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


J. Henri Burgers


Australian Centre of Entrepreneurship Research, QUT Business School; Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship

Frans A. J. Van Den Bosch


Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship; Erasmus Research Institute of Management (ERIM)

H. W. Volberda


Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)
30 2007, 10

ERIM Report Series Reference No. ERS-2007-072-STR

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.

Number of Pages in PDF File: 43

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

JEL Classification: M, D21, L20, G14, L15, D80, D83, L25, L63, L68, O3

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Date posted: November 27, 2007  

Suggested Citation

Burgers, J. Henri, Van Den Bosch, Frans A. J. and Volberda, H. W., Why New Business Development Projects Fail: Coping with the Differences of Technological Versus Market Knowledge (30 2007, 10). ERIM Report Series Reference No. ERS-2007-072-STR. Available at SSRN: http://ssrn.com/abstract=1032756

Contact Information

J. Henri Burgers (Contact Author)
Australian Centre of Entrepreneurship Research, QUT Business School ( email )
Brisbane, Queensland 4001
Australia
Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship ( email )
RSM Erasmus University
Rotterdam, 3000 DR
Netherlands
Frans A. J. Van Den Bosch
Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship ( email )
RSM Erasmus University
Rotterdam, 3000 DR
Netherlands
+31 10 408 1955/2005 (Phone)
+31 10 453 0137 (Fax)
HOME PAGE: http://www.rsm.nl/fvandenbosch
Erasmus Research Institute of Management (ERIM)
P.O. Box 1738
3000 DR Rotterdam
Netherlands
Henk W. Volberda
Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )
P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands
+31 10 408 2761 (Phone)
+31 10 408 9013 (Fax)
HOME PAGE: http://www.eur.nl/fbk/dep/dep4/faculty_members/Henk_Volberda
Erasmus Research Institute of Management (ERIM)
P.O. Box 1738
3000 DR Rotterdam
Netherlands
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