Technology-based new product development partnerships

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Title: Technology-based new product development partnerships
Author: Ettlie, John; Pavlou, Paul
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 hanging, 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.
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Date: 2006-05

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