The Relationship Between Unlearning and Innovation Ambidexterity with the Performance of New Product Development Teams

Abstract

Previous research has suggested that unlearning is not linked to performance improvements in a team setting. Further, unlearning may have deleterious effects on performance outcomes because when it happens, teams are likely to lose the way they perform tasks and the reasons for their operational existence. In contrast, this study predicts that teams can conduct exploitative and exploratory activities in a balanced manner predicated on unlearning practices to improve new product development (NPD) performance. We hypothesized that while unlearning allows NPD teams to balance exploitative and exploratory learning activities, simultaneous yet balanced exploitation and exploration at high levels, namely innovation ambidexterity, links unlearning practices to NPD performance. This occurs by providing task-relevant knowledge for the replacement of outdated routines and beliefs during NPD processes. Data were collected from 198 NPD teams (i.e., 464 individual participants). The examination of ordinary least squares regression-based path analyses revealed that innovation ambidexterity mediates the relationship of unlearning with NPD performance, operationalized as product development speed, cost, and product success. Overall, this study shows that the unlearning-performance relationship occurs through simultaneous exploitative and exploratory learning activities in a balanced manner.