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The Role Of Culture On New Product Development Decisions, Sudhir H. Kale

Sudhir H. Kale

This study investigates the effect of culture on the evaluation of new products. We contrast decision-making outcomes between East Asians and Westerners. East Asians tend to view the future as dynamic, nonlinear, and changeable and do not emphasize immediate gain and loss. In contrast, Westerners believe that the future is static, linear, and predictable and pay more attention to the past and present. We hypothesize that given a poor performance forecast, East Asians are more likely than their Western counterparts to continue a new product whereas Westerners are more likely to halt development. However, providing future market demand information moderates …