Building Market Capability for New Product Development

Through the dual theoretical lenses of absorptive capacity, dynamic capability and market orientation, this project investigates how firms develop market capabilities in new product development. The extant literature, which largely stems from a technological perspective, reveals the existence of two independent sets of properties embedded in the notion of broader capability building. One set foregrounds building on knowledge and development of procedures, including elements of ‘path-dependence’ theory, with its associated features of process, position and path. The other privileges the issues that depart from well-trodden procedures, pointing to destruction, experimentation and change. This project explores an existence of an simultaneous relationship of two sets of properties in developing market capability.