The impact of user innovator mindset on feedback volume, feedback diversity and new product development performance

PurposeThis study examines the influence of different user innovator mindsets on new product development (NPD) performance. The current research explores the relative impact of a product-focused user innovator mindset vs a customer-focused mindset on feedback volume and feedback diversity and investigates the effect of each type of feedback on product improvement and product diffusion.Design/methodology/approachThis study examines these relationships using two distinct types of data. Data on user innovator mindset, feedback characteristics and user innovator improvisation were obtained via an online survey. Archival data on NPD performance measures were acquired directly from an online research database, and results were obtained using confirmatory factor analysis.FindingsThe authors find that while neither type of user innovator mindset directly influences NPD performance, user innovators, who are highly customer-focused, have a significant advantage in sourcing knowledge from users in the form of a higher volume of feedback and more diverse feedback. In turn, feedback volume appears to positively influence product improvement, while feedback diversity positively influences product diffusion. Finally, the effect of both types of feedback on product improvement is enhanced for user innovators who are highly improvisational.Originality/valueThis research highlights the important role that customer focus plays in directly obtaining knowledge from customers (i.e. customer feedback) and the effects of that feedback on NPD performance. This study provides evidence that a user innovator's interest in accurately understanding the needs of their peers improves their access to external knowledge and enhances their innovation efforts.

How specific investments influence NPD performance: exploring the roles of supplier involvement and IT implementation

PurposeThe impact of specific investments to performance has mixed arguments. This paper aims to clarify how and under what conditions specific investments made by manufacturer tailored to supplier affect the new product development (NPD) performance of the manufacturer itself.Design/methodology/approachThis study develops a moderated mediation model, testing the roles of supplier involvement and information technology (IT) implementation by regression and bootstrap analyses from 378 NPD projects.FindingsThe results show both physical and human specific investments positively affect NPD performance. IT implementation strengthens the mediated role of supplier involvement, i.e. the mediator role of supplier involvement between specific investments and NPD performance link is significantly weaker while IT implementation is lower.Originality/valueThe findings contribute to identify IT implementation and supplier involvement as two important constructs, together demonstrating how and when specific investments affect NPD performance.

Strategic Orientation, Digital Capabilities, and New Product Development in Emerging Market Firms: The Moderating Role of Corporate Social Responsibility

Strategic orientation represents an important antecedent condition for new product development (NPD) performance, which can help firms create competitive advantage and promote sustainable growth. This study aims to explore the role of strategic orientation (i.e., technology orientation, customer orientation) in promoting firms’ digital capabilities and NPD performance in the context of digital transformation. Using a resource-based view and its extended dynamic capabilities as a theoretical foundation, we provide a comprehensive framework by developing a set of hypotheses. In addition, we examine the moderating effect of corporate social responsibility (CSR) on the relationship between strategic orientation and NPD performance. Using data from a sample of 174 Chinese manufacturing firms, we perform structural equation modelling to empirically test our arguments. Our findings show that technology orientation and customer orientation play a critical role in driving firms’ digital capabilities. Moreover, we find that the two dimensions of strategic orientation tend to exert different effects on NPD performance, with technology orientation playing a more significant role than customer orientation in contributing to NPD performance. Finally, our findings strongly suggest that a firm’s CSR engagement moderates the relationship between its customer orientation and NPD performance, such that the higher the firm’s engagement in CSR, the greater the contribution of customer orientation to the firm’s NPD performance. Our findings provide new insights into non-market mechanisms such as CSR through which firms can compensate for their strategically oriented practices in the NPD process.

