The positive effect of inward and outward capability on new product development performance

This study develops an original framework of inward and outward capability to explore the positive effect of adaptive ability (inward capability) and relationship learning (outward capability) on new product development performance through the partial mediator - resource integration. The study employed questionnaire survey and collected data from 167 Taiwanese manufacturing companies. Confirmatory factor analysis and Structural Equation Modeling (SEM) are applied to verify the hypotheses. This study classifies Taiwanese manufacturing companies into three groups - highly, medially, and lowly capable companies. The results show that resource integration of highly capable companies are the most, and those of medially capable companies are the next, while those of lowly capable companies are the least. This study asserts companies should invest in both inward and outward capability. This study combines the concepts of inward and outward capability to develop an integral conceptual model of new product development performance to explore its managerial implications.