Kwaku Atuahene-Gima

Resolving the Capability—Rigidity Paradox in New Product Innovation

Managers face an important strategic dilemma in product innovation: how to exploit existing product innovation competencies (competence exploitation) while avoiding their dysfunctional rigidity effects by renewing and replacing them with entirely new competencies (competence exploration). Although the resolution of what is termed the “capability–rigidity paradox” is considered a fundamental managerial task in enhancing product innovation outcomes and the firms competitive advantage, it has received little research attention. The author argues and finds support that market orientation provides a key to this paradox. Specifically, customer and competitor orientations ensure simultaneous investments in exploiting existing product innovation competencies and exploring new ones. The author also finds that the effects of these orientations on competence exploitation and exploration are differentially moderated by interfunctional coordination and perceived market opportunity. Regarding outcomes, competence exploitation and exploration have opposing relationships with incremental and radical innovation performance. However, the relationship between competence exploration and radical innovation performance is positively moderated by interfunctional coordination. Overall, the results of this study suggest that market orientation can prevent a firm from becoming operationally efficient but strategically inefficient by simultaneously engendering competence exploitation and exploration, which are differentially related to incremental and radical product innovation outcomes.

Product Innovation Strategy and the Performance of New Technology Ventures in China

Investigating the effect of product innovation strategy on the performance of new technology ventures in China, we found the innovation-performance link was contingent on both environmental factors, including environmental turbulence and institutional support, and the relationship-based strategies of the ventures, such as strategic alliances for product development and political networking. Our results suggest the need for simultaneous consideration of environment- and relationship-based strategy factors as moderators in the discourse on product innovation strategy among new technology ventures.

Market orientation and innovation

Abstract The relationship between market orientation and innovation, particularly product newness, has been debated for decades. We report an empirical study of 158 manufacturing and 117 services firms in Australia to examine the influence of market orientation on innovation characteristics and performance. The results indicate that market orientation has significant relationships with innovation characteristics such as innovation-marketing fit, product advantage, and interfunctional teamwork but not with product newness and innovation-technology fit. Further, after controlling for the effect of these innovation characteristics, we found that in both the product and service innovation samples, market orientation makes a significant contribution to the innovation projects impact performance, as measured by its intermediate benefits for the firm. However, it has little effect on its market success, as measured by sales and profit performance. Surprisingly, the results do not confirm our hypothesis that market orientation will have a stronger impact on service innovation performance than on product innovation performance. Research and managerial implications of these findings are presented.

An exploratory analysis of the impact of market orientation on new product performance a contingency approach

Abstract For many firms, emphasizing the importance of market orientation has taken on a mantra-like quality. Mission statements and memos, policies, and procedures all highlight the importance of staying in touch with the customer. It is also widely assumed that the relationship between market orientation and new product performance depends on environmental conditions and product characteristics. To date, however, little empirical evidence has been presented to support the assumption that market orientation influences new product performance. Kwaku Atuahene-Gima addresses this research need in a study of 275 Australian firms. In addition to exploring the relationship between market orientation and new product development activities and performance, his study examines the effects of environmental conditions and product characteristics. Specifically, the study investigates whether the relationship between market orientation and new product performance depends on the degree of product newness to customers and the firm; the intensity of market competition and the hostility of the industry environment; and the stage of the product life cycle at which the new product was introduced. The survey results provide strong support for the basic proposition that market orientation influences new product performance and development activities. The results show a strong positive relationship between market orientation and a new products market performance. Market orientation is also shown to have a strong positive effect on proficiency of predevelopment activity, proficiency of launch activity, service quality, product advantage, marketing synergy, and teamwork. Although market orientation is generally found to be an important factor in the success of new products, its influence varies depending on the type of new product—that is, radical versus incremental. Market orientation appears to have greater influence on new product performance when the product represents an incremental change to both the customers and the firm. However, this does not mean that a market-oriented approach is unnecessary in the development of radically new products. Market orientation also has a greater effect when the perceived intensity of market competition and industry hostility are high, and during the early stage of the product life cycle. Because market competition and industry hostility typically intensify as the product life cycle progresses, these findings suggest that the effects of market orientation are pervasive. In other words, managers should not limit their expectations of market orientation to specific projects or specific stages of the development process and product life cycle.

When Does Trust Matter? Antecedents and Contingent Effects of Supervisee Trust on Performance in Selling New Products in China and the United States

There is a strong normative bias toward the inherent value of trust among both marketing researchers and practitioners. Yet there is little empirical evidence of a positive impact of trust on performance. Indeed, scholars suggest that the sources of trust may provide opportunities for its abuse. Following this line of thinking, the authors investigate the dual roles of sales controls and supervisor behaviors as antecedents of salespeoples belief in the benevolence of the supervisor (i.e., supervisee trust). The authors then examine these antecedents as moderators of the relationship between supervisee trust and sales performance in the context of selling new products. Data on field salespeople from high-technology firms in China and the United States suggest that factors such as supervisor accessibility engender supervisee trust but do not necessarily enhance its impact on sales performance. In the Chinese sample, supervisee trust enhances sales performance when output control is adopted, when the supervisor has a higher level of achievement orientation style, and when the salesperson has higher role ambiguity. Furthermore, the results suggest that the supervisee trust–sales performance relationship is negative when supervisor accessibility is high. With the exception of achievement orientation and supervisor accessibility, these effects are negative or nonexistent in the U.S. sample. The authors discuss theoretical and practical implications of the studys findings.