The double-edged sword effect of social media usage on new product development performance: evidence from Chinese firms

PurposeResearch on social media frequently analyze social media usage (SMU)'s positive consequences for organizations and individuals; however, recent innovation studies caution that SMU may not always lead to positive new product development (NPD) outcomes. The competing streams of research highlight a fundamental tension that exists in the social media literature exemplified by the question: Is SMU good or bad for NPD? In this manuscript, the authors suggest that a more appropriate question as follows: What are the positive and negative indirect effects of SMU on NPD performance? The purpose of this paper is to discuss the aforementioned points in detail.Design/methodology/approachA literature review provides the model and hypotheses. Using a sample of 168 Chinese firms, the authors conducted an empirical test following multiple regression analysis.FindingsThe results demonstrate that SMU facilitates business analytics (ability) and social legitimacy (opportunity) but impairs entrepreneurial proclivity (motivation). These three constructs in turn mediate the effect of SMU on NPD performance. Moreover, this paper explores how technological turbulence moderates SMU's effects on business analytics, entrepreneurship proclivity and social legitimacy.Research limitations/implicationsThe results may be affected by both the context (solely in China) and type (cross-sectional) of the data set. Future research might take a decompositional approach to study SMU's effect on innovation in different NPD stages. Furthermore, with widely varying purposes (e.g., marketing, information searching, partner collaboration, new product launch, etc.), there is certainly a need for more clarity and understanding of how firms can leverage each of these different social media activities for successful NPD.Practical implicationsFirst, we suggest that managers in China should be explicitly aware of the double-edged sword effect of SMU on NPD performance. Second, this study encourages managers to use social media carefully when technological turbulence becomes intense.Originality/valueDrawing on the ability–motivation–opportunity framework, this is one of the first studies to simultaneously examines the benefits and costs of SMU for NPD. In addition, this paper bridges the separate literatures on social media, business analytics, entrepreneurial proclivity and social legitimacy and contributes to the NPD research.

Entrepreneurial Bricolage and New Product Development Performance in New Ventures: The Contingent Effects of Founding Team Involvement

New product development (NPD) performance is a key determinant of a new venture’s success. However, compared with established firms, new ventures often suffer from resource constraints when developing new products. Entrepreneurial bricolage is reported in the literature as an alternative strategic option that enables managers to overcome resource constraints when developing new products. However, because new ventures are often founded by an entrepreneurial team, the effectiveness and efficiency of using bricolage to improve NPD performance might be contingent on how the founding team plays its roles in this process. Using data from 323 new ventures in China, we find support for the critical role of entrepreneurial bricolage in improving NPD success under resource constraints. More importantly, our results reveal that the bricolage strategy is more likely to benefit a venture when the founding team is composed of members with diverse functional backgrounds and is not heavily involved in strategic decision-making.

The Relationship Between Unlearning and Innovation Ambidexterity with the Performance of New Product Development Teams

Previous research has suggested that unlearning is not linked to performance improvements in a team setting. Further, unlearning may have deleterious effects on performance outcomes because when it happens, teams are likely to lose the way they perform tasks and the reasons for their operational existence. In contrast, this study predicts that teams can conduct exploitative and exploratory activities in a balanced manner predicated on unlearning practices to improve new product development (NPD) performance. We hypothesized that while unlearning allows NPD teams to balance exploitative and exploratory learning activities, simultaneous yet balanced exploitation and exploration at high levels, namely innovation ambidexterity, links unlearning practices to NPD performance. This occurs by providing task-relevant knowledge for the replacement of outdated routines and beliefs during NPD processes. Data were collected from 198 NPD teams (i.e., 464 individual participants). The examination of ordinary least squares regression-based path analyses revealed that innovation ambidexterity mediates the relationship of unlearning with NPD performance, operationalized as product development speed, cost, and product success. Overall, this study shows that the unlearning-performance relationship occurs through simultaneous exploitative and exploratory learning activities in a balanced manner.

Re-examining the New Product Paradox: How Innovation Ambidexterity Mediates the Market Orientation and New Product Development Performance Relationship

More and more well-documented failure of established companies which could not respond to rapid market changes, such as Kodak and Nokia, demonstrate the importance of transferring marketing information into real firm performance. While marketing strategy and management literature has long advocated the direct impact of strong firm market orientation (MO) on new product development (NPD) performance, limited research has discussed the mediating mechanism of this MO-NPD performance relationship. Using the traditional source–position–performance (SPP) framework, this study focuses on the innovation ambidexterity perspective to investigate the mediating mechanism between MO and NPD performance. Then, this study proposed a conceptual framework and propositions to examine the MO - NPD performance relationship further. Theoretical and practical implications of the findings are also discussed.