Effectuation-causation: what happens in new product development?

Abstract

Purpose

The literature provides contradictory findings on planning contradictory findings on planning as a success factor in projects which entail high innovation. Nevertheless, new product development (NPD) research has mainly adopted the causation lens, in which planning plays an important role. By embracing the logic of effectuation, the purpose of this paper is to secure a wider perspective concerning how the various NPD options develop, taking into account the role played by uncertainty.

Design/methodology/approach

By adopting an inductive approach, the authors attempt to advance existing knowledge on the topic. The qualitative methodology (documentary analysis, content analysis and alternate templates) is adopted for the analysis of four NPD projects in the food industry in Spain.

Findings

Results reflect the relevance of the two perspectives considered when explaining the NPD process, with the presence of hybrid behaviour in all the projects and effectuation emerging as the dominant logic in the project linked to a greater degree of innovation and uncertainty.

Research limitations/implications

Projects involving varying degrees of innovation would seem to require different NPD approaches. This paper provides an initial approach to the subject, and it analyses a small number of firms. It is necessary to better understand to what extent the two logics are present in different types of projects.

Practical implications

By incorporating the logic of effectuation, firms might consider using NPD as a means of engaging in projects that entail a higher degree of innovation, since it offers ways of dealing with the uncertainty linked to such projects.

Originality/value

The paper contributes to the still early efforts to apply the perspective of effectuation to the area of NPD, by linking the logics of effectuation and causation to the various NPD processes taking account of their varying degrees of innovation and uncertainty (exploitation, exploration and leverage options).

Citation

Ortega, A.M., García, M.T. and Santos, M.V. (2017), "Effectuation-causation: what happens in new product development?", Management Decision, Vol. 55 No. 8, pp. 1717-1735. https://doi.org/10.1108/MD-03-2016-0160