New Product Performance
and the benefit of periodically changing the relative influence balance between marketing and R&D
Article
The purpose of this paper is to study the relationship between changes in relative influence between marketing and R&D and new product performance (NPP). The aim is to theorize and test whether relative influence changes are beneficial for NPP.
Design/methodology/approach
An international survey was sent out to pharmaceutical companies worldwide, resulting in 106 usable questionnaires from knowledgeable senior managers. A model is estimated that relates recent and historic changes in relative influence to NPP.
Findings
There is a positive relationship between recent relative influence changes and subsequent NPP. Moreover, this paper finds that having a history of adaptation with respect to relative influence can serve organizations to build up capabilities that, in turn, strengthen the positive effects of recent relative influence changes on NPP. Finally, the paper shows that relative influence changes and integration between marketing and R&D positively affect NPP jointly.
Originality/value
A core finding, that is quite counterintuitive, is that instability with respect to relative influence changes can help organizations to become more competitive in new product development.
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