The impact of ambidextrous market learning and product innovativeness on product advantage and new product performance
2016-09-19T11:54:25Z (GMT) by
New Product Development is vital to the performance of high-tech firms given the rapid change in technology and markets that they face. Drawing on the ambidexterity literature this study focuses on how firms can employ Ambidextrous Market Learning (AML), that is, the use of exploratory and exploitative market learning strategies simultaneously, to develop successful innovative products. Despite the exponential growth of studies focusing on ambidexterity, the literature portrays the ambidexterity concept as a present or absent like phenomena. However, in the current study, AML is conceptualised as a continuum of market knowledge that acts as a key source essential in creating customer value in the form of new products. Whilst research into ambidexterity contains abundant evidence of the positive effects of ambidexterity on firm performance, yet there is little discussion in the literature on the effects of AML on product advantage and the role of product innovativeness. A conceptual model comprising the relationship between AML, product advantage and product innovativeness is developed and empirically tested using 178 UK-based high-tech firms. The findings indicate that AML firms tend to develop products that have high product advantage. The study further focuses on how product innovativeness and product advantage constructs interact to create new product financial performance. Findings also suggest that marketing and technological discontinuity (product innovativeness from the firm s perspective) respectively has a negative and a positive moderating impact on product advantage. In addition, modelling product innovativeness from the customers perspective (customer discontinuity) in the same model sheds new light on the relationship between product advantage, product innovativeness and product performance. By further examining the moderating effects of marketing and technological discontinuity on the link between AML and product advantage, the analyses reveals the different scenarios in which the benefits of AML firms may outweigh its implementation cost.