IDEAS home Printed from https://ideas.repec.org/a/eee/jbvent/v27y2012i6p607-621.html
   My bibliography  Save this article

The development of new products: The role of firm context and managerial cognition

Author

Listed:
  • Plambeck, Nils

Abstract

We explore the effect of organizational factors and managerial cognition on firms' entrepreneurial actions and investigate the relationship between these antecedents by drawing from prior work on corporate entrepreneurship, managerial cognition, and the attention-based view of the firm. The analysis of data from 84 firms shows that firm strategy and resources influence the degree of negativity with which managers interpret events that lead to the development of new products. Our results also suggest that more negative evaluations of the triggering event lead to less innovative new products. While the strategy and the resources of a firm also have an effect on a new product's degree of innovativeness, at least part of this effect is mediated by executives' evaluation of the triggering event. The theoretical elaboration and our results contribute to a better understanding of the drivers of corporate entrepreneurial activities and point to the importance of considering both managerial and organizational factors for advancing our knowledge on firms' entrepreneurial actions.

Suggested Citation

  • Plambeck, Nils, 2012. "The development of new products: The role of firm context and managerial cognition," Journal of Business Venturing, Elsevier, vol. 27(6), pages 607-621.
    • Handle: RePEc:eee:jbvent:v:27:y:2012:i:6:p:607-621
    DOI: 10.1016/j.jbusvent.2011.08.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0883902611000607
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusvent.2011.08.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Phan, Phillip H. & Wright, Mike & Ucbasaran, Deniz & Tan, Wee-Liang, 2009. "Corporate entrepreneurship: Current research and future directions," Journal of Business Venturing, Elsevier, vol. 24(3), pages 197-205, May.
    2. Lay, Gunter & Wallmeier, Werner, 1999. "Automobilzulieferer - quo vadis? Strategien, Produktionsstrukturen und Leistungsindikatoren der Automobilzulieferindustrie Deutschlands," Bulletins "German Manufacturing Survey" 14, Fraunhofer Institute for Systems and Innovation Research (ISI).
    3. Ronald K. Mitchell & Lowell W. Busenitz & Barbara Bird & Connie Marie Gaglio & Jeffery S. McMullen & Eric A. Morse & J. Brock Smith, 2007. "The Central Question in Entrepreneurial Cognition Research 2007," Entrepreneurship Theory and Practice, , vol. 31(1), pages 1-27, January.
    4. Sucheta Nadkarni & Pamela S. Barr, 2008. "Environmental context, managerial cognition, and strategic action: an integrated view," Strategic Management Journal, Wiley Blackwell, vol. 29(13), pages 1395-1427, December.
    5. Hubert Gatignon & Michael L. Tushman & Wendy Smith & Philip Anderson, 2002. "A Structural Approach to Assessing Innovation: Construct Development of Innovation Locus, Type, and Characteristics," Management Science, INFORMS, vol. 48(9), pages 1103-1122, September.
    6. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-329, May.
    7. Will Mitchell & Kulwant Singh, 1993. "Death of the Lethargic: Effects of Expansion into New Technical Subfields on Performance in a Firm's Base Business," Organization Science, INFORMS, vol. 4(2), pages 152-180, May.
    8. Nils Plambeck & Klaus Weber, 2010. "When the Glass is Half Full and Half Empty: CEO's Ambivalent Interpretations of Strategic Issues," Post-Print hal-00528394, HAL.
    9. Hornsby, Jeffrey S. & Kuratko, Donald F. & Shepherd, Dean A. & Bott, Jennifer P., 2009. "Managers' corporate entrepreneurial actions: Examining perception and position," Journal of Business Venturing, Elsevier, vol. 24(3), pages 236-247, May.
