Effects of relational proclivity and marketing intelligence on new product development

Abstract

Purpose: – A number of studies in the marketing and strategy literature show that a firm's resource endowment is a major driver in the formation of advantage-generating capabilities. Some researchers have suggested, however, that capabilities are path dependent and that a firm's behavioral predispositions and proclivities should be viewed as antecedents to capability formation. The purpose of this paper is to examine how a firm's behavioral tendencies, along with its existing business resources, contribute to the formation of new product development (NPD) capability. Design/methodology/approach: – Hypotheses are tested by using survey data from more than 150 US-based firms. Structural equation modeling was used to evaluate the proposed model and analyze hypothesized relationships. Findings: – Results of the paper suggest that a firm's competency in marketing intelligence and its tendency to engage in partner-style relationships have both direct and interactive effects on NPD capability. This capability is further shown to positively relate to organizational performance, and this relationship is moderated by technological uncertainty. Practical implications: – The paper underscores that certain proclivities provide access to resources that reside outside a firm's boundaries and highlight the importance of considering firm proclivities in capabilities-based research. Originality/value: – To date, little research has examined how NPD capability is influenced by a firm's internal marketing intelligence capability along with its tendency to seek external market knowledge. The examination of the direct and interactive effects of these constructs on NPD capability is novel and the findings highlight implications for scholars and practitioners alike.