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Fit Among Business Strategy, Strategy Formality, and Dynamic Capability Development in New Product Development
Author(s) -
Gumusluoglu Lale,
Acur Nuran
Publication year - 2016
Publication title -
european management review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.784
H-Index - 32
eISSN - 1740-4762
pISSN - 1740-4754
DOI - 10.1111/emre.12070
Subject(s) - formality , dynamic capabilities , new product development , process management , strategic management , product (mathematics) , business , sample (material) , management strategy , business development , strategy implementation , computer science , operations management , marketing , business administration , engineering , mathematics , linguistics , philosophy , chemistry , geometry , chromatography
Taking new product development ( NPD ) as the unit of analysis, this study, based on strategic fit approach, investigates the effects of NPD strategy formality and dynamic capabilities (sensing, seizing, and reconfiguring) on NPD performance for different business strategy types (prospectors, analyzers, defenders). The sample of the study includes 203 companies from nine countries: A ustralia, D enmark, F inland, N orway, the N etherlands, S lovakia, P ortugal, S pain, and T urkey. The study finds that a formal NPD strategy is an important driver of NPD performance for all companies regardless of the strategy pursued. Of the dynamic capabilities, sensing capabilities have significant performance effects for all strategy types. Seizing capabilities have stronger effect on NPD performance for prospectors and analyzers, than for defenders while reconfiguring capabilities is a driver of performance only for defenders. Furthermore, dynamic capabilities explain NPD performance above and beyond strategizing, irrespective of the strategy pursued.