WHO SHOULD WEAR THE PANTS? AN EMPIRICAL INVESTIGATION OF FUNCTIONAL DECISION-MAKING AUTHORITY IN INNOVATION DEVELOPMENT

Markus Welle (), Sabine Kuester and Monika C. Schuhmacher ()
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Markus Welle: University of Mannheim, L5, 1, 68131 Mannheim, Germany
Sabine Kuester: University of Mannheim, L5, 1, 68131 Mannheim, Germany
Monika C. Schuhmacher: #x2020;Justus Liebig University of Gießen, Licher Straße 62, 35394 Gießen, Germany

International Journal of Innovation Management (ijim), 2021, vol. 25, issue 02, 1-28

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.

Keywords: Innovation; organisational design; culture; decision-making; authority; environment (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1142/S1363919621500195

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