Viable strategy configurations and new product development capability and performance: Evidence from Thailand

Abstract

Purpose

The purpose of this paper is to identify firm groups pursuing different configurations of customer-, entrepreneurial-, and information technology (IT) orientation and to compare their new product development (NPD) capability and NPD performance.

Design/methodology/approach

Hierarchical cluster analysis was used on the sample of 156 firms on the basis of their mix of customer-, entrepreneurial-, and IT- orientation. Then, analysis of variance was used to compare the groups’ NPD capability (NPDCAP), NPD process efficiency (NPDPROC), new product effectiveness (NPEFF), and new product financial performance (NPPERF).

Findings

Of the seven strategy configurations posited, four emerge and two unexpected configurations are revealed. Overall, firms simultaneously pursuing multiple strategic orientations have higher NPDCAP, NPEFF, and NPPERF. Interestingly, all six strategy groups have equally low levels of NPDPROC.

Practical implications

To enhance NPDCAP and NPD performance, managers should consider more complex strategy configurations that act in complementary ways, in particular, customer-orientation complemented by either entrepreneurial- and/or IT-orientation. Moreover, more attention is needed to improving NPDPROC, as achieving gains in this area would contribute positively to firm performance.

Originality/value

This study presents initial evidence that, at least for firms in Thailand, resources must be configured by pursuing several strategic orientations simultaneously to enhance their dynamic capabilities in NPD, a strategic issue that has not been given much attention in previous literature.

Citation

Racela, O.C. (2015), "Viable strategy configurations and new product development capability and performance: Evidence from Thailand", Asia Pacific Journal of Marketing and Logistics, Vol. 27 No. 2, pp. 249-266. https://doi.org/10.1108/APJML-05-2014-0069