The role of horizontal and vertical new product alliances in responsive and proactive market orientations and performance of industrial manufacturing firms

Sena Ozdemir, Destan Kandemir, Teck Yong Eng

Research output: Contribution to journalArticle

30 Citations (Scopus)

Abstract

This study examines different roles of new product alliance partners in enhancing responsive market orientation (RMO) and proactive market orientation (PMO) of industrial manufacturing firms in the context of learning in business-to-business (B2B) relationships. A survey of 146 firms shows that horizontal new product alliances with competitors provide access to similar industrial knowledge and know-how and thus help improve a manufacturing firm's RMO through exploitative learning. Although vertical new product alliances with suppliers may grant access to similar domains of knowledge, the findings of this study do not provide any support for their effect on a manufacturing firm's RMO. In contrast, the study shows that vertical new product alliances with research institutions provide access to a broader knowledge base and greater know-how with higher levels of non-redundancy and thus help improve a PMO through explorative learning. In addition, the results suggest that both RMO and PMO developed in different types of new product alliances enable a manufacturing firm to improve its new product performance and eventually its overall performance.

Original languageEnglish
Pages (from-to)25-35
Number of pages11
JournalIndustrial Marketing Management
Volume64
Early online date29 Mar 2017
DOIs
Publication statusPublished - 1 Jul 2017
Externally publishedYes

Keywords

  • Business-to-business new product alliances
  • New product performance
  • Organizational learning
  • Proactive market orientation
  • Responsive market orientation

ASJC Scopus subject areas

  • Marketing

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