Why New Business Development Projects Fail: Coping with the Differences of Technological Versus Market Knowledge
43 Pages Posted: 27 Nov 2007
Date Written: October 30, 2007
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
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