Antecedents of Team Intuition and Its Impact on the Success of New Product Development Projects

Research on new product development (NPD) team decision making has identified a number of cognitive mechanisms (e.g., team intelligence, teamwork quality, and charged behavior) that appear to guide NPD teams toward effective decisions. Despite an extensive body of literature on these aspects of NPD team decisions, team intuition has yet to be investigated in the context of NPD teams. Intuition is regarded as a form of information processing that differs from cognitive processes, and is associated with gut feelings, hunches, and mystical insights. Past research on intuition suggests that many managers and teams embrace intuition as an effective approach in response to situations in a turbulent environment where decisions need to be made immediately. Past research also revealed various benefits of intuition in decision making. These are: to speed up decision-making process, to improve decision outcomes such as higher product quality, and to solve less structured problems (e.g., new product planning). This research examines the impact of team-related antecedents (e.g., team member experience) and decision-specific antecedents (e.g., decision importance) on intuition in NPD teams. The moderating impact of environmental turbulence between antecedent variables and intuition, as well as between intuition and team performance, is investigated. To test hypotheses, data were collected from 155 NPD projects in Turkey. The results showed that past team member experience, transactive memory systems (TMS), team empowerment, decision importance, and decision motives are significantly related to team intuition. The results also revealed that team intuition is significantly related to product success and speed-to-market, with both high and low levels of market turbulence. The findings of this study present some interesting practical implications to managers in order to improve intuitive skills of NPD teams. First, managers should make sure that team members have the relevant expertise to facilitate effective intuition. Second, managers should encourage and enhance TMS for effective intuition. If team members are not able to gain timely and unhindered access to others who have the needed experience and knowledge, past team member experience becomes idle in order to make effective intuitive judgments. Third, managers concerned with achieving successfully developed products and helping teams to make immediate but accurate decisions during NPD process should assign more power to team members so that they can rely on their intuitive skills.

[1]  E. Sadler‐Smith,et al.  The Role of Intuition in Strategic Decision Making , 2009 .

[2]  C. Anthony Di Benedetto,et al.  Antecedents and consequences of teamwork quality in new product development projects , 2009 .

[3]  Anthony Di Benedetto,et al.  Managerial Trust in New Product Development Projects: Its Antecedents and Consequences , 2009 .

[4]  M. Dayan,et al.  Procedural and interactional justice perceptions and teamwork quality , 2008 .

[5]  Ali E. Akgün,et al.  New product development team intelligence: Antecedents and consequences , 2008, Inf. Manag..

[6]  Abbie Griffin,et al.  The PDMA toolbook 3 for new product development , 2007 .

[7]  John Byrne,et al.  Antecedents and consequences of team potency in software development projects , 2007, Inf. Manag..

[8]  Scott Sonenshein The role of construction, intuition, and justification in responding to ethical issues at work: The sensemaking-intuition model , 2007 .

[9]  J. Child,et al.  The Influence of Decision, Environmental and Firm Characteristics on the Rationality of Strategic Decision-Making , 2007 .

[10]  J. Child,et al.  Influences on strategic decision effectiveness: Development and test of an integrative model , 2007 .

[11]  Stephen A. Leybourne,et al.  The role of intuition and improvisation in project management , 2006 .

[12]  Charles C. Manz,et al.  A cross‐cultural perspective of self‐leadership , 2006 .

[13]  S. Elbanna Strategic Decision-Making: Process Perspectives , 2006 .

[14]  A. Wozniak Managerial intuition across cultures: beyond a “West‐East dichotomy” , 2006 .

[15]  John Byrne,et al.  Transactive memory system in new product development teams , 2006, IEEE Transactions on Engineering Management.

[16]  John Byrne,et al.  Knowledge Networks in New Product Development Projects: A Transactive Memory Perspective , 2005, Inf. Manag..

[17]  E. Sadler‐Smith,et al.  The intuitive executive:Understanding and applying ‘gut feel’ in decision-making , 2004 .

[18]  P. Perrewé,et al.  Managerial decision-making under crisis: The role of emotion in an intuitive decision process , 2004 .

[19]  Ali E. Akgün,et al.  Organizational Learning: A Socio-Cognitive Framework , 2003 .

[20]  Rosanna Garcia,et al.  The Effects of Environmental Turbulence on New Product Development Strategy Planning , 2003 .

[21]  R. Scott Tindale,et al.  Shared Information, Cognitive Load, and Group Memory , 2002 .

[22]  G. Odekerken-Schröder,et al.  Investments in Consumer Relationships: A Cross-Country and Cross-Industry Exploration , 2001 .

[23]  M. Hoegl,et al.  Teamwork Quality and the Success of Innovative Projects , 2001 .

