Effects of Product Development Phases on Innovation Network Relationships

Abstract

In research literature, product development has frequently been associated with four distinct phases: introduction, growth, maturity, and decline. While these phases have been related to and used for the study of product life cycle, market strategies and competition, less or no attention has been given to the subject of Innovation Network Relationships (INRs), and more specifically, to whether and how INRs are affected by these Product Development Phases (PDPs). Based on a literature review of Resource Dependence Theory (RDT) and four case studies, this chapter contributes by discussing how various INRs are affected by PDPs of an innovative firm. Findings include: (1) the specific needs and resource dependence by the innovative firm during different PDPs affect the status of the firm’s INRs, whereas new relationships are built and old ones are finished; (2) during product development, the INRs become increasingly complex where network parties become negative resources of the innovative firm through increased uncertainty being introduced into previous relationships; and (3) the development of INRs cannot be captured on a dyadic level, but various parties’ relationships with one another need to be considered.