    10. Herbert A. Simon, 1955. "A Behavioral Model of Rational Choice," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 69(1), pages 99-118.
    11. Shaker A. Zahra & Daniel F. Jennings & Donald F. Kuratko, 1999. "The Antecedents and Consequences of Firm-Level Entrepreneurship: The State of the Field," Entrepreneurship Theory and Practice, , vol. 24(2), pages 45-65, December.
    12. Nils Plambeck & Klaus Weber, 2010. "When the glass is half full and half empty: CEOs' ambivalent interpretations of strategic issues," Strategic Management Journal, Wiley Blackwell, vol. 31(7), pages 689-710, July.
    13. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 178-184, February.
    14. Jane E. Dutton & Robert B. Duncan, 1987. "The creation of momentum for change through the process of strategic issue diagnosis," Strategic Management Journal, Wiley Blackwell, vol. 8(3), pages 279-295, May.
    15. Daniel R. Denison & Jane E. Dutton & Joel A. Kahn & Stuart L. Hart, 1996. "Organizational Context And The Interpretation Of Strategic Issues: A Note On Ceos’ Interpretations Of Foreign Investment," Journal of Management Studies, Wiley Blackwell, vol. 33(4), pages 453-474, July.
    16. Hornsby, Jeffrey S. & Kuratko, Donald F. & Zahra, Shaker A., 2002. "Middle managers' perception of the internal environment for corporate entrepreneurship: assessing a measurement scale," Journal of Business Venturing, Elsevier, vol. 17(3), pages 253-273, May.
    17. Baron, Robert A. & Tang, Jintong, 2011. "The role of entrepreneurs in firm-level innovation: Joint effects of positive affect, creativity, and environmental dynamism," Journal of Business Venturing, Elsevier, vol. 26(1), pages 49-60, January.
    18. Dimo Dimov, 2007. "From Opportunity Insight to Opportunity Intention: The Importance of Person–Situation Learning Match," Entrepreneurship Theory and Practice, , vol. 31(4), pages 561-583, July.
    19. Norris F. Krueger Jr., 2000. "The Cognitive Infrastructure of Opportunity Emergence," Entrepreneurship Theory and Practice, , vol. 24(3), pages 5-24, April.
    20. Theresa S. Cho & Donald C. Hambrick, 2006. "Attention as the Mediator Between Top Management Team Characteristics and Strategic Change: The Case of Airline Deregulation," Organization Science, INFORMS, vol. 17(4), pages 453-469, August.
    21. Janet Bercovitz & Will Mitchell, 2007. "When is more better? The impact of business scale and scope on long‐term business survival, while controlling for profitability," Strategic Management Journal, Wiley Blackwell, vol. 28(1), pages 61-79, January.
    22. Lee, Lena & Wong, Poh Kam & Foo, Maw Der & Leung, Aegean, 2011. "Entrepreneurial intentions: The influence of organizational and individual factors," Journal of Business Venturing, Elsevier, vol. 26(1), pages 124-136, January.
    23. Pino G. Audia & Henrich R. Greve, 2006. "Less Likely to Fail: Low Performance, Firm Size, and Factory Expansion in the Shipbuilding Industry," Management Science, INFORMS, vol. 52(1), pages 83-94, January.
    24. R. Duane Ireland & Jeffrey G. Covin & Donald F. Kuratko, 2009. "Conceptualizing Corporate Entrepreneurship Strategy," Entrepreneurship Theory and Practice, , vol. 33(1), pages 19-46, January.
    25. Dean A. Shepherd & Dawn R. DeTienne, 2005. "Prior Knowledge, Potential Financial Reward, and Opportunity Identification," Entrepreneurship Theory and Practice, , vol. 29(1), pages 91-112, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Srivastava, Smita & Sahaym, Arvin & Allison, Thomas H., 2021. "Alert and Awake: Role of alertness and attention on rate of new product introductions," Journal of Business Venturing, Elsevier, vol. 36(4).
    2. Ju, Wei & Zhou, Xiaohu & Wang, Shuaibin, 2019. "The impact of scholars’ guanxi networks on entrepreneurial performance—The mediating effect of resource acquisition," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 521(C), pages 9-17.