[24]  Zeynep Aycan,et al.  Human resource management in Turkey ‐ Current issues and future challenges , 2001 .

[25]  Rajesh Sethi,et al.  Structural and contextual correlates of charged behavior in product development teams , 2001 .

[26]  A. Mukherji,et al.  Interpreting, categorizing and responding to the environment: the role of culture in strategic problem definition , 2001 .

[27]  Richard R. Reilly,et al.  Knowledge Management in New Product Teams: Practices and Outcomes , 2000, IEEE Trans. Engineering Management.

[28]  Kate D. Abel,et al.  Practices that Support Team Learning and Their Impact on Speed to Market and New Product Success , 1999 .

[29]  Vassilis M. Papadakis,et al.  Strategic Decision Making: from Crisis to Opportunity , 1999 .

[30]  D. Chambers,et al.  Strategic decision-making processes: the role of management and context , 1998 .

[31]  Laura B. Cardinal,et al.  RETROSPECTIVE REPORTS IN ORGANIZATIONAL RESEARCH: A REEXAMINATION OF RECENT EVIDENCE , 1997 .

[32]  Anne S. Miner,et al.  The Impact of Organizational Memory on New Product Performance and Creativity , 1997 .

[33]  G. Spreitzer Social structural characteristics of psychological empowerment , 1996 .

[34]  D. Wegner A Computer Network Model of Human Transactive Memory , 1995 .

[35]  James W. Dean,et al.  PROCEDURAL RATIONALITY IN THE STRATEGIC DECISION‐MAKING PROCESS* , 1993 .

[36]  Barbara Townley,et al.  FOUCAULT, POWER/KNOWLEDGE, AND ITS RELEVANCE FOR HUMAN RESOURCE MANAGEMENT , 1993 .

[37]  Richard P. Bagozzi,et al.  Assessing Construct Validity in Organizational Research , 1991 .

[38]  H. P. Sims,et al.  SuperLeadership: Beyond the myth of heroic leadership , 1991 .

[39]  A. Bandura,et al.  Impact of conceptions of ability on self-regulatory mechanisms and complex decision making. , 1989, Journal of personality and social psychology.

[40]  J. Dutton,et al.  Discerning threats and opportunities. , 1988 .

[41]  James C. Anderson,et al.  STRUCTURAL EQUATION MODELING IN PRACTICE: A REVIEW AND RECOMMENDED TWO-STEP APPROACH , 1988 .

[42]  R. Cooper,et al.  New Products: What Separates Winners from Losers? , 1987 .

[43]  H. Simon,et al.  Making Management Decisions: the Role of Intuition and Emotion , 1987 .

[44]  W. Agor The logic of intuition: How top executives make important decisions , 1986 .

[45]  P. M. Podsakoff,et al.  Self-Reports in Organizational Research: Problems and Prospects , 1986 .

[46]  J. Dutton THE PROCESSING OF CRISIS AND NON‐CRISIS STRATEGIC ISSUES , 1986 .

[47]  Richard L. Daft,et al.  Organizational information requirements, media richness and structural design , 1986 .

[48]  J. Fredrickson Effects of Decision Motive and Organizational Performance Level on Strategic Decision Processes , 1985 .

[49]  R. Kanfer,et al.  Equivalence of psychological measurement in heterogeneous populations. , 1985, The Journal of applied psychology.

[50]  L. James,et al.  Estimating within-group interrater reliability with and without response bias. , 1984 .

[51]  R. Schuler,et al.  Organizational Crisis. Part II: Strategies and Responses , 1983 .

[52]  Sidney G. Winter,et al.  Attention allocation and input proportions , 1981 .

[53]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[54]  Gilbert A. Churchill A Paradigm for Developing Better Measures of Marketing Constructs , 1979 .

[55]  Henry Mintzberg,et al.  The Structure of "Unstructured" Decision Processes , 1976 .

[56]  H. Simon,et al.  A Behavioral Model of Rational Choice , 1955 .

[57]  Erik Dane,et al.  Exploring Intuition and its Role in Managerial Decision Making , 2007 .

[58]  Michael K. Mauws,et al.  The Politics of Organizational Learning: Integrating Power into the 4I Framework , 2005 .

[59]  Norman L. Eckel,et al.  Making sense out of intuition , 1991 .

[60]  Frances J. Milliken Three Types of Perceived Uncertainty About the Environment: State, Effect, and Response Uncertainty , 1987 .

[61]  D. Wegner Transactive Memory: A Contemporary Analysis of the Group Mind , 1987 .

[62]  D. Wegner,et al.  Cognitive interdependence in close relationships , 1985 .