Abstract
This paper examines the impact of governance modes (norm of flexibility, trust, and monitoring) on NPD cycle time and the mediating role of relational ties strength. Our sample consists of 112 firms that were involved in NPD relationships. The results of structural equation modelling suggest that the trust and norm of flexibility are positively related to strength of relational ties while monitoring and strength of relational ties are not significantly related. On the other hand, relational ties strength is positively related to NPD cycle time. Results also show that the impact of trust and norm of flexibility on NPD cycle time are mediated by the strength of relational ties. Finally, implications for research, theory, and practice are discussed.
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