6. Discussion and implications
This study focuses on the impact of dynamic capabilities on project effectiveness and efficiency. In regard to effectiveness, the results show that sensing, learning and integrating increase team effectiveness. That is, if a NPD team has the capability of sensing the changes in business environments, learning current internal and external activities and integrating different sources of knowledge, they can reach pre-specified new product standards to management’s satisfaction. In regard to efficiency, team members with high learning, integrating and coordinating capabilities will enhance team efficiency. As such, learning, integrating and coordinating can reduce development time and control incurred costs within a pre-determined budget. Although Park and Kim (2013) found that only the aggregated form, not separated form, of dynamic capabilities influence NPD performance, this research finding extends their results into how a single capability can affect the project effectiveness and efficiency of radical NPD projects.
This study suggests two theoretical implications in NPD research. First, this study extends existing theories by examining the separate impacts of each component of dynamic capability on radical innovation projects. The findings show that learning capability is the most important ingredient of an NPD team in achieving target performance. As suggested by Barrales-Molina et al. (2013), learning mechanisms such as knowledge codification help to reconfigure existing routines. Second, the study enhances the current understanding on how different dynamic capabilities influence two aspects of NPD team performance: effectiveness and efficiency. To improve both effectiveness and efficiency, learning and integrating capabilities are the critical components of NPD teams.