The effect of NPD complexity on NPD performance via inter-organizational collaboration and conflict

Abstract

Purpose This study develops a conceptualization of NPD (new product development) complexity and explores how inter-organizational collaboration and conflict influence NPD performance. Design/methodology/approach An empirical examination tests the proposed relationships in the context of Korean manufacturing firms, which currently engage in NPD projects with their key partners. Structural equation modeling (SEM) was used to examine the hypotheses. Findings The findings suggest that a higher level of NPD complexity simultaneously calls for inter-organizational collaboration and conflict, and these two factors influence NPD performance in a conflicting manner: inter-organizational collaboration serves as a driver, and inter-organizational conflict acts as a barrier against NPD performance. Originality/value This study provides answers to the academic and practical calls by providing how NPD complexity should be managed in a way to increase NPD performance. This study provides insight into how manufacturing firms form inter-organizational collaboration practices and why they need to mitigate inter-organizational conflict.