Pricing capability and new product performance: a moderated moderation effects of managerial ties and organizational learning

Purpose The purpose of this study is to develop a moderated moderation model investigating the contingent effects of two managerial ties, namely, political ties (PT) and business ties (BT), on the relationship between pricing capability (PC) and new product performance (NPP). It further examines whether and how exploitative and exploratory organizational learning approaches undermine or promote the effectiveness of PT and BT. Design/methodology/approach Hierarchical moderated regression analysis was applied on a time-lag two-wave survey of 468 cross-industry small and medium-sized enterprises (SMEs) functioning in India. Findings The empirical findings discover a positive relationship between PC and NPP, with BT strengthening and PT weakening the relationship. Interestingly, combining political and BT exhibits a negative moderating influence on the relationship between PC and NPP. Besides, exploitative learning (ETL) and exploratory learning play distinct and significant roles in shaping the moderating influences of political and BT on the relationship between PC and NPP. Research limitations/implications The research findings have certain limitations such as using a subjective measurement scale for research variables, focusing on Indian SMEs and ignoring environmental turbulence on the link between PC and NPP. Practical implications The findings offer guidance to managers on how PC generates superior NPP when aligned with ETL and PT. Originality/value Despite the rising debate regarding the role of pricing skills in the successful commercialization of new products, few researchers have attempted to analyze the boundary conditions under which PC influences the utmost NPP.