Exploratory and Exploitative Learning in New Product Development: A Social Capital Perspective on New Technology Ventures in China

The authors examine the differential effects of the structural, relational, and cognitive dimensions of social capital on exploratory and exploitative learning in new product development in new ventures in China. In addition to investigating the potential nonlinear relationships between exploratory and exploitative learning and new product performance, the authors examine the relationship between the interaction of the two types of learning and new product performance. The findings suggest that different dimensions of social capital are indeed significantly related to the level of exploratory and exploitative learning. The results also support the argument that firms need a balance of exploratory and exploitative learning to enhance performance. The findings draw the attention of managers from multinational firms operating in China to the important role of social capital in enhancing new product performance.

An Exploratory Analysis of the Impact of Market Orientation on New Product Performance

For many firms, emphasizing the importance of market orientation has taken on a mantra-like quality. Mission statements and memos, policies, and procedures all highlight the importance of staying in touch with the customer. It is also widely assumed that the relationship between market orientation and new product performance depends on environmental conditions and product characteristics. To date, however, little empirical evidence has been presented to support the assumption that market orientation influences new product performance. Kwaku Atuahene-Gima addresses this research need in a study of 275 Australian firms. In addition to exploring the relationship between market orientation and new product development activities and performance, his study examines the effects of environmental conditions and product characteristics. Specifically, the study investigates whether the relationship between market orientation and new product performance depends on the degree of product newness to customers and the firm; the intensity of market competition and the hostility of the industry environment; and the stage of the product life cycle at which the new product was introduced. The survey results provide strong support for the basic proposition that market orientation influences new product performance and development activities. The results show a strong positive relationship between market orientation and a new products market performance. Market orientation is also shown to have a strong positive effect on proficiency of predevelopment activity, proficiency of launch activity, service quality, product advantage, marketing synergy, and teamwork. Although market orientation is generally found to be an important factor in the success of new products, its influence varies depending on the type of new product—that is, radical versus incremental. Market orientation appears to have greater influence on new product performance when the product represents an incremental change to both the customers and the firm. However, this does not mean that a market-oriented approach is unnecessary in the development of radically hew products. Market orientation also has a greater effect when the perceived intensity of market competition and industry hostility are high, and during the early stage of the product life cycle. Because market competition and industry hostility typically intensify as the product life cycle progresses, these findings suggest that the effects of market orientation are pervasive. In other words, managers should not limit their expectations of market orientation to specific projects or specific stages of the development process and product life cycle.

STRATEGIC DECISION COMPREHENSIVENESS AND NEW PRODUCT DEVELOPMENT OUTCOMES IN NEW TECHNOLOGY VENTURES

With a sample of new technology ventures in China, we investigated the contingent effect of strategic decision comprehensiveness on new product performance and product quality. The relationship between strategic decision comprehensiveness and new product performance was negatively moderated by technology uncertainty but positively moderated by demand uncertainty. The effect of decision comprehensiveness on new product quality was positively moderated by demand uncertainty but unaffected by technology uncertainty. The comprehensiveness-performance link emerges as more complex than previous research has shown. A key distinguishing characteristic of the strategic management discipline is the emphasis it places on firms’ competitive environments. Firms are viewed as information-processing or interpretation systems that scan and collect data from their environments, interpret the data, and then learn by acting upon the interpretation (Daft & Weick, 1984). This notion is central to the contingency perspective that underlies information processing theory. According to the contingency perspective, the fit between the information-processing requirements facing a firm and the information-processing capac

The Effects of Centrifugal and Centripetal Forces on Product Development Speed and Quality: How Does Problem Solving Matter?

Data from high-technology firms in Hong Kong were used to investigate whether the outcomes of problem-solving processes (solutions found, problem-solving speed, and solution quality) mediated the e...

Antecedents and Outcomes of Marketing Strategy Comprehensiveness

Comprehensiveness has long been recognized as a key feature of marketing strategy decision making. However, few studies have examined its antecedents and the conditions under which it influences performance. This study attempts to contribute to a better understanding of marketing strategy by investigating project-level antecedents and outcomes of marketing strategy comprehensiveness (MSC). Drawing on contingency and institutional theories perspectives, the authors develop and test the effects of output and process rewards, task conflict, and project members’ intra- and extraindustry relationships on MSC. They find that whereas process reward and extraindustry relationships are positively related to MSC, task conflict (when combined with conflict avoidance) hinders its development. Furthermore, the results indicate that MSC has a more positive effect on performance when implementation speed is higher. Finally, the authors discover that technology and market uncertainties differentially moderate the relationship between MSC and performance; the former has a positive effect, and the latter has a negative effect. The authors also discuss the theoretical and practical implications of their findings.