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

43 Pages Posted: 27 Nov 2007

See all articles by J. Henri Burgers

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)

Date Written: October 30, 2007

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.

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

Suggested Citation

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

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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