The purpose of this paper is to develop a framework for understanding how problem formulation, information search and division of work in new product development (NPD) activities is shaped by mind sets vested in organizations with diverging positions in the value chain and correspondingly situated knowledge contexts. The authors aim to focus on how this influences the marketability of new product ideas.
The empirical data are derived from exploratory observation studies of NPD meetings and interviews of involved managers and specialists in three business dyads. The cases involve ingredient and meat suppliers, retail chains and marketing agencies located in Denmark.
The authors show that the scope and organization of NPD activities indeed are shaped by the combinations of situated knowledge contexts involved. An important intervening variable however concerns the atmosphere of the relationship, involving emotions and attitudes of the actors involved from foregone exchange situations.
For managers of NPD activities, the relationship between the knowledge contexts involved, the concept development outcomes and the marketability of new product ideas are important factors to take into consideration in organizing supplier or buyer involvement in NPD.
The value of the paper is primarily related to its empirical contexts and the findings.
