Full citation

Marsh, S. J., & Stock, G. N. (2006). Creating Dynamic Capability: The Role of Intertemporal Integration, Knowledge Retention, and Interpretation. Journal of Product Innovation Management, 23, 422-436.

Format: Peer-reviewed article

Type: Research — Non-experimental

Experience level of reader: Advanced

Annotation: Surveys were administered to new product development professionals to collect data on relationships between knowledge retention, interpretation, integration of prior knowledge and new product development performance. Analysis of the data revealed that companies which practice methods of knowledge retention and interpretation of new product development projects indirectly improve their performance of subsequent new product development projects by applying that prior knowledge.

Setting(s) to which the reported activities/findings are relevant: Large business, Small business (less than 500 employees)

Knowledge user(s) to whom the piece of literature may be relevant: Manufacturers, Researchers

Knowledge user level addressed by the literature: Organization

This article uses the Commercial Devices and Services version of the NtK Model

Primary Findings

Measure: Intertemporal integration five item scale was developed to measure a company's success at applying and benefiting from knowledge gained during prior new product development projects.

Model: Applying knowledge from prior new product development projects will likely result in more successful subsequent new product development projects.
Hypothesis was found to be significant (B =.44, p < .001)

Tips:

  • Sort, categorize and give meaning to knowledge in the company's current strategic context.
    The hypothesis that companies that engage in activities that enable the interpretation of knowledge in it's current strategic context will have higher levels of intertemporal integration was found to be true. (B = .40, p < .001)
    Occurrence of finding within the model: KTA Step 1.F, KTA Step 2.F, Step 9.3
  • Engage in practices such as, formal audits, newsletters, reports or seminars, which help retain knowledge developed from prior new product development projects.
    The hypothesis of companies promoting knowledge retention will have higher levels of intertemporal integration was found to be true. (B = .27, p < .05)
    Occurrence of finding within the model: KTA Step 1.F, KTA Step 2.F, Step 9.3

Secondary Findings

Barriers:

  • Obstacles to obtaining external information could stem from a company's inability to recognize, assimilate and apply external knowledge, poor absorptive capacity. (Cohen & Levinthal, 1990; Zahra & George, 2002)
    Occurrence of finding within the model: Step 4.11, Step 2.2, Step 1.2, Step 1.1
  • Documentation of external knowledge may not be in a useful format for finding a solution to the problem at hand. (Argote, 1999)
    Occurrence of finding within the model: Step 4.11, Step 2.2, Step 1.2, Step 1.1

Model: Use a platform strategy, where technologies are shared across multiple product development projects, to create greater sales, profitability and lower costs. (Meyer & Dalal, 2002; Nobeoka & Cusumano, 1997)