LAUSR

Prior research argues that higher levels of innovation require less flexible, or more formalised, new product development (NPD) processes; that is, there is a negative relationship between level of innovation and flexible NPD processes. In this paper, we investigate the moderating role of firms’ appropriability strategies, intellectual property (IP) and first-mover, on the use of flexible NPD processes for different levels of innovation (radical, more innovative, and incremental). Using the Product Development and Management Association Foundation’s 2012 Comparative Performance Assessment Study, this research shows that the greater use of IP and first-mover appropriability strategies is associated with an increased use of flexible NPD processes as the level of innovation moves from incremental to radical. Therefore, the results show that the greater use of these appropriability strategies weakens the negative relationship between level of innovation and flexible NPD processes.