Unraveling the underlying mechanisms of new product development in high-technology emerging-market multinationals

Abstract

Purpose Although extant research has provided vast knowledge on the determinants of new product development (NPD) success, prior work is generally bounded to the framework of developed economies. Thus, research dealing with NPD, specifically in the emerging-market context, is still in its infancy. The purpose of this paper is to advance our current understanding on the determinants of NPD performance of emerging-market multinationals (EMMs) by exploring how international knowledge exploration plays a part in the international NPD performance of these firms. Furthermore, it examines how such contribution is contingent on EMMs' international networking effectiveness and environmental dynamism that draws on the "fit" concept. Design/methodology/approach To empirically test the theoretical model, the authors draw on a sample of 179 high-technology firms from China, which is the world's largest emerging market. Findings Results strongly support the hypothesis that international knowledge exploration positively affects international NPD performance. The analyses of moderating effects indicate that EMMs that are more effective in networking with global network partners and experience a low level of environmental dynamism are likely to achieve better financial performance in NPD. Originality/value This study advances our understanding on how and under what conditions EMMs can overcome their knowledge-disadvantaged position and achieve NPD success in global markets by highlighting the important role of international knowledge exploration and possible contingencies. Thus, it contributes to the literature on EMM and innovation.