Examining Flows of Design Information in New Product Development: The Moderating Role of Creativity

Abstract

New Product Development (NPD) is frequently described as a sequence of information processing activities that leads to an ability to apply and leverage knowledge for competitive advantage. NPD is also increasingly subject to dynamic forces, such as the rapid diffusion of technology and growing ease of communication across distances. Under these fast-cylce-time conditions, having the right knowledge at the right time and in the right format creates important intangible assets. The knowledge-based view of the firm considers knowledge as the most significant resource of the modern firm. Its proponents argue that because knowledge-based resources are inimitable and socially complex, heterogeneous capabilities are critical sources of competitive advantage. This paper applies the knowledge-based view of the firm to new product development and reviews the areas of organizational learning, knowledge management, information use and product innovation. It is argued that we can understand the use of knowledge assets in NPD through three steps: acquisition (learning), diffusion (knowledge management) and conversion (innovation). A framework for these relationships is proposed and implications resulting from this literature review and framework are presented.