Marketing capability, organizational adaptation and new product development performance

The authors propose a mediated moderation model that links marketing capability from an outside-in perspective, organizational adaptation mechanism exploitation and exploration, organizational structural factors, and new product development (NPD) performance. The model is tested using survey data from USA and China. The results suggest that marketing capability is positively associated with NPD performance. Moreover, exploitation and exploration respectively mediate the positive relationship between marketing capability and NPD performance. In addition, customer-based structure, decentralization, and interfunctional integration positively moderate the relationship between marketing capability and NPD performance. The results suggest that marketing capability is important for the firm to adapt to external changes as long as the firm aligns organizational structural factors with the requirement of marketing capability for exploitation and exploration in product innovation.