The joint effect of project‐level exploratory and exploitative learning in new product development

Abstract

Purpose

The purpose of this paper is to further understand the joint effect of project‐level exploratory and exploitative learning in new product development. It aims to examine the complicated relationships among exploratory learning, exploitative learning and new product performance at a single project level. In addition, it seeks to shed light on the contextual effects of a firm's market orientation on the relationship between joint occurrence of both learning activities and new product development performance.

Design/methodology/approach

The paper is based on a questionnaire survey/analysis of a sample of 298 projects from high‐tech firms in Taiwan.

Findings

The findings suggest that the joint occurrence of both learning activities has a positive effect on new product performance and depends upon a high level of one learning activity coupled with a small dose of the other. Drawing on cultural and behavioral perspectives of market orientation, the results also indicate that market orientation may enhance the joint effect of both learning activities on new product performance.

Practical implications

This paper offers insight to project managers with regard to the importance of rationally mixing with exploratory and exploitative learning during new product development. Furthermore, the study argues that market orientation is an alternative of organizational design that fosters the positive joint effect of both learning behaviors.

Originality/value

The results empirically support the theoretical argument that a high‐low matching of exploratory and exploitative learning can enhance performance at the level of a single project. The study provides a multiple‐level framework to understand how the firm‐level MO strengthens the positive effects of joint occurrence of project‐level exploratory and exploitative learning activities during new product development.

Citation

Chu, C., Li, C. and Lin, C. (2011), "The joint effect of project‐level exploratory and exploitative learning in new product development", European Journal of Marketing, Vol. 45 No. 4, pp. 531-550. https://doi.org/10.1108/03090561111111325