Abstract

In high-tech companies marketing often has to strive for gaining influence in the new product development (NPD) process, and uses political strategies to supplement its low formal power. This Study examined the antecedents and outcomes of marketing's use of upward appeal and coalition building influence strategies in NPD, in Chinese and Australian high-tech companies. We proposed that marketing's use of both strategies is related to power sources (i.e., R&D department's power, marketing's information power and personal stake in the MID Outcomes) and NPD context characteristics (i.e., formalization of NPD activity, and R&D-marketing interaction). Results show that both power sources and NPD context are related to the use of lateral influence strategies by marketing participants in NPD, with notable differences in potency and direction between China and Australia. For example, higher R&D-marketing interaction increases the use of lateral influence strategies in Australia but decreases it in China. Oil the contrary, lateral influence strategies produce similar effects in the two cultural settings: while coalition building increases NPD team comprehension of marketing Issues in high-tech firms, upward appeal appears to hinder it, especially in the Chinese collectivistic context. We conclude with implications for future research and practice.

Keyword

Abstract

There is consensus in the marketing literature that market knowledge and cross-functional collaboration are two fundamental resources for successful product innovation. However, few studies examine the dimensions or characteristics of market knowledge and how and why these resources influence product innovation performance. Drawing on contingency theory and the knowledge-based view of the firm, the authors argue that knowledge integration mechanisms may account for the effects of market knowledge dimensions (i.e., breadth, depth, tacitness, and specificity) and cross-functional collaboration on product innovation performance. They find that market knowledge specificity and cross-functional collaboration affect product innovation performance through knowledge integration mechanisms. In contrast, whereas the effect of market knowledge depth is partially mediated, market knowledge breadth has a direct, unmediated effect on product innovation performance. A test of an alternative moderating perspective shows that the effects of market knowledge depth and cross-functional collaboration on product innovation are negatively moderated by knowledge integration mechanisms. By showing the differential effects of market knowledge dimensions on product innovation performance, the authors provide a more refined understanding of the interplay among market knowledge, its integration, and the firm's performance in product innovation. The authors also conclude that by overlooking the role of knowledge integration mechanisms, previous research may have provided an overly optimistic view of the value of cross-functional collaboration in product innovation.

Keyword

China ;  cross-functional collaboration ;  knowledge integration mechanisms ;  market knowledge ;  product innovation

Abstract

This study extends research on entrepreneurial behavior by investigating the relationship between the marketing strategy innovativeness (MSI) and new product performance in technology-based new ventures in China. Specifically, premised on contingent resource-based view we argue that MSI is a firm capability that must be bundled with external managerial relationships and be deployed in the appropriate environment to ensure its success. We found that the team's extra industry relationships and market dynamism enhanced the impact of MSI on new product performance. In contrast, top management team's intraindustry relationships, financial relationships, and technology dynamism hindered the impact of MSI on new product performance. (c) 2006 Elsevier Inc. All rights reserved.

Keyword

ANTECEDENTS ;  China ;  COMPETITIVE ADVANTAGE ;  CONSEQUENCES ;  DYNAMIC CAPABILITIES ;  FIRM PERFORMANCE ;  marketing strategy ;  new ventures ;  ORGANIZATIONS ;  ORIENTATION ;  performance ;  product development ;  RESOURCE-BASED VIEW ;  strategic decision-making ;  strategy innovativeness ;  TIES ;  UNCERTAINTY