Arguing that organizational memory affects key new product development processes by influencing the interpretation of incoming information and the performance of new product action routines, a study introduces 4 dimension of organizational memory, including the amount and dispersion of memory. Data from 92 new product development projects indicate that higher organizational memory levels enhance the short-term financial performance of new products, whereas greater memory dispersion increases both the performance and creativity of new products. It is also found that under some conditions of high environmental turbulence, high memory dispersion actually detracts from creativity and has no effect on financial performance. Under conditions of low turbulence, high memory dispersion promotes higher levels of creativity and short-term financial performance. The findings provide initial evidence that knowledge is not an unconditionally positive asset.

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