Abstract:

Several transformations in the digital economy have introduced complexity and dynamicity in the competitive environment of different firms. Continuous and effective innovation is considered to be the major source of sustained competitive advantage. A new framework of business seems to be at work: the emergence of enterprises working together in intimate and trust based relationships to develop, produce and deliver complex products, through using Information and Communication Technologies (ICTs). These emergent business models are deemed to be new open business frameworks, able to address the rising development costs and shorter product life cycles of the new products, through a greater integration of external technology in their own innovation processes. Based on the resource-based and the knowledge-based views of the firm, this paper describes the Extended Enterprise’s (EE) pillars and highlights the importance of knowledge management (KM) and relationship management (RM) for successful new product development (NPD) process. Further, the authors argue that KMS plays a key role in enhancing the capabilities of the EE.