Global new product development: moderating role of national culture on the link between buyer–seller interactions and innovation outcomes

Abstract

The emergence of varying perspectives on globalization has meant that buyer-seller interactions in the context of new product development (NPD) are becoming culturally more nuanced. Important research findings exist on the factors influencing the various stages of the NPD process, the role of buyer-seller interactions on NPD, and the role of national culture on NPD. What happens when global NPD occurs between buyers and sellers in different cultures? Does the type of interaction and the stage of NPD matter? How can buyers leverage NPD success globally using the dimensions of national culture? Extant research does not offer a conceptual framework to examine the moderating role of national culture differences on the link between buyer-seller interactions and different stages of NPD. Such a framework is important to expand our knowledge of the NPD process in the increasingly global environment and to offer meaningful guidance to executives when managing the NPD process cross culturally. Our research sheds light on these important questions at the intersection of NPD, national culture, and buyer-seller interactions. In doing so, we differentiate between the initiation and implementation stages of NPD and distinguish between variety and intensity of interactions. We then consider the moderating role of six national cultural dimensions (individualism, power distance, masculinity, uncertainty avoidance, long-term orientation, and indulgence). Important implications of our work for research and managerial practice are highlighted.