Product orientations and the development strategies of new convergence products: moderating effects of corporate capabilities

This research examines the causal linkage among product orientation, the degree ofconvergence, development strategies, and performance of the new convergence products(NCP), through the establishment of a structural equation model that builds a soundtheoretical foundation for NCP development and performance. This research identifiesseveral significant findings. First, the study proves the technology-push, demand-pull andcompetitive pressure as a product orientation of NCP development. Second, explorative andexploitative learning and vertical collaboration are of importance and positively influencethe proficiency of product development process to increase NCP performance. Third,changes of the proposed relationships in this study are contingent upon the corporatecapability. Compared to firms with lower capability, firms with higher capability tend tohave technology-push and demand-pull as key product orientation of NCP development aswell as strengthen the vertical collaboration of NCP development.