Dynamism and complexity as antecedents of the knowledge strategy in product development

Abstract

Focusing on product development, this study extends the understanding of the environment-strategy framework and investigates the relative effect of two classical environmental variables, dynamism and complexity, on the knowledge strategy. Adopting a knowledge-based view, and assuming that the strategy´s locus is knowledge creation -exploration- and knowledge application -exploitation-, the study suggests that the development of a knowledge strategy is a managerial strategic choice that is related to the environment. The results of a survey on product development managers indicate that product development efforts operating in highly dynamic environments mostly pursue exploratory strategies.