Does Learning Orientation Drive New Product Competitive Advantage and Success? A Conceptual Framework and Research Propositions

Since so many new products fail in the marketplace after their launch, identifying the determinants of new product competitive advantage and performance is critical. New product development (NPD) requires the acquisition, dissemination, and utilization of information that is supplied through organizational learning. Learning-oriented organizational cultures facilitate discovery and creativity processes that go into the NPD. In spite of its significance, the concept of a learning orientation has not been explored sufficiently at the project level in the NPD context. This study aims to fill this void in the literature by articulating a conceptual framework that depicts the direct and indirect relationships between organizational learning orientation and new product competitive advantage. Memory level and memory dispersion mediate the relationship between these two constructs at the project level. The evidence supporting the proposed research framework suggests that learning-oriented organizations create strong organizational memories that lead to higher levels of new product competitive advantage and success. The theoretical and practical implications of this study are discussed and future research suggestions are provided.