Effects of Relational Knowledge Emphasis on New Product Development Strategy–Model

Abstract

The “Effects of Relational Knowledge Emphasis on New Product Development Strategy–Model” is a measurement instrument developed by Wang et al. (2023) to quantify and examine the influence of relational knowledge emphasis within organizations. The central objective of the associated study was to empirically investigate how a firm’s focus on relational knowledge impacts its strategic choices regarding New Product Development (NPD), specifically looking at strategic approaches like Exploration and Exploitation.

The items comprising this comprehensive model were adapted and enhanced based on foundational work in strategic management and organizational learning by Johnson et al. (2004), Zhou & Wu (2010), and Jaworski & Kohli (1993). Validation of the measure was achieved by administering it to a targeted sample of Business-to-Business (B2B) firms operating in China. The resulting academic publication provided extensive evidence supporting the model’s factor structure, its internal consistency, and its overall validity within this organizational context.

Keywords

Business-To-Business Firms, Exploitation, Exploration, Functional Knowledge, Interactional Knowledge, Knowledge Stores, Market Knowledge, New Product Development Strategy, Relational Knowledge Emphasis, State Ownership, Technology Turbulence, Organizational Behavior, Organizational Learning.

Authors

Wang, Xinchun, Wei, Ruiqi, Liu, Yuerong, Xia, Hui, Zhao, Yanhui.

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Purpose

The primary purpose of this measurement model is to systematically assess the specific effects and mechanisms through which an organization’s emphasis on relational knowledge influences its subsequent new product development strategy. It aims to provide a reliable tool for researchers examining strategic management and inter-organizational knowledge dynamics.

Construct

The scale measures constructs related to Product Development and Relational Knowledge, focusing on several key sub-dimensions that drive organizational strategy. These constructs include three types of Knowledge Stores (Interactional, Functional, and Market knowledge), organizational strategic orientations (Exploration and Exploitation), and the environmental and contextual factor of Technology Turbulence, alongside the control variable of State Ownership.

Validity

The validity of the measure was rigorously established through both convergent and discriminant validity analyses. The results demonstrated strong support for convergent validity, as all factor loadings were positive and statistically significant at the 0.05 level. Furthermore, the majority of factor loadings exceeded the recommended value of 0.65, confirming acceptable convergent validity consistent with the standards proposed by Nunnally (1978).

To establish discriminant validity, the researchers compared the Average Variance Extracted (AVE) values against the squared correlations between the corresponding pairs of constructs. All calculated AVE values were found to be greater than the squared correlations, providing robust evidence for the model’s ability to differentiate between distinct constructs, aligning with the criteria set forth by Bagozzi, Yi, & Phillips (1991).

Reliability

The internal consistency, a crucial measure of reliability, was evaluated using Composite Reliability (CR). The reported CR values for the various constructs within the model ranged from 0.73 to 0.87. This range indicates acceptable to good internal consistency across all measured dimensions, confirming the stability and reliability of the instrument.

Factor Analysis

A Confirmatory Factor Analysis (CFA) was performed to evaluate the structural integrity and fit of the proposed measurement model. The CFA yielded acceptable model fitness indices: χ2 = 397.49 (with df = 215, p < 0.001), CFI = 0.91, TLI = 0.90, and RMSEA = 0.07. These metrics collectively suggest a satisfactory fit of the observed data to the theoretical factor structure.

Additionally, the researchers addressed the potential threat of common method bias. A specific test was conducted where the correlation matrix was statistically adjusted by subtracting the lowest positive correlation observed between a designated marker variable and relative exploration in NPD (γ = 0.10, p > 0.10). Since the correlation matrix remained statistically unchanged after this adjustment, the study concluded that common method bias did not significantly compromise the validity of the final results.

Instrument

Test Type: This is an original instrument, classified as an Inventory/Questionnaire.

Format: The instrument consists of 24 items. Responses are captured using 7-point rating scales. The administration is conducted electronically.

Language Available: The test is available in English.

Population Group: The intended population group is Human.

Age Group: No data is Available.

Population Details: The instrument was administered to a sample of Business-To-Business (B2B) firms located in China.

Test Methodology: The development and validation process included assessments of Test Validity, Convergent Validity, Discriminant Validity, Test Reliability, Internal Consistency (Composite Reliability), Factor Analysis, Confirmatory Factor Analysis (CFA), and the overall Measurement Model.

Keywords

Business-To-Business Firms, Customer Relationship Management, Exploitation, Exploration, Functional Knowledge, Interactional Knowledge, Knowledge Stores, Market Knowledge, New Product Development Strategy, Organizational and Occupational Measures, Organizational Behavior, Organizational Learning, Product Design, Relational Knowledge Emphasis, State Ownership, Technology, Technology Turbulence.

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Authors

Wang, Xinchun

• Author ORCID Identifier: No data is Available

• Affiliation: West Virginia University John Chambers College of Business and Economics

• Email addresses: [email protected]

Wei, Ruiqi

• Author ORCID Identifier: No data is Available

• Affiliation: Emlyon business school

• Email addresses: [email protected]

Liu, Yuerong

• Author ORCID Identifier: No data is Available

• Affiliation: University of Massachusetts Lowell Manning School of Business

• Email addresses: [email protected]

Xia, Hui

• Author ORCID Identifier: No data is Available

• Affiliation: Shandong University Weihai School of Business

• Email addresses: [email protected]

Zhao, Yanhui

• Author ORCID Identifier: No data is Available

• Affiliation: University of Nebraska at Omaha College of Business Administration

• Email addresses: [email protected]

Correspondence Address: Xia, Hui: [email protected]

Permissions & Fee and Test Year

• Permissions: The instrument may be used for Research/Teaching purposes.

• Commercial: No

• Fee: No

• Test Year: 2023

Reference’s

Wang, X., Wei, R., Liu, Y., Xia, H., & Zhao, Y. (2023). The effects of relational knowledge emphasis on new product development strategy. Industrial Marketing Management, 109, 257–270. https://doi.org/10.1016/j.indmarman.2023.02.005

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Items of the Effects of Relational Knowledge Emphasis on New Product Development Strategy–Model

The full list of 24 test items is available in the source publication. They can be found in Appendix B on pages 268-269 of the article.

The items are designed to measure the following constructs and subscales:

• Knowledge stores

  • Interactional knowledge

  • Functional knowledge

  • Market knowledge

• Exploration

• Exploitation (Technology turbulence)

• State ownership

Knowledge stores (Johnson et al., 2004)

Please evaluate the level of knowledge your firm has in the following areas (1 = very little; 7 = lots of knowledge)

Interactional knowledge

Functional knowledge

Market knowledge

Exploration (Zhou & Wu, 2010)

In the new product development processes, to what extent has your firm (1 = very low; 7 = very high).

Exploitation (Zhou & Wu, 2010)

In the new product development processes, to what extent has your firm (1 = very low; 7 = very high).

Technology turbulence (Jaworski & Kohli, 1993)

State ownership

Please indicate the level of state ownership in your firm.