In this article, the authors develop and test hypotheses relating the four knowledge creation modes of socialization, externalization, combination, and internalization as performed during the concept and the development phases of new product development projects to new product success. Using data from 94 new product development projects, they find that socialization during the concept phase and combination during the development phase are positively related to new product success but that externalization during the concept phase as well as socialization and internalization during the development phase are negatively related to new product success. Implications for theory and practice are discussed.
In this paper, we address the pre-project phase of idea generation in the product innovation process, where the effective generation of new product ideas still remains an issue of high relevance for both management scholars and practitioners. We relate Nonaka and colleagues’ four knowledge creation modes of socialization, externalization, combination, and internalization to the novelty of product ideas generated. Taking a behavioral perspective on the four modes, we posit positive relationships between socialization as well as internalization and the novelty of product ideas, whereas we postulate negative relationships for externalization as well as combination. Using data from multiple respondents in 33 companies, our results confirm the proposed linkages.
Organisational learning (OL) that enhances efficiency and the continuous improvement of processes is a key objective of lean product development and has become an important principle of new product development (NPD). Therefore, it is critical for an organisation to capture individuals’ and groups’ knowledge and learning about processes, institutionalise it, and deploy it organisation-wide. Since OL is more likely to occur if it is supported systematically, NPD scholars and practitioners recognise the importance of investigating facilitators’ effect on OL. However, there is no shared understanding of OL among existing studies. This disparity makes it hard to assess, compare, and integrate prior findings into studies. Our article addresses this gap. We investigate how value stream mapping (VSM) and its implementation in NPD affect OL in development processes. Therefore, we operationalise OL on the basis of Crossan et al .'s 4I framework, which is comprehensive and widely recognised (Crossan, M., Lane, H. and White, R., 1999. An organizational learning framework: from intuition to institution. The Academy of Management Review, 24(3), 522–537). We analysed the approach to VSM and its implementation in four longitudinal, comparative case studies in the German-speaking car supplier industry. Using the 4I framework, we captured VSM's effects on the various OL dimensions. We provide valuable insights for R&D managers who seek to improve their processes and want to implement VSM.
This paper investigates whether the valuation effect of corporate governance depends on the degree of competition in the companies’ product markets in a large international sample covering 14 countries from the European Union (EU). Besides providing external validity of previous US-centred studies, this paper uses more comprehensive and reliable measures of both product market competition and corporate governance. Consistent with the hypothesis that product market competition acts as a substitute for corporate governance as competitive pressure imposes discipline on managers to maximise firm value, our results show that corporate governance significantly increases firm value in non-competitive industries only. When investigating the channels through which firm value may be increased, we find that good governance for firms in non-competitive industries leads them to have more capital expenditures, spend less on acquisitions, and be less likely to diversify. Our results are robust to a large number of robustness checks including the use of alternative measures of competition and governance, as well as using alternative regression specifications.
