Who should wear the pants? An empirical investigation of functional decision-making authority in innovation development

Welle, Markus ; Kuester, Sabine ; Schuhmacher, Monika C.

DOI: https://doi.org/10.1142/S1363919621500195
URL: https://www.worldscientific.com/doi/10.1142/S13639...
Document Type: Article
Year of publication Online: 2020
The title of a journal, publication series: International Journal of Innovation Management : IJIM
Volume: tba
Page range: tba
Place of publication: Singapur [u.a.]
Publishing house: World Scientific
ISSN: 1363-9196 , 1757-5877
Publication language: English
Institution: Business School > ABWL, Marketing & Innovation (Kuester)
Subject: 330 Economics
Abstract: Effective decision-making in innovation development is decisive for innovation success, but also poses a major challenge for companies. Building on the information-processing view of organisational design, this study investigates how companies should organise functional decision-making authority in innovation development to engender innovation success. Additionally, this research explores the interplay between the design of functional decision-making authority and organisational innovativeness representing an aspect of organisational culture. Based on two datasets garnered from a survey and an experiment with managers experienced in innovation development, the study demonstrates that the dispersion of decision-making authority across functional groups positively affects the performance of an innovation. Further, the results reveal that environmental turbulence positively moderates the effect of the dispersion of decision-making authority on innovation performance. Finally, organisational innovativeness leads to a higher dispersion of decision-making authority. This study offers important implications for managers seeking to organise functional decision-making authority in innovation development more effectively.

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