Developing and Explaining the Influential Components of New Product Development in the Food Industry with a Competitive Advantage Creation Approach

Abstract

This study aimed to develop, explain, and validate a new product development model in the food industry based on the creation of competitive advantage and the identification of its key influencing factors. This research employed a mixed-methods design. In the qualitative phase, Grounded Theory methodology was applied through semi-structured in-depth interviews with 15 academic and industry experts. Data were analyzed using Strauss and Corbin’s open, axial, and selective coding procedures, resulting in the identification of 94 initial codes and the extraction of the model’s core categories. In the quantitative phase, the proposed model was tested using Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) among 148 senior managers and experts from food and sugar manufacturing companies listed on the Tehran Stock Exchange. Qualitative findings revealed that structural, managerial, market-related, and technological factors constituted causal conditions; marketing and sales, product-related, financial, research and development, and production-operation factors represented contextual conditions; and industry competitive environment functioned as an intervening condition. The major strategies identified included investment in product development, customer knowledge management, integrated management systems, and promotion of new products. Quantitative findings confirmed the significance of all hypothesized relationships (Sig<0.005). Market-related factors (β=0.496), competitive environment (β=0.452), and financial factors (β=0.379) exerted the strongest effects on new product development strategies. Furthermore, new product development strategies significantly influenced sustainable competitive advantage (β=0.926) and customer satisfaction (β=0.803). The findings indicate that successful new product development in the food industry requires simultaneous attention to organizational, managerial, market, technological, and financial dimensions. Implementing integrated product development strategies, leveraging customer knowledge, and strengthening cross-functional collaboration can enhance sustainable competitive advantage and customer satisfaction. Therefore, the proposed model provides a practical framework for strategic decision-making and performance improvement in food manufacturing firms.