Exploring the antecedents and consequences of effectuation in NPD: the moderating role of firm size

ABSTRACT

Using survey data from 291 Chinese firms, we explore the potential antecedents and consequences of effectuation in new product development (NPD) activities, as well as investigating the moderating role of firm size. We find that effectuation has a positive effect on new product creativity (NPC). We further find that both environmental dynamism (ED) and slack resources (SR) have a positive effect on effectuation. In terms of the moderating role of firm size, we find it weakens the relationship between ED and effectuation, but strengthens the relationship between SR and effectuation. Our findings support the active role effectuation plays in boosting NPC and extend existing understanding of how ED and SR promote effectuation respectively. The study also highlights the different moderating roles of firm size between two antecedents and effectuation.

KEYWORDS:

• Decision-making logic
• effectuation
• new product creativity

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Cheng Deng

Cheng Deng is a Ph.D. student at Xi’an Jiaotong University. His current research interests include effectuation logic, NPD performance, and digital transformation.

Jianjun Yang

Jianjun Yang is a Professor at Xi’an Jiaotong University. He has published widely in Chinese and international academic journals. His current research interests include technological innovation and knowledge management.

Lawrence Loh

Lawrence Loh is an Associate Professor at National University of Singapore. His current research interests include corporate governance and strategic management.

Tian Mu

Tian Mu is a Ph.D. student at Xi’an Jiaotong University. Her current research interests include conflict management and technological innovation.