Abstract
PurposeThe purpose of this paper is to examine the impact of governance modes (trust and unilateral control) on new product development (NPD) performance and the mediating role of tie strength.Design/methodology/approachSurvey research was conducted to collect data from 112 NPD relationships and structural equation modeling was conducted to test the hypotheses.FindingsThe results suggest that the trust and tie strength are positively related, while unilateral control and tie strength are negatively related. On the other hand, tie strength is positively related to NPD performance. Results also show that the impact of trust and unilateral control on NPD performance are mediated by the tie strength.Originality/valueThis study enhances the understanding of NPD relationships by examining the key modes of governance through which tie strength and NPD performance are influenced.
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