Abstract
More and more well-documented failure of established companies which could not respond to rapid market changes, such as Kodak and Nokia, demonstrate the importance of transferring marketing information into real firm performance. While marketing strategy and management literature has long advocated the direct impact of strong firm market orientation (MO) on new product development (NPD) performance, limited research has discussed the mediating mechanism of this MO-NPD performance relationship. Using the traditional source–position–performance (SPP) framework, this study focuses on the innovation ambidexterity perspective to investigate the mediating mechanism between MO and NPD performance. Then, this study proposed a conceptual framework and propositions to examine the MO - NPD performance relationship further. Theoretical and practical implications of the findings are also discussed.
Highlights
William Bernbach, the co-founder of Doyle Dane Bernbach, said, “An idea can turn to dust or magic, depending on the talent that rubs against it.” The same is true of the innovation field
The case of Nokia and previous literature raised an exciting and imperative research question to answer: Engaging in exploring and exploiting activities, how can firms avoid the new product paradox to build reasonable and sensitive paths to improve innovation performance?. To fill these gaps in the literature, we focus the mechanism between market orientation (MO) on new product development (NPD) performance relationship from the traditional source– position–performance (SPP) framework (Day and Wensley, 1988)
We propose that the SPP frameworks help the company gain a competitive advantage by re-examining the black-box from the relationship between MO and NPD performance
Summary
William Bernbach, the co-founder of Doyle Dane Bernbach (one of the world’s largest advertising holding companies), said, “An idea can turn to dust or magic, depending on the talent that rubs against it.” The same is true of the innovation field. We extend the prior knowledge on the traditional market orientation and generate a conceptual framework to explore the relationship between responsive and proactive MO and NPD performance, mediated by innovation ambidexterity. The basic ideas of the SPP model come out the sequential determinism of competitive advantage: the source → position → performance, which states that the source of firm or industry determines the position of firms (including their room for product differentiation or lowest delivered cost position), in turn, determines their performance (including customer satisfaction, loyalty, market share, and profitability) (Day and Wensley, 1988) This framework provides a useful perspective for examining the relationship between MO and NPD performance. Based on the SPP framework, we introduce the related constructs and develop the propositions in our conceptual model
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