Department of Marketing
Leveraging internal resources and external business networks for new product success: A dynamic capabilities perspective
Internal resources such as technological and human capital, together with a firm's business network, are vital sources of knowledge for new product development. Previous studies largely assume that a firm's internal resources and its external resources embedded in a business network are complementary in new product development. This study draws on the dynamic capabilities perspective to take the existing literature one step further. Our hypotheses were tested using a sample of 130 Chinese manufacturing firms in high-technology industries. Interestingly, the findings reveal a more complex picture of resource interplay between internal resources and external resources embedded in a firm's business network. More specifically, the findings show that a firm's power in its business network influences the effect of its internal resources on its ability to sense and seize opportunities, a vital dynamic capability. More importantly, the findings suggest that such dynamic capability plays a pivotal role in translating the benefits of resource-interplay into new product success.
New product success, Dynamic capabilities, Network power, Technological capital, Human capital
Source Publication Title
Industrial Marketing Management
© 2016 Elsevier Inc. All rights reserved.
The work described in this study was supported by a grant (HKBU 250111) from the Research Grants Council of the Hong Kong Special Administrative Region. The authors would like to thank four anonymous reviewers and editor for their constructive comments, and Mr. Bill Purves and Armstrong-Hilton Limited for their editing services.
Link to Publisher's Edition
Zhang, Junfeng, and Wei-ping Wu. "Leveraging internal resources and external business networks for new product success: A dynamic capabilities perspective." Industrial Marketing Management 61 (2017): 170-181.