New service development in high tech sectors: a decision making perspective

Many service companies active in high tech sectors have implemented largely decentralized decision architectures in their innovation processes. This is done to improve responsiveness under extremely dynamic and uncertain business conditions. As a consequence of the empowerment of decision-makers at the product management level, the success of the New Service Development (NSD) process will increasingly depend on individual product managers’ information processing and decision-making performance. The present study investigates antecedents of decision-making effectiveness in the high tech NSD process, and reports on a case study performed in the mobile telecommunication services industry. NSD project managers’ unique task conditions are articulated, and some antecedents and moderators of effective decision-making are identified in a study of four innovation projects. Findings are integrated in a theoretical framework. The study reveals the crucial role of decision-makers’ flexible use of various cognitive styles, their proactive attitude, and their capability to mentally represent innovation interfaces with the customer, the technology and the firm. Managerial implications and suggestions for further research are provided.