Thinking Outside the Box: An Absorptive Capacity Approach to the Product Development Process

In high technology markets, the development of new products has received widespread interest among marketing and management scholars. Popular wisdom suggests that a consumer driven approach to the product development process is key to a firm’s competitive success. Organizational learning research however has argued that a narrow focus on customer needs restricts a firm’s ability to search for unconventional product market opportunities. Hence, a greater openness to external ideas that extend beyond the interests of the consumer has been called for. In drawing on concepts of absorptive capacity and strategic alliances, this study develops a conceptual model to examine a firm’s product development process. This conceptual model is examined in the biotechnology industry. Regression analyses show a firm’s absorptive capacity exhibits a positive yet diminishing effect on a firm’s ability to introduce products to the market. Findings also indicate the type of knowledge possessed by a firm yields a distinct moderating effect to the product benefits of alliances.


Issue Date:
Sep 01 2011
Publication Type:
Journal Article
DOI and Other Identifiers:
(ISSN #: 1559-2448) (Other)
PURL Identifier:
http://purl.umn.edu/114704
Published in:
International Food and Agribusiness Management Review, Volume 14, Issue 3
Page range:
67-94
Total Pages:
28
JEL Codes:
M11; M310; M312
Note:
The IFAMR is the Official Journal of the International Food and Agribusiness Management Association: www.ifama.org
Series Statement:
Volume 14
Issue 3




 Record created 2017-04-01, last modified 2017-08-26

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