New Product Development Process Execution, Integration Mechanisms, Capabilities and Outcomes: Evidence from Chinese High‐Technology Ventures

Abstract

AbstractThis study examines new product development (NPD) processes in high‐technology new product ventures in the emerging market context. Drawing upon the knowledge‐based view and the capability‐based view, we propose a model that characterizes relationships between NPD process execution stages and product competitive advantage, and accounts for the moderating effects of NPD integration mechanisms on these relationships. Our model also explains how pricing capabilities can become a liability that undermines how product advantage impacts new product performance. We test this framework within an emerging market context that has been notably absent from the literature. Our data are generated from 187 new product projects and a follow‐up of 83 projects, from Chinese high‐technology ventures. We identify important theoretical interdependencies within our structural model results. Specifically, marketing–technical integration positively moderates the relationship between product development and testing capability and commercialization capability, while new product implementation capability positively moderates the relationship of commercialization capability and product competitive advantage. Yet, penetration pricing capability negatively moderates the link between product competitive advantage and new product performance.