    3. Matsuno, Ken & Kohlbacher, Florian, 2020. "Proactive marketing response to population aging: The roles of capabilities and commitment of firms," Journal of Business Research, Elsevier, vol. 113(C), pages 93-104.
    4. Oo, Pyayt P. & Allison, Thomas H. & Sahaym, Arvin & Juasrikul, Sakdipon, 2019. "User entrepreneurs' multiple identities and crowdfunding performance: Effects through product innovativeness, perceived passion, and need similarity," Journal of Business Venturing, Elsevier, vol. 34(5), pages 1-1.
    5. Rigtering, J.P.C. (Coen) & Weitzel, G.U. (Utz) & Muehlfeld, K. (Katrin), 2019. "Increasing quantity without compromising quality: How managerial framing affects intrapreneurship," Journal of Business Venturing, Elsevier, vol. 34(2), pages 224-241.
    6. Yuan Wu & Jin Zhang & Shoulin Liu & Lianrui Ma, 2022. "Does Government-Led Publicity Enhance Corporate Green Behavior? Empirical Evidence from Green Xuanguan in China," Sustainability, MDPI, vol. 14(6), pages 1-32, March.
    7. Boris Urban, 2017. "Corporate Entrepreneurship In South Africa: The Role Of Organizational Factors And Entrepreneurial Alertness In Advancing Innovativeness," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-20, September.
    8. Fioretti, Guido & Kwan, Stephen K. & Niciforo, Stefania, 2018. "A Business Model Bridging Knowledge Gaps," MPRA Paper 83936, University Library of Munich, Germany.
    9. Yi, Yaqun & Chen, Yu & Li, Dan, 2022. "Stakeholder ties, organizational learning, and business model innovation: A business ecosystem perspective," Technovation, Elsevier, vol. 114(C).
    10. Ding, Weirong & Ding, Jieyu, 2022. "New venture's product innovativeness strategy, institutional environment and new product performance," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    11. David Urbano & Andreu Turro & Mike Wright & Shaker Zahra, 2022. "Corporate entrepreneurship: a systematic literature review and future research agenda," Small Business Economics, Springer, vol. 59(4), pages 1541-1565, December.
    12. William Q. Judge & Yuping Liu–Thompkins & J. Lee Brown & Chatdanai Pongpatipat, 2015. "The Impact of Home Country Institutions on Corporate Technological Entrepreneurship via R&D Investments and Virtual World Presence," Entrepreneurship Theory and Practice, , vol. 39(2), pages 237-266, March.
    13. Waldkirch, Matthias & Kammerlander, Nadine & Wiedeler, Conrad, 2021. "Configurations for corporate venture innovation: Investigating the role of the dominant coalition," Journal of Business Venturing, Elsevier, vol. 36(5).
    14. Andreea N. Kiss & Dirk Libaers & Pamela S. Barr & Tang Wang & Miles A. Zachary, 2020. "CEO cognitive flexibility, information search, and organizational ambidexterity," Strategic Management Journal, Wiley Blackwell, vol. 41(12), pages 2200-2233, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Evelien P. M. Croonen & Maryse J. Brand & Eelko K. R. E. Huizingh, 2016. "To be entrepreneurial, or not to be entrepreneurial? Explaining differences in franchisee entrepreneurial behavior within a franchise system," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 531-553, June.
    2. UMRANI Waheed Ali & MAHMOOD Rosli & AHMED Umair, 2016. "Unveiling The Direct Effect Of Corporate Entrepreneurship’S Dimensions On The Business Performance: A Case Of Big Five Banks In Pakistan," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 11(1), pages 181-195, April.
    3. Dean A. Shepherd & Jeffery S. Mcmullen & William Ocasio, 2017. "Is that an opportunity? An attention model of top managers' opportunity beliefs for strategic action," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 626-644, March.
    4. Weber, Clarissa E. & Chahabadi, Dominik & Maurer, Indre, 2020. "Antecedents and performance effect of managerial misperception of institutional differences," Journal of World Business, Elsevier, vol. 55(1).
