Numerous publications are dedicated to absorptive capacity and new product development (NPD). Most are centered on the recipient team, and very few consider the effects of the source team knowledge characteristics on the knowledge absorption and the NPD performance. This paper analyzes the type of the external knowledge sourced from outside the organization and the process through which it is used by the recipient firm and the effect on NPD performance. This is done through a specific type of source team knowledge, the design, and through the NPD process in industries (clothing and construction) where it plays a key role. NPD cases were analyzed and clustered in three categories of design absorption processes. From these categories, a conceptual framework of the source-recipient knowledge complementarity and its impact on the NPD performance is proposed. The main result is that the complementarity between the recipient and the source knowledge is a critical aspect of the absorption process and therefore of the NPD performance. From a managerial perspective, this research highlights the role of design in the NPD process and how the combination of design knowledge with prior knowledge (marketing or technological) is related to NPD performance.

International audienceIn the 'knowledge economy', knowledge-intensive business services (KIBS) are a key driver for innovation and competitiveness. The internationalization of these businesses raises challenges given their specificities such as knowledge intensity, the importance of customer interaction and intimacy in service delivery. This paper focuses on design consultancies as a specific type of creative KIBS for which these characteristics are emphasized. The objective of this research is to analyse the resources leveraged by the firms to compete internationally. It is based on 11 case studies of design consultancies located in five different countries (France, Italy, Portugal, Spain and the UK) that were selected for their capacity to perform at the international level for several years. The paper advances three internationalization modes depending on contingent variables and focusing on specific resources that enable international competitiveness: star-based, process-based and glocality-based. In star-based creative KIBS, the individual designer has developed a reputation that attracts customers internationally, operating as a brand. In process-based creative KIBS, the reputation of a collective creative process attracts clients from other countries. In glocality-based creative KIBS, the geographical proximity obtained by opening international offices helps to develop a close understanding of the client through frequent interactions, and also to know the client's market well and to better understand local codes and signs. These modes complement those presented in the existing internationalization literature which takes the peculiarities of creative KIBS into consideration. [ABSTRACT FROM AUTHOR

This study analyzes why firms use both internal and external design, and attempts to understand the determinants of design architecture choices. It is based on the design literature that analyzes the compared benefits of internal, external, and combined design, and it mobilizes the concept of vertical architecture that designates at the level of the firm the configurations of transactional choices along the firm's value chain. The research methodology follows an exploratory multiple case study of fashion triads (manufacturer, designer, and retailer) theoretically sampled according to the design position (internal, external, or combination) relative to the manufacturer and retailer. Data were collected through face‐to‐face interviews and archival documents. The 31 triad cases were clustered into five industry architectures (IAs). The IAs are characterized as follows. Designer‐led architecture, in which the three players are independent, offers an advantage in terms of branding and creativity. Manufacturer‐led architecture, in which design is internal to the manufacturer, is recognized in terms of cost‐effectiveness and speed of development process. Retailer‐led architecture, in which design is internal to retail, offers advantages in terms of speed of development process and fit with market needs. Finally, the two hybrid architectures—licensing designer and designer retailer cobranding—with a combination of internal and external design are recognized in terms of cobranding and innovation. Through this process, the authors identify three determinants of design architecture choices (efficiency, level of fashion innovativeness, and innovation type) that can be grouped into two main opposing determinants: efficiency and innovativeness. Internal design offers greater efficiency, whereas external design provides increased innovativeness. Efficiency and innovation act in tension, there is no IA that offers both high efficiency and high innovativeness, there is a trade‐off effect. But the tension between efficiency and innovativeness can be reconciled by combining internal and external design. Unlike prior literature, this research analyzes vertical choices with regard to choosing among a menu of IAs instead of transactions, and focuses on a distinctly creative activity. External design also offers an “ingredient brand” that end customers may recognize. The authors propose additional research for the generalization of these results.

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Marketing often cooperates with external design in the new product development (NPD) process. While this relationship is crucial for NPD success and is a typical case of interorganizational collaboration between a business‐oriented function (marketing) and a creative partner (external design), a comprehensive understanding of this relationship remains lacking. As the NPD field evolves to open systems that have changed concepts like functional integration into interorganizational integration, this study contributes to NPD literature by developing an integrated conceptual framework leading to a model of drivers and pathways of NPD success in the marketing–external design relationship. Building on the literature on NPD, design management and relationship marketing, and on nine dyadic case studies from the luxury fragrance and cosmetics industry, a content analysis was conducted, enriched by a crisp‐set qualitative comparative analysis (QCA). This research confirms several NPD success drivers suggested in the literature and reveals three new drivers: source of design expertise, designer brand commitment, and number of NPD stages involving designer. The first new driver (source of design expertise) impacts the relationship process, which then impacts NPD success, while the other two drivers (designer brand commitment, and number of NPD stages involving designer) directly influence NPD success. The paper also identifies the pathways of NPD success, showing that contact authority and designer brand commitment are necessary conditions for NPD success, especially when combined with a high number of NPD stages involving designer or a previous relationship. The results also indicate that pathways of NPD success may differ according to the source of design expertise. From a managerial perspective, this study provides recommendations to managers to select the right design partner and choose from a range of drivers and pathways to devise more effective ways to work with external designers, thereby leading to NPD success.