The relationship between governance and NPD performance and the mediating role of tie strength

Purpose – The purpose of this paper is to examine the impact of governance modes (trust and unilateral control) on new product development (NPD) performance and the mediating role of tie strength. Design/methodology/approach – Survey research was conducted to collect data from 112 NPD relationships and structural equation modeling was conducted to test the hypotheses. Findings – The results suggest that the trust and tie strength are positively related, while unilateral control and tie strength are negatively related. On the other hand, tie strength is positively related to NPD performance. Results also show that the impact of trust and unilateral control on NPD performance are mediated by the tie strength. Originality/value – This study enhances the understanding of NPD relationships by examining the key modes of governance through which tie strength and NPD performance are influenced.