Managers at NPD departments of Taiwan consumer electronic industry were interviewed to explore the effects innovation strategy (IS) has on design strategy (DS) and finally on product design characteristics (DC). The fitness of theoretical models and the observed data was examined. A questionnaire survey was conducted. 1300 enterprises in Taiwanconsumer electronic industry were randomly selected as the survey pool. At last, 370 effective questionnaires were collected. Their responses on the questionnaires were analyzed to test the fitness of the model with structural equation modeling analysis (SEM). A proper fitness was found for the correlation theoretical model of IS, DS, DC, and the observed data. In enterprises, IS will influence product DC, and at the same time, IS will influence product DC through DS. Among these three variables, DS serves as an independent variable and intervene variable to DC.
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