How Can Firms Locate Proactive Strategic Flexibility in Their New Product Development Process?: The Effects of Market and Technological Alignment

This study examines proactive decision-making and design flexibilities in new product development (NPD) as critical forms of strategic flexibility. The conceptual framework identifies market and technological alignment as drivers of proactive strategic flexibility, and examines their association with strategic NPD performance and fit with market demands. The model is tested using data collected from a sample of 103 European manufacturing firms. The results suggest that market and technological alignment are important in developing proactive decision-making and design flexibilities, which in turn have significant effects on strategic NPD performance and NPD fit with market demands. Overall, the study will help managers develop a better understanding of key similarities and differences in proactive strategic flexibility practices and decide how to allocate resources to achieve market and technological alignment supporting their NPD activities. The paper provides novel insights into proactive strategic flexibility in NPD, its alignment with market and technological environments, and its effects on product development performance.