NPD collaboration in an asymmetrical investment context: A relational view

In order to contribute to the discussion concerning how to organize NPD collaboration aimed at improving results, the present exploratory empirical research adopts a relational perspective to analyze said phenomenon. First, we study the impact of two key sources of relational rents, communication quality and trust, on new product performance. Second, we analyze the moderating impact of relationship investment asymmetry in said relationships. Using a sample of 207 NPD collaboration projects undertaken by innovative firms, empirical findings indicate that communication quality and trust are both positively related to new product performance. Nevertheless, these effects depend on the relative asymmetry of partner investment. Under conditions of symmetrical investment or near symmetrical investment (small differences between partner investment), managers should stress the quality of communication. Yet, whenever they recognize that project investments might not be balanced, they should analyze the expected degree of investment asymmetry. In medium-high asymmetrical relationships, managers should seek a partner they already trust if they wish to be successful. For low-medium differences in partner investment, managers can combine the two strategies, communication quality and trust, since both contribute positively to new product performance.