A Study on How a Firm's Institutional Capital Influences Its New Product Development——The Moderating Roles of Regional Marketization and Competitive Intensity

Abstract

Abstract:

This paper theoretically discusses and empirically examines the effects of a firm's formal institutional capital and informal institutional capital on new product development (NPD) (NPD speed vs. NP innovativeness), their potential heterogeneities, and their contingencies upon external environment as well. The empirical results of the survey data from 303 paired firm samples in China show that:First, both the firm's formal and informal institutional capitals have positive effects on NPD speed. Second, the firm's informal institutional capital has a higher positive effect on NP innovativeness than the formal institutional capital does. Moreover, marketization index positively moderates the relationships between the firm's informal institutional capital and NPD (both NPD speed and NP innovativeness), but only negatively moderates the relationship between the firm's formal institutional capital and NPD speed. Competitive in-tensity negatively moderates the relationship between the firm's formal institutional capital and NPD speed, but positively moderates the relationship between the firm's formal institutional capital and NP innovativeness. In contrast, competitive intensity positively moderates the relationship between the firm's informal institutional capital and NPD speed, but negatively moderates the relationship between the firm's informal institutional capital and NP innovativeness. This research provides theoretical guidance for a firm's NPD practice and its capital utilization.

Key words: NPD speed, NP innovativeness, formal institutional capital, informal institutional capital, competitive intensity, marketization index

Gao Shanxing, Xiao Zhenxin, Gao Yu. A Study on How a Firm's Institutional Capital Influences Its New Product Development——The Moderating Roles of Regional Marketization and Competitive Intensity[J]. , 2018, 30(9): 110-120.

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