Exploring the Relationship between Firm Capabilities and New Product Performance: An Empirical Investigation

Abstract

This study examines the intricate relationship between firm capabilities and new product performance, aiming to elucidate the mechanisms through which organizational resources, competencies, and strategic capabilities influence the success of innovation endeavors. Employing a mixed-methods approach, including quantitative analysis and qualitative insights, the research investigates the diverse dimensions of firm capabilities, such as technological expertise, market knowledge, R&D investments, and organizational agility, and their impact on various aspects of new product performance, including market success, customer acceptance, and financial outcomes. Drawing upon data collected from a sample of firms across different industries, the study explores the mediating and moderating effects of contextual factors, such as industry dynamics, competitive intensity, and market turbulence, on the relationship between firm capabilities and new product performance. Moreover, it examines the role of internal and external drivers of capability development, including innovation strategies, collaboration networks, and knowledge integration mechanisms, in shaping firms' ability to translate their capabilities into superior performance in the marketplace. The findings offer valuable insights for managers, policymakers, and scholars seeking to enhance the effectiveness of innovation strategies and resource allocation decisions, thereby improving the competitiveness and sustainability of firms in dynamic and uncertain environments.