Technology‐Based New Product Development Partnerships*

Abstract

Hypotheses were developed to capture the dynamic capabilities that result from interfirm partnerships during the joint new product development (NPD) process—the ability to build, integrate, and reconfigure existing resources to adapt to rapidly changing environments. These capabilities, in turn, were proposed to have a positive impact on NPD performance outcomes: (a) proportion of new product success and (b) superior new product commercialization. In contexts where the locus of innovation is rapidly changing, the impact of interfirm NPD dynamic capabilities was hypothesized to be diminished in high‐technology contexts, especially for buyers (original equipment manufacturers) and to a lesser extent for suppliers. Still, technology‐based interfirm NPD partnerships were predicted to ultimately outperform low‐technology ones in both NPD performance outcomes. Finally, information technology (IT) support for NPD was hypothesized to influence the interfirm NPD partnership's dynamic capabilities. Using survey data from 72 auto company managers and their suppliers, the proposed model in which IT support for NPD influences the success of interfirm NPD partnerships through the mediating role of interfirm NPD partnership dynamic capabilities in high‐ and low‐technology contexts was generally supported. The results shed light on the nature of technology‐based interfirm NPD partnerships and have implications for their success. Theoretical and managerial implications are discussed.

Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance

“…Figuring out how to increase value from the use of the assets the enterprise owns involves knowing the fine-grained structure of the firm's asset base, and filling in the gaps necessary to provide superior customer solutions. Gap filling may involve building new assets, or acquisitions and strategic partnerships (Ettlie and Pavlou, 2006).…”

Digital Business Strategy: Toward a Next Generation of Insights

“…Thus, the post-dotcom decade has seen firms-both established and startups-taking advantage of lower price/performance levels of computing (hardware and software) as well as global connectivity through standard protocols (e.g., Internet and mobile web) to adapt their business infrastructure to the new digital era. These digital technologies are fundamentally reshaping traditional business strategy as modular, distributed, crossfunctional, and global business processes that enable work to be carried out across boundaries of time, distance, and function (e.g., Banker et al 2006;Ettlie and Pavlou 2006;Kohli and Grover 2008;Rai et al 2012;Sambamurthy et al 2003;Straub and Watson 2001;Subramaniam and Venkatraman 2001;Tanriverdi and Venkatraman 2005;Wheeler 2002). Digital technologies also enable different forms of dynamic capabilities suitable for turbulent environments El Sawy 2006, 2010).…”

Supply chain of innovation and new product development

“…For example, Twigg (1998) examines the relationships between a vehicle manufacturer and six key suppliers which contribute to the final design of products; the author terms 'design chain' the interaction of design information between each supplier and customer. In fact, several collaboration modes with suppliers and customers in NPD have been analyzed: supplier innovation generation (Jean et al, 2012); early supplier involvement (Koufteros et al, 2005;Johnsen, 2009); supplier involvement and investment (Song et al, 2011); supplier integration (Petersen et al, 2005;Ettlie and Pavlou, 2006;Swink et al, 2007); supplier development (Krause et al, 2007); and customer involvement (Flynn et al, 2010).…”