We argue that in today’s fast-moving business environment characterized by scarcity, change and plurality, the traditional perspectives on New Product Development--NPD (rational plan, communication web, disciplined problem-solving) should be complemented with a paradox perspective which harnesses the value of contradictory yet interdependent elements that persist over time. We utilize the paradox framework of Smith & Lewis (2011) to examine how the four pairs of ‘paradoxical practices’ (performing, organizing, learning and belonging) they identify are associated with NPD performance (product effectiveness and process efficiency). Further, we also argue that country context moderates the effectiveness with which paradoxical practices facilitate innovation. Using empirical data from multiple respondents to a survey of 200 Chinese firms and 164 Nordic firms (Finland & Sweden), the results indicate that the performing paradoxical practice is positively related to product effectiveness, whereas the organizing paradoxical practice is positively linked to process efficiency. Moreover, the learning paradoxical practice is positively linked to both product effectiveness and process efficiency. Finally, the moderating role of country context is significant in several of our analyses, indicating that Chinese firms are better able to deal with paradoxical tensions present in new product development than Nordic firms.

wlucy2@ceibs.edu