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How Does Technological Regime Affect Performance of Technology Development Projects?
Author(s) -
Song Michael,
Hooshangi Soheil,
Zhao Y. Lisa,
Halman Johannes I.M.
Publication year - 2014
Publication title -
journal of product innovation management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.646
H-Index - 144
eISSN - 1540-5885
pISSN - 0737-6782
DOI - 10.1111/jpim.12192
Subject(s) - closeness , technological change , business , industrial organization , profit (economics) , quality (philosophy) , marketing , new product development , knowledge base , knowledge management , economics , microeconomics , computer science , mathematics , mathematical analysis , philosophy , epistemology , world wide web , macroeconomics
In this study, we examine how technological regime affects the performance of technology development projects (i.e., project quality, sales, and profit). Technological regime is defined as the set of attributes of a technological environment where the innovative activities of firms take place. Technological opportunity, appropriability of innovations, cumulativeness of knowledge and capabilities, and closeness of knowledge base to basic sciences (versus applied sciences) are attributes of technological regime. Using data from 381 firms across five industries, we show that high levels of technological opportunity, appropriability, and closeness of knowledge base to basic sciences are associated with higher project performance. Cumulativeness is associated with higher project quality, but not higher sales and profit. We also show that the effect of technological opportunity on project performance is moderated by two other determinants of technological regime: cumulativeness and nature of knowledge base. We find that cumulativeness has a negative moderating effect on the positive relationship between technological opportunity and project performance, while closeness of knowledge base to basic sciences positively moderates the effect of technological opportunity on project performance. We discuss the implications of our findings for new product development research and practice.