits the generalizability of the findings. Thus, future research should validate this
typology through a larger scale quantitative study (Doty and Glick, 1994). To ensure that the ty-
the sample should include both manufacturers of goods and service providers. Extant research
shows that service innovation benefits from information from frontline employees or sales repre-
sentatives due to their privileged access to customers (de Brentani, 1989; 2001; Lievens and
Moenaert, 2000). Thus, because of their proximity to local markets, the role of distributors in the
service sector might be even more decisive. Due to the inherently interactive nature of service
offerings (Grönroos, 1998), a more prominent role of relational capabilities could be expected in
Future research should add measures of NPD performance and of environmental conditions.
Given that information processing has a beneficial impact on NPD success (Pentina and Strutton,
2007), the inclusion of performance measures would help in verifying the positive impact on per-
formance suggested by some of the respondents in this study. Whereas distributor input was
were used in this study. It would also be beneficial to study the impact of key environmental fac-
tors—e.g., competitive intensity, market instability or degree of globalization (de Brentani et al.,
2010; Frazier et al., 2009; Song et al., 2008)—on the occurrence of distributor information pro-
cessing types. Future research could test whether an environment that is subject to more rapid
Product Lifecycle Management and Distributor Contribution to NPD 37
change accelerates the development of information coordination and relational capabilities on the
part of distributors, leading to more sophisticated information processing scenarios during PLM.
Finally, future research could explore whether distributors with more advanced capabili-
ties—i.e., solution implementers and solution managers—can help producers to identify ‗lead
users‘ (von Hippel, 1986; Franke, von Hippel and Schreier, 2006). Distributors acting in these
roles sometimes detect pressing needs that are in advance of the majority of customers in a given
market. Distributors‘ active posture towards the problems experienced by these pioneering cus-
tomers can help producers to achieve the enhanced benefits associated with solving them.
Notwithstanding the limitations, the study responds to key questions about the role of dis-
tributors during the PLM phase of the NPD process. Given the dearth of research and the im-
this important topic and a more solid basis both for managerial action and for undertaking further
Acknowledgement: The authors would like to thank the three anonymous reviewers and the edi-
tor for their advice and suggestions during the revision process.
Product Lifecycle Management and Distributor Contribution to NPD 38
References
Accenture. 2009. High performance through product development. In: Accenture research and
insights into product development mastery: Accenture, 15.
Anderson, J.C. and J.A. Narus. 1990. A model of distributor firm and manufacturer firm working
partnerships. Journal of Marketing 54(1): 42-58.
Andrew, J.P., J. Manget, D.C. Michael, A. Taylor and H. Zablit. 2010. Innovation 2010: A return
to prominence and the emergence of a new world order. Boston, MA: Boston Consulting Group.
Ausura, B., B. Gill, and S. Haines. 2005. Overview and context for life-cycle management. In:
The PDMA handbook of new product development, ed. K.B. Kahn, 497-512. Hoboken, NJ: John
Wiley and Sons.
Barney, J.B., D.J. Ketchen, and M. Wright. 2011. The future of resource-based theory. Journal of
Management 37(5): 1299-1315.
Barreto, I. 2010. Dynamic capabilities: A review of past research and an agenda for the future.
Journal of Management 36(1): 256-280.
Biemans, W.G. 1991. User and third-party involvement in developing medical equipment
innovations. Technovation 11(3): 163-182.
Campbell, D.J. 1988. Task complexity: A review and analysis. Academy of Management Review
13(1): 40-52.
Choo, C.W. 2002. Information management for the intelligent organization: The art of scanning
the environment. Medford, NJ: American Society for Information Science and Technology;
Information Today.
Clark, B.H., A.V. Abela, and T. Ambler. 2006. An information processing model of marketing
performance measurement. Journal of Marketing Theory and Practice 14(3): 191-208.
Clark, K.B. and S.C. Wheelwright. 1993. Managing new product and process development: Text
and cases. New York, NY: The Free Press.
