Internal vs. external learning in new product development: Effects on speed, costs and competitive advantage

Eric H. Kessler, Paul E. Bierly, Shanthi Gopalakrishnan

Research output: Contribution to journalArticlepeer-review

249 Scopus citations

Abstract

The purpose of this study was to investigate how different technology sourcing strategies throughout the new product development process influenced innovation speed, development costs, and competitive advantage. We studied 75 new product development projects from ten large, U.S.-based companies in several industries. Results indicated that: (1) more external sourcing during the early (i.e., idea generation) stage was related with lower competitive success; (2) more external sourcing during the later (i.e., technological development) stage was related with slower innovation speed; and (3) development costs tended to rise with greater reliance on external sources of technology, but this result was not statistically significant.

Original languageEnglish (US)
Pages (from-to)213-224
Number of pages12
JournalR and D Management
Volume30
Issue number3
DOIs
StatePublished - Jul 2000

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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