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Information source exploitation/exploration and NPD gate decisions
by Kristina Risom Jespersen
International Journal of Technology Intelligence and Planning (IJTIP), Vol. 6, No. 3, 2010
Abstract: The purpose of this study is to examine how the exploration/exploitation continuum is applied by decision makers in new product gate decision making. Specifically, we analyse at gate decision-points how the evaluation of a new product project is affected by the information source exploitation/exploration search behaviour of decision makers. In addition, overexploitation and overexploration in New Product Development (NPD) decision making are investigated through mediating effects of perceived information usefulness and applied performance criteria by decision makers at gates. Our findings lead to the conclusion that NPD gates are affected by decision-makers' information source exploitation and exploration. The managerial (mis)behaviour is caused by a combination of underdeveloped individual information competences and organisational routinisation of internal innovation performance criteria.
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