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      Examining proactive strategic decision-making flexibility in new product development

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      Author
      Kandemir, D.
      Acur, N.
      Date
      2012
      Source Title
      Journal of Product Innovation Management
      Print ISSN
      0737-6782
      Publisher
      Wiley-Blackwell Publishing
      Volume
      29
      Issue
      4
      Pages
      608 - 622
      Language
      English
      Type
      Article
      Item Usage Stats
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      357
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      Abstract
      While strategic flexibility is widely accepted as a prerequisite for a firm's success, its application in strategic decision making to a firm's new product development (NPD) activities is limited to only a few studies. Furthermore, many organizations still have difficulties creating proactive strategic flexibility in their decision-making processes. Past research studies have largely ignored the relationship between strategic decision-making flexibility and firms' resources and/or capabilities and success in the context of NPD. This study advances strategic flexibility by adopting the proactive approach of NPD decision-making flexibility and by examining its role in translating organizational resources and capabilities into NPD success. This study draws upon the resources, capabilities (i.e., flexibility), and performance framework to show how proactive strategic decision-making flexibility plays a crucial role in developing new products that can create new opportunities and comply with market needs. Therefore, this research aims to (1) develop an operational definition of strategic decision-making flexibility and (2) propose a framework to understand the drivers and the subsequent new product performance outcomes of strategic decision-making flexibility. This study adopts the proactive perspective of strategic decision-making flexibility and defines it as a capability that enables firms to develop NPD strategies to respond to future changes in the environment. The analysis, based on data collected from 103 European firms, shows that that the effects of long-term orientation, strategic planning, internal commitment, and innovative climate on proactive strategic decision-making flexibility are significant. The findings indicate specifically the roles of both champions and gatekeepers, who infuse a firm's knowledge with a clear understanding of its resources, constraints, and market needs, thereby enhancing decision makers' motivation to behave proactively to precipitate transformation. The results also reveal a positive association between proactive strategic decision-making flexibility and NPD performance outcomes. As such, strategic flexibility provides firms with an ability to adapt to changing environments and to create new market opportunities, product, and technological arenas, and to deliver successful new products. When firms open new market, technological, and product arenas, they can easily foresee their new demands and changes and successfully deliver new products, meeting customer needs/demands, and offering benefits such as quality, cost, and timeliness. This study therefore provides a valuable reference point for future research in strategic decision-making flexibility in NPD.
      Keywords
      Changing environment
      Customer need
      Decision makers
      Decision making process
      Long-term orientation
      Market needs
      Market opportunities
      New product
      New product development
      New product performance
      Operational definition
      Performance outcome
      Pro-active approach
      Reference points
      Research studies
      Strategic decision making
      Strategic flexibility
      Commerce
      Decision making
      Industry
      Research
      Product development
      Permalink
      http://hdl.handle.net/11693/21415
      Published Version (Please cite this version)
      http://dx.doi.org/10.1111/j.1540-5885.2012.00928.x
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