Performance implications of knowledge inputs in inter-organisational new product development projects: the moderating roles of technology interdependence

Abstract

Successful inter-organisational new product development (NPD) is a key source of competitive advantage, yet many NPD projects are still failing. To generate new insights on the phenomenon, we examine the performance implications of knowledge inputs among collaborating organisations, both in terms of external input ratio and input concentration. We test a set of hypotheses using multi-industry primary and secondary data on 210 inter-organisational NPD projects. Results support our hypotheses about the negative effect of input concentration on design quality, which in turn is positively associated with product market performance. Although we surprisingly find a negative linear effect of external input ratio on design quality, our post-hoc analysis confirms the relationship to be an inverse U-shaped relationship. We also find support for the roles of technology interdependence in moderating the performance implications of external input ratio and input concentration. By clarifying how knowledge inputs affect project outcomes under different levels of technology interdependence, the study provides managerial implications regarding how to select innovation partners in order to create a knowledge portfolio that best improves NPD project performance.