Cooper, R. (2011). PERSPECTIVE: The innovation dilemma: How to innovate when the market
is mature. Journal of Product Innovation Management, 28 (s1), 2-27.
Coughlan, A., E. Anderson, L.W. Stern, and A. El-Ansary. 2006. Marketing channels.
Englewood Cliffs, NJ: Prentice Hall.
Crawford, C.M. and A. Di Benedetto. 2011. New products management. 10th edn. New York, NY:
McGraw-Hill/Irwin.
Day, G.S. 1994. The capabilities of market-driven organizations. Journal of Marketing 58(4): 37-
52.
de Brentani, U. 1989. Success and failure in new industrial services. Journal of Product
Innovation Management 6(4): 239-258.
de Brentani, U. 2001. Innovative versus incremental new business services: Different keys for
achieving success. Journal of Product Innovation Management 18(3): 169-187.
de Brentani, U., E.J. Kleinschmidt, and S. Salomo. 2010. Success in global new product
development: Impact of strategy and the behavioral environment of the firm. Journal of Product
Innovation Management 27(2): 143-160.
de Brentani, U. and S.E. Reid. 2012. The fuzzy front end of discontinuous innovation: Insights
for research and management. Journal of Product Innovation Management 29(1): 70-87.
Doty, D.H. and W.H. Glick. 1994. Typologies as a unique form of theory building: Toward
improved understanding and modeling. Academy of Management Review 19(2): 230-251.
Dyer, J.H. 1996. How Chrysler created an American Keiretsu. Harvard Business Review 74(4):
42-56.
Product Lifecycle Management and Distributor Contribution to NPD 39
Dyer, J.H. and H. Singh. 1998. The relational view: Cooperative strategy and sources of
interorganizational competitive advantage. Academy of Management Review 23(4): 660-679.
Eisenhardt, K.M. and J.A. Martin. 2000. Dynamic capabilities: What are they? Strategic
Management Journal 21(10/11): 1105-1121.
Ernst, H., W.D. Hoyer, and C. Rübsaamen. 2010. Sales, marketing, and research-and-
development cooperation across new product development stages: Implications for success.
Journal of Marketing 74(5): 80-92.
Franke, N., E. von Hippel, and M. Schreier. 2006. Finding commercially attractive user
innovations: A test of lead-user theory. Journal of Product Innovation Management 23(4): 301-
315.
Frazier, G.L., E. Maltz, K.D. Antia, and A. Rindfleisch. 2009. Distributor sharing of strategic
information with suppliers. Journal of Marketing 73(4): 31-43.
Frishammar, J. and S. Åke Hörte. 2005. Managing external information in manufacturing firms:
The impact on innovation performance. Journal of Product Innovation Management 22(3): 251-
266.
Galbraith, J.R. 1973. Designing complex organizations. Boston, MA: Addison-Wesley Longman
Publishing Co.
George, A.L. and A. Bennett. 2005. Integrating comparative and within-case analysis:
Typological theory. In: Case studies and theory development in the social sciences, ed. A.L.
George and A. Bennett, 233-262. Cambridge, MA: M.I.T. Press.
Griffin, A. 1997. PDMA Research on new product development practices: Updating trends and
benchmarking best practices. Journal of Product Innovation Management 14(6): 429-458.
Grönroos, C. 1998. Marketing services: The case of a missing product. Journal of Business &
Industrial Marketing 13(4/5): 322-338.
Huber, G.P. 1991. Organizational learning: The contributing processes and the literatures.
Organization Science 2(1): 88-115.
Hultink, E.J., A. Griffin, S. Hart, and H.S.J. Robben. 1997. Industrial new product launch
strategies and product development performance. Journal of Product Innovation Management
14(4): 243-257.
John, G. and T. Reve. 1982. The reliability and validity of key informant data from dyadic
relationships in marketing channels. Journal of Marketing Research 19(4): 517-524.