    5. Marisa Lages & Carla S. Marques & João J. M. Ferreira & Fernando A. F. Ferreira, 2017. "Intrapreneurship and firm entrepreneurial orientation: insights from the health care service industry," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 837-854, September.
    6. Jan Lampe & Priscilla Sarai Kraft & Andreas Bausch, 2020. "Mapping the Field of Research on Entrepreneurial Organizations (1937–2016): A Bibliometric Analysis and Research Agenda," Entrepreneurship Theory and Practice, , vol. 44(4), pages 784-816, July.
    7. Boris Urban, 2017. "Corporate Entrepreneurship In South Africa: The Role Of Organizational Factors And Entrepreneurial Alertness In Advancing Innovativeness," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-20, September.
    8. Rigtering, J.P.C. (Coen) & Weitzel, G.U. (Utz) & Muehlfeld, K. (Katrin), 2019. "Increasing quantity without compromising quality: How managerial framing affects intrapreneurship," Journal of Business Venturing, Elsevier, vol. 34(2), pages 224-241.
    9. Kent D. Miller & Shu-Jou Lin, 2015. "Analogical reasoning for diagnosing strategic issues in dynamic and complex environments," Strategic Management Journal, Wiley Blackwell, vol. 36(13), pages 2000-2020, December.
    10. Wu Zhao & Wei Liu & Yun Chen, 2019. "Internal Fission Strategies in Corporate Entrepreneurship: A Case Study in China," Sustainability, MDPI, vol. 11(19), pages 1-20, September.
    11. Lennart Burger & Ivana Blažková, 2020. "Internal Determinants Promoting Corporate Entrepreneurship in Established Organizations: A Systematic Literature Review," Central European Business Review, Prague University of Economics and Business, vol. 2020(2), pages 19-45.
    12. Nils Plambeck & Klaus Weber, 2009. "CEO Ambivalence and Responses to Strategic Issues," Organization Science, INFORMS, vol. 20(6), pages 993-1010, December.
    13. Luís Marques & João J. Ferreira & Sascha Kraus & Raj Mahto, 2022. "Organizational Antecedents of Corporate Entrepreneurship: A Quantitative Investigation from Portugal," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 31(3), pages 483-513, November.
    14. Ilídio Barreto & david l. Patient, 2013. "Toward a theory of intraorganizational attention based on desirability and feasibility factors," Strategic Management Journal, Wiley Blackwell, vol. 34(6), pages 687-703, June.
    15. David Urbano & Andreu Turro & Mike Wright & Shaker Zahra, 2022. "Corporate entrepreneurship: a systematic literature review and future research agenda," Small Business Economics, Springer, vol. 59(4), pages 1541-1565, December.
    16. Beverly B. Tyler & Turanay Caner, 2016. "New product introductions below aspirations, slack and R&D alliances: A behavioral perspective," Strategic Management Journal, Wiley Blackwell, vol. 37(5), pages 896-910, May.
    17. R. Duane Ireland & Michael C. Withers & Joseph S. Harrison & David S. Boss & Richard Scoresby, 2023. "Strategic Entrepreneurship: A Review and Research Agenda," Entrepreneurship Theory and Practice, , vol. 47(2), pages 495-523, March.
    18. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    19. Gavin M Schwarz & Karin Sanders & Dave Bouckenooghe, 2020. "In the driving seat: Executive’s perceived control over environment," Australian Journal of Management, Australian School of Business, vol. 45(2), pages 317-342, May.
    20. Matsuno, Ken & Kohlbacher, Florian, 2020. "Proactive marketing response to population aging: The roles of capabilities and commitment of firms," Journal of Business Research, Elsevier, vol. 113(C), pages 93-104.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbvent:v:27:y:2012:i:6:p:607-621. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusvent .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.