New service development in high tech sectors: A decision‐making perspective

Service companies in high tech sectors frequently implement decentralized decision architectures in their innovation processes to improve responsiveness under extremely dynamic and uncertain business conditions. As a corollary to the empowerment of decision makers at the product management level, the success of new service development projects depends increasingly on individual managers’ information processing and decision‐making performance. This article investigates antecedents of decision‐making effectiveness in high tech NSD projects, and report on a case study performed in the mobile telecommunication services industry. NSD managers’ unique task conditions are articulated, and antecedents and moderators of effective decision making are identified in a study of four innovation projects. A theoretical framework integrates the findings. The study reveals the crucial role of decision makers’ flexible use of various cognitive strategies, their proactive attitude, and their capability to mentally represent various interfaces between service, customer, technology and firm. Managerial implications and suggestions for further research are provided.