The bidirectional complementarity between market orientation and launch proficiency affecting new product performance

Abstract

Purpose

Based on the resource-based view and dynamic capabilities theory, this study aims to examine the complementarity between market orientations and launch proficiency as a driver of new product performance.

Design/methodology/approach

In this research, an on-site survey of Iranian, research and development- intensive, manufacturing firms was carried out to examine the proposed hypotheses. Based on the 179 workable survey responses, a covariance-based structural equation modeling was applied to verify the proposed theoretical model.

Findings

The empirical findings reveal that the effects of market orientation or launch proficiency alone are not significant while the complementarity between them significantly influences new product performance. These research outcomes suggest that this complementarity leads to a bidirectional co-specialization relationship in firms, promoting both market intelligence generation processes and product-launch capabilities, and therefore resulting in superior new product performance.

Originality/value

The current characterization of the resource-based theory signifies that strategic resources merely have potential value and actualizing this value needs complementary organizational capabilities. Furthermore, the literature notably lacks empirical findings supporting these complementarities. Therefore, the findings concerning the bidirectional co-specialization between market orientation and launch proficiency not only provide empirical support for the dynamic capabilities theory but also address recent research calls to identify and calibrate the importance of dynamic capabilities for leveraging market orientation on new product performance.

Citation

Fakhreddin, F., Foroudi, P. and Rasouli Ghahroudi, M. (2021), "The bidirectional complementarity between market orientation and launch proficiency affecting new product performance", Journal of Product & Brand Management, Vol. 30 No. 6, pp. 916-936. https://doi.org/10.1108/JPBM-03-2020-2824