Organisational Ambidexterity and NPD Performance A Conceptual Framework

New product development (NPD) consists of exploitative activity for incremental product development and explorative activity for radical product development. However, since the functions of exploitative and explorative NPDs are of opposite directions, they compete for scarce resources that make them in trade-off nature. This trade-off nature can negatively affects NPD performance. As a solution to this problem, a concept of organisational ambidexterity has emerged. This concept refers to a firm’s ability to simultaneously pursuit exploitative and explorative NPDs that able to achieve the benefits of both worlds. However, as this concept is relatively new, its relationship with NPD performance is still underexplored. In details, structural ambidexterity and contextual ambidexterity that are two types of organisational ambidexterity need to be compared and contrasted to NPD financial and nonfinancial performance since they pursuit exploitative and explorative NPDs in different ways. As such, this study contributes to NPD and organisational ambidexterity literatures through a conceptual framework that shows the relationships between structural ambidexterity, contextual ambidexterity, and NPD financial and nonfinancial performance. A potential setting for empirical study based on this conceptual framework is also addressed.

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