Fit Among Business Strategy, Strategy Formality and Dynamic Capability Development in New Product Development

European Management Review, Vol: 13, 107-123, 2016

17 Pages Posted: 19 Mar 2016 Last revised: 14 Oct 2017

Date Written: March 17, 2016

Abstract

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: Australia, Denmark, Finland, Norway, the Netherlands, Slovakia, Portugal, Spain, and Turkey. 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; this result is unexpected for defenders. 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.

Keywords: NPD strategy formality; dynamic capabilities; business strategy; NPD performance

Suggested Citation

Gumusluoglu, Lale and Acur, Nuran, Fit Among Business Strategy, Strategy Formality and Dynamic Capability Development in New Product Development (March 17, 2016). European Management Review, Vol: 13, 107-123, 2016, Available at SSRN: https://ssrn.com/abstract=2749275

Lale Gumusluoglu (Contact Author)

Bilkent University ( email )

Ankara, 06800
Turkey

Nuran Acur

Ozyegin University ( email )

Kusbakisi Cd. No: 2
Altunizade, Uskudar
Istanbul, 34662
Turkey

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