Kahn, K.B., G. Barczak, and R. Moss. 2006. PERSPECTIVE: Establishing an NPD best practices
framework. Journal of Product Innovation Management 23(2): 106-116.
Kim, J. and D. Wilemon. 2003. Sources and assessment of complexity in NPD projects. R&D
Management, 33(1): 15-30.
Kleinschmidt, E.J., U. de Brentani, and S. Salomo. 2007. Performance of global new product
development programs: A resource-based view. Journal of Product Innovation Management
24(5): 419-441.
Kohli, A.K., B.J. Jaworski, and A. Kumar. 1993. MARKOR: A measure of market orientation.
Journal of Marketing Research 30(4): 467-477.
Kumar, N., L.W. Stern, and J.C. Anderson. 1993. Conducting interorganizational research using
key informants. Academy of Management Journal 36(6): 1633-1651.
Landis, J.R. and G.G. Koch. 1977. The measurement of observer agreement for categorical data.
Biometrics 33(1): 159-74.
Lievens, A. and R.K. Moenaert. 2000. New service teams as information-processing systems:
reducing innovative uncertainty. Journal of Service Research 3(1): 46-65.
Product Lifecycle Management and Distributor Contribution to NPD 40
Lincoln, J.R., M.L. Gerlach, and C.L. Ahmadjian. 1996. Keiretsu networks and corporate
performance in Japan. American Sociological Review 61(1): 67-88.
Lonsdale, R.T., N.M. Noël, and S.F. Stasch. 1996. Classification of sources of new product ideas.
In: The PDMA handbook of new product development, ed. M.D. Rosenau, A. Griffin,
G.A.Castellion and N.F. Anschuetz, 179-193. New York, NY: John Wiley & Sons.
Lorenzoni, G. and A. Lipparini. 1999. The leveraging of interfirm relationships as a distinctive
organizational capability: A longitudinal study. Strategic Management Journal 20(4): 317-338.
Lusch, R.F., J.R. Brown, and M. O'Brien. 2011. Protecting relational assets: A pre and post field
study of a horizontal business combination. Journal of the Academy of Marketing Science 39(2):
175-197.
Miles, M.B. and M. Huberman. 1994. Qualitative data analysis: An expanded sourcebook.
Thousand Oaks, CA: Sage Publications, Inc.
Millson, M.R. and D. Wilemon. 2002. The impact of organizational integration and product
development proficiency on market success. Industrial Marketing Management 31(1): 1-23.
Moenaert, R.K. and W.E. Souder. 1990. An information transfer model for integrating marketing
and R&D personnel in new product development projects. Journal of Product Innovation
Management 7(2): 91-107.
Moenaert, R.K., F. Caeldries, A. Lievens, and E. Wauters. 2000. Communication flows in
international product innovation teams. Journal of Product Innovation Management 17(5): 360-
377.
Moorman, C. 1995. Organizational market information processes: Cultural antecedents and new
product outcomes. Journal of Marketing Research 32(3): 318-335.
Morgan, N.A., D.W. Vorhies, and C.H. Mason. 2009. Market orientation, marketing capabilities,
and firm performance. Strategic Management Journal 30(8): 909-920.
Mudambi, S. and R. Aggarwal. 2003. Industrial distributors: Can they survive in the new
economy? Industrial Marketing Management 32(4): 317-325.
Narus, J.A. and J.C. Anderson. 1986. Turn your industrial distributors into partners. Harvard
Business Review 64(2): 66-71.
Novak, S. and S.D. Eppinger. 2001. Sourcing by design: Product complexity and the supply
chain. Management Science 47(1): 189-204.
Olsson, R., Gadde, L. E., and Hulthén, K. (2013). The changing role of middlemen: Strategic
responses to distribution dynamics. Industrial Marketing Management, 42(7): 1131-1140.
Palmatier, R.W., R.P. Dant, and D. Grewal. 2007. A comparative longitudinal analysis of
theoretical perspectives of interorganizational relationship performance. Journal of Marketing
71(4): 172-194.
