Abstract
This study focuses on how information acquisition and communication influence new product development through organizational capability. Our empirical results, based on sample data from 607 Chinese firms, show that external information acquisition has a positive effect on proactiveness capability and a negative effect on operation capability. In contrast, however, we find that internal information communication has a negative effect on proactiveness capability and a positive effect on operation capability. Finally, we find that proactiveness capability has a significant positive impact on operational capability and NPD. This research extends the literature on information communication, organizational capability, and NPD in general.
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