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Why New Business Development Projects Fail: Coping with the Differences of Technological versus Market Knowledge

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Author Info

  • Burgers, J.H.
  • Bosch, F.A.J. van den
  • Volberda, H.W.

Abstract

Managing through projects has become important for generating new knowledge to cope with technological and market discontinuities. This paper examines how the fit between the creation of technological and market knowledge and important project management characteristics, i.e. project autonomy and completion criteria, influences the success of new business development (NBD) projects. In-depth longitudinal case research on NBD-projects commercialised during the period 1993-2003 in the consumer electronics industry highlights that project management characteristics focusing only on the creation of technological knowledge contributed to the failure of those NBD-projects that required new market knowledge as well. The findings indicate that senior management support and engaging in an alliance with partners possessing complementary market knowledge can offset this misalignment of the organisation of NBD-projects.

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File URL: http://hdl.handle.net/1765/10622
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Bibliographic Info

Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2007-072-STR.

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Date of creation: 30 Oct 2007
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Handle: RePEc:dgr:eureri:300011917

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Web page: http://www.erim.eur.nl/

Related research

Keywords: new product development; project management; strategic alliances; knowledge; new business development; exploitation-exploration; sales force;

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Cited by:
  1. Burgers, J. Henri & Jansen, Justin J.P. & Van den Bosch, Frans A.J. & Volberda, Henk W., 2009. "Structural differentiation and corporate venturing: The moderating role of formal and informal integration mechanisms," Journal of Business Venturing, Elsevier, vol. 24(3), pages 206-220, May.

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