Patton, M.Q. 2001. Qualitative research and evaluation methods. Thousand Oaks, CA: Sage
Publications Inc.
PDMA Glossary. 2005. In: The PDMA handbook of new product development, ed. K.B. Kahn,
59-72. Hoboken, NJ: John Wiley and Sons.
Pentina, I. and D. Strutton. 2007. Information processing and new product success: a meta-
analysis. European Journal of Innovation Management 10(2): 149-175.
Petersen, K.J., R.B. Handfield, and G.L. Ragatz. 2003. A model of supplier integration into new
product development. Journal of Product Innovation Management 20(4): 284-299.
Pimentel Claro, D. and P.B. Oliveira Claro. 2010. Collaborative buyer-supplier relationships and
downstream information in marketing channels. Industrial Marketing Management 39(2): 221-
228.
Rosenbloom, B. 2013. Marketing channels: A management view. Mason: OH: South-Western.
Product Lifecycle Management and Distributor Contribution to NPD 41
Distributor role: - Cooperation with producers during NPD Biemans, 1991; Crawford & Di Benedetto 2011;
NPD activities (in general) Yoon & Lilien, 1988; Song et al., 2008
- Source of new product ideas and contrib- Lonsdale et al., 1996; Crawford & Di Benedetto, 2011;
utors to product quality improvements Weber, 2001
- Feedback on promotion- and pricing- Song et al., 2008; Song & Zhao, 2004
related issues during launch
- Source of feedback: product usage, ac- Crawford & Di Benedetto, 2011; Mudambi & Aggarwal,
ceptance and/or problems 2003
- Primary role during PLM: achieve mar-
ket coverage, logistics support Ausura et al., 2005; Urban & Hauser, 1993
Product Lifecycle Management and Distributor Contribution to NPD 43
actions with other parts), they not only entire process of identifying and, inde-
acquire information about the problem, pendent of producers, actually imple-
but also come up with ideas for possible menting a solution to a relatively simple
solutions. product-related problem (few components
and/or interactions).
Product Lifecycle Management and Distributor Contribution to NPD 45
Appendix
Interview Guide for Producers
1. Could you briefly describe your field of activity?
2. How do you generate, develop and launch new products?
3. When do you develop new products? Do you collaborate with business partners?
4. Do your distributors give you feedback about new products that you launched to the market? If
yes, please respond to the following questions:
4.1 Can you provide more details about some of the product modifications associated with feed-
back from your distributors over the past five years?
4.2 What type of information was provided?
4.3 How was this information gathered, interpreted and transmitted to you?
4.4 How did your distributor(s) manage the interactions with all of the parties involved?
5. Do you use any incentives to motivate your distributor(s) to take part in the process?
6. What is your relationship with your distributor(s)?
7. How knowledgeable is/are your distributor(s) about the market? How knowledgeable are you
about your market?
8. How expert is the distributor in technical matters related to this product?
9. What percent of your sales depend on this distributor (past five years)?
10. According to your experience, what are some of the results of distributor participation in NPD
activities that followed the initial launch of the product?
10.1 What were some positive outcomes?
10.2 What were some negative outcomes?
11. Considering your total NPD program over the last 5 years, roughly what is the percentage of im-
provement/adaptation projects in which your distributor(s) participated in some way?
i
Because this article deals with distributor contribution to NPD, as opposed to their primary func-
tion as logistics intermediary, the term ‗product-related‘ activities is used to distinguish between
the two sets of functions. Also, because in this study the product-related information generated by
distributors has the potential to impact NPD, ‗product-related‘ and ‗NPD-related‘ are used inter-
changeably.
ii
The authors thank an anonymous reviewer for the suggestion to use dynamic capabilities theory.
iii
Because all distributors handled information storage and retrieval in a similar manner and be-
cause these two information processing activities are less relevant to the topic in question, they
were omitted from exhibit 2 and only briefly acknowledged in the text where appropriate.
iv
The authors thank an anonymous reviewer for this insight.