High‐Technology Service Innovation Success: A Decision‐Making Perspective

Abstract

Successful innovation is crucial for firm survival in high‐technology service industries. This article reports on an empirical study, exploring internal innovation success factors—success factors associated with the innovating firm's competencies—by taking a decision‐making perspective. The likelihood of innovation success is associated with the systematic reduction of decision‐making uncertainty, as a result of organizational information gathering, diffusion, and processing activities. Effects of interfirm differences are investigated in the new service development phase of the innovation process. Cross‐sectional data were collected about 251 innovation projects from companies in Europe, the United States, and Japan. Innovation success is found to be related positively and directly to how well informed and knowledgeable decision‐makers are. Furthermore, the study provides evidence that a market orientation contributes as an internal success factor: An organizational climate favorable to information sharing powerfully mediates the positive effects of intelligence gathering with respect to customers