Goal orientations, absorptive capacity, and NPD team performance: evidence from China

Abstract

Purpose The purpose of this paper is to investigate the relationships between different types of team goal orientations (team learning orientation, team prove orientation and team avoid orientation) and team performance in new product development (NPD) and how these relationships are mediated by team absorptive capacity. Design/methodology/approach Data were collected through two surveys from 71 NPD teams and analyzed by the confirmatory factor analysis, correlation and hierarchical regression analysis methods. Findings The authors find that both teams’ learning and prove orientations are positively related to their absorptive capacity, which leads to increasing team performance in NPD. Further, the authors find support for the mediating role of team absorptive capacity in connecting team learning orientation and team prove orientation with team performance in NPD. Practical implications For practitioners, this paper suggests that to benefit from their NPD team efforts, firms with innovative aspirations should consider their existing and desired access to external knowledge sources and particularly the extent to which they can successfully integrate external knowledge with their internal knowledge structure. Originality/value The explication of team absorptive capacity is as a key mechanism through which different goal orientations of NPD teams inform the ability to successfully develop new products. By integrating the concepts of team goal orientations, team absorptive capacity and team performance in NPD, the authors seek to gain a better understanding of why some firms are more likely to do better than others in NPD. Findings of this paper extend concept of the nomological network on how absorptive capacity may serve as a direct outcome of different goal orientations. This paper responds to how Chinese firms can increase their innovative performance by infusing their current knowledge bases with external knowledge and extends the literature on knowledge management and managerial ties on innovation.