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The Impact of Empowerment on the Speed in New Product Development: The Role of Uncertainty |
CHEN Ji-Yao, Richard R Reilly, Gary S Lynn |
Stevens Institute of Technology Hoboken Wesley J. Howe School of Technology Management, New Jersey,USA |
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Abstract A recent theoretical analysis argued that the effectiveness of empowerment is contingent upon the degree of uncertainty in the environment. In a study of 212 New Product Development (NPD) projects, we found that the relationship between team empowerment and speed to market was moderated by uncertainty stemming from technological turbulence but not by uncertainty related to technological novelty. Further,we found that the relationship was a Ushaped function under conditions of low uncertainty whether the source was novelty or turbulence. The findings imply that NPD teams should be either not empowered or fully empowered under conditions of low uncertainty. In contrast,when uncertainty was high the empowerment speed relationship differed depending upon the source of the uncertainty. Under conditions of high technological novelty a linear relationship between empowerment and speed was found,but under conditions of high technological turbulence the relationship was reverse U-shaped. Under the latter conditions, a quadratic function indicated that very high levels of empowerment do notreresult in increasing speed-to-market. Thus,a contingent view should apply to choose and implement the empowerment approach. Our findings also indicate that turbulence may be a more important source of uncertainty than newness with different implications for empowerment.
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Received: 20 February 2006
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