Technology-based service proposal screening and decision-making effectiveness

Purpose – Decision‐making in early stages of technology‐based service (TBS) innovation projects proves to be challenging. Current failure rates in service innovation are high, while the investments in innovation projects are substantial. Research suggests that enhancing decision‐making in the screening stage could substantially increase success rates. By investigating the screening decision process from an information processing perspective, this article aims to identify antecedents of effective TBS screening decision‐making, and could thus help companies to enhance their decision‐making and reduce innovation project failure rates.Design/methodology/approach – Reviewing literature regarding service innovation, new product screening and decision‐making under uncertainty, we identify antecedents of decision‐making effectiveness in the TBS screening stage. Hypotheses are developed and tested with data from 251 TBS innovation projects.Findings – The study demonstrates the importance of decision‐making team co...

[1]  Robert G. Cooper,et al.  Portfolio Management in New Product Development: Lessons from the Leaders-I , 1997 .

[2]  Chris Storey,et al.  New service development: initiation strategies , 2000 .

[3]  Allard C. R. van Riel,et al.  Increasing New Product Proposal Screening Performance through Transactive Memory Systems: A Field Study (forthcoming) , 2012 .

[4]  HERBERT A. SIMON,et al.  The Architecture of Complexity , 1991 .

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

[6]  Mary Jo Bitner,et al.  Tracking the evolution of the services marketing literature , 1993 .

[7]  Bryan A. Lukas,et al.  Successful invention management: Formalizing the generation and validation of new product ideas , 1998 .

[8]  Richard Staelin,et al.  Pulling the Plug to Stop the New Product Drain , 1997 .

[9]  Rene Cordero,et al.  The measurement of innovation performance in the firm: An overview , 1990 .

[10]  Rudolf R. Sinkovics,et al.  The Use of Partial Least Squares Path Modeling in International Marketing , 2009 .

[11]  Anne P. Massey,et al.  New Product Development Decision-Making Effectiveness: Comparing Individuals, Face-To-Face Teams, and Virtual Teams , 2001, Decis. Sci..

[12]  C. Storey,et al.  The Impact of the New Product Development Project on the Success of Financial Services , 1993 .

[13]  Kenneth B. Kahn,et al.  PERSPECTIVE: Trends and Drivers of Success in NPD Practices: Results of the 2003 PDMA Best Practices Study* , 2009 .

[14]  Les Gasser,et al.  A Design Theory for Systems That Support Emergent Knowledge Processes , 2002, MIS Q..

[15]  Robert G. Cooper,et al.  Overhauling the new product process , 1996 .

[16]  C. Moorman.  Organizational Market Information Processes: Cultural Antecedents and New Product Outcomes , 1995 .

[17]  Robert G. Cooper,et al.  Selecting Winning New Product Projects: Using the NewProd System , 1985 .

[18]  R. Cooper,et al.  2 New Product Performance: What Distinguishes the Star Products , 2000 .

[19]  Abbie Griffin,et al.  Modeling market information processing in new product development: An empirical analysis , 2006 .

[20]  Kenneth G. Baker,et al.  Modeling New Product Screening Decisions , 1986 .

[21]  Frido Smulders,et al.  Co-Operation in NPD: Coping with Different Learning Styles , 2004 .

[22]  R. Cooper.  Third‐Generation New Product Processes , 1994 .

[23]  R. Verganti.  Leveraging on systemic learning to manage the early phases of product innovation projects , 1997 .

[24]  Lars Haglund,et al.  Analysis Planning, Improvisation and Control in the Development of New Services - some Swedisch experiences , 1995 .

[25]  Naresh K. Malhotra,et al.  Common Method Variance in IS Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research , 2006, Manag. Sci..

[26]  R. Moenaert,et al.  New Service Teams as Information-Processing Systems , 2000 .

[27]  Monique A. Pelletier,et al.  Foundations of strategic decision effectiveness , 1998 .

[28]  A. R. Ilersic,et al.  Research methods in social relations , 1961 .

[29]  Ulrike de Brentani.  Do firms need a custom-designed new product screening model? , 1986 .

[30]  L. Cooper.  A research agenda to reduce risk in new product development through knowledge management: a practitioner perspective , 2003 .

[31]  Aleda V. Roth,et al.  Antecedents of New Service Development Effectiveness , 2000 .

[32]  Roger Calantone,et al.  Using the Analytic Hierarchy Process in New Product Screening , 1999 .

[33]  Erik Jan Hultink,et al.  Navigating the new product development process , 2004 .

[34]  Scott M. Davis,et al.  Bringing innovation to life , 1997 .

[35]  Ian Alam,et al.  Innovation Strategy, Process and Performance in the Commercial Banking Industry , 2003 .

[36]  J. Scott Armstrong,et al.  Estimating nonresponse bias in mail surveys. , 1977 .

[37]  C. Bartlett,et al.  Beyond the M-form: toward a managerial theory of the firm , 1993 .

[38]  J. Lemmink,et al.  High‐Technology Service Innovation Success: A Decision‐Making Perspective , 2004 .

[39]  A. Johne,et al.  New service development: a review of the literature and annotated bibliography , 1998 .

[40]  J. Ende,et al.  The Organization of Innovation in the Presence of Networks and Bandwagons in the New Economy , 2001 .

[41]  Rajesh Sethi,et al.  Stage-Gate Controls, Learning Failure, and Adverse Effect on Novel New Products , 2008 .

[42]  Mitzi M. Montoya,et al.  Exploring New Product Development Project Review Practices , 2009 .

[43]  D. Kolb,et al.  Experiential Learning Theory: Previous Research and New Directions , 2000 .

[44]  H. Droege,et al.  Innovation in services: present findings, and future pathways , 2009 .

[45]  H. Simon,et al.  The sciences of the artificial (3rd ed.) , 1996 .

[46]  Jacob Cohen,et al.  A power primer. , 1992, Psychological bulletin.

[47]  P. Vermeulen,et al.  Organizing successful new service development: a literature review , 2003 .

[48]  Herbert A. Simon,et al.  The Sciences of the Artificial , 1970 .

[49]  M. Augier,et al.  Administrative Behavior: A Study of Decision‐Making Processes in Administrative Organizations , 2002 .

[50]  R. Cooper.  Perspective third-generation new product processes , 1994 .

[51]  Robert G. Cooper,et al.  How Companies are Reinventing Their Idea-to-Launch Methodologies , 2009 .

[52]  R. Moenaert,et al.  Linking communication to innovation success in the financial services industry: a case study analysis , 1999 .

[53]  J. Hair.  Multivariate data analysis , 1972 .

[54]  Brenda L. Rinholm,et al.  New Product Management Practices of Small High Technology Firms , 1989 .

[55]  C. Easingwood,et al.  Evaluation of New Financial Services , 1990 .

[56]  Melissa A. Schilling,et al.  Managing the new product development process: Strategic imperatives , 1998 .

[57]  Jonathan Baron,et al.  Ambiguity and rationality , 1988 .

[58]  David Dequech.  Bounded Rationality, Institutions, and Uncertainty , 2001 .

[59]  F. Damanpour.  Organizational Innovation: A Meta-Analysis Of Effects Of Determinants and Moderators , 1991 .

[60]  H. Keith Hunt,et al.  An Attitude Approach to the Prediction of Entrepreneurship , 1991 .

[61]  S. Hart,et al.  Industrial companies' evaluation criteria in new product development gates , 2003 .

[62]  E. Hultink,et al.  The Role of Predevelopment Activities in the Relationship between Market Orientation and Performance , 2004 .

[63]  R. Cooper,et al.  Portfolio management for new product development: results of an industry practices study , 2001 .

[64]  A. Griffin,et al.  PDMA Success Measurement Project: Recommended Measures for Product Development Success and Failure , 1996 .

[65]  Kenneth B. Kahn.  The PDMA Handbook of New Product Development , 1996 .

[66]  Pilar Carbonell,et al.  Technology Newness and Impact of Go/No-Go Criteria on New Product Success , 2004 .

[67]  A. Lievens,et al.  New service development in high tech sectors: a decision making perspective , 2003 .

[68]  Tim Ambler,et al.  Brand development versus new product development: toward a process model of extension decisions , 1997 .

[69]  Susan E. Reid,et al.  The Fuzzy Front End of New Product Development for Discontinuous Innovations: A Theoretical Model , 2004 .

[70]  Melissa A. Schilling.  Strategic Management of Technological Innovation , 2004 .

[71]  F. Johne,et al.  Success Factors in Product Innovation: A Selective Review of the Literature , 1988 .

[72]  Wafa Hammedi,et al.  Antecedents and consequences of reflexivity in new product idea screening , 2011 .

[73]  I. Alam.  Removing the fuzziness from the fuzzy front-end of service innovations through customer interactions , 2006 .

[74]  R. Cooper,et al.  An Investigation into the New Product Process: Steps, Deficiencies, and Impact , 1986 .

[75]  Teresa M. Pavia,et al.  The Early Stages of New Product Development in Entrepreneurial High-Tech Firms , 1991 .

[76]  Ulrike de Brentani,et al.  Determinants of the new product screening decision A structural model analysis , 1988 .

[77]  A. Tversky,et al.  Variants of uncertainty , 1982, Cognition.

[78]  C. Benedetto.  Identifying the key success factors in new product launch , 1999 .

[79]  Chris Storey,et al.  Marketplace success factors for new financial services , 1993 .