Effect of new product alliances on building cross-functional capability: cross-fertilisation or cannibalisation? |
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Authors: | Wei Jiang |
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Institution: | Department of Marketing, School of Management, Xiamen University, Xiamen, Fujian, People’s Republic of Chinahttps://orcid.org/0000-0002-3866-8888 |
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Abstract: | ABSTRACTThe extant literature has focused mainly on how establishing alliances helps firms develop their capabilities within focal functional areas, while paying limited attention to the cross-functional effects of alliances. Drawing on the knowledge-spillover literature and resource-dependence theory, this study investigates the effects of new product development (NPD) alliances on building cross-functional capabilities, testing the influences of important organisational, strategic, and environmental contingencies. Based on survey data collected from 212 Chinese firms, the findings reveal that, for resource-abundant firms, R&D-focused NPD alliances have cross-functional fertilisation effects on marketing capabilities; whereas for resource-constrained or highly innovative firms such alliances cannibalise marketing capabilities; in dynamic markets, marketing-focused NPD alliances cross-fertilise technological capabilities, but such an effect is weaker in firms adopting a highly incremental innovation orientation. Overall, this study sheds new light on how NPD alliances affect cross-functional capabilities under important contingencies. |
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Keywords: | New product alliances knowledge spillover resource dependence innovation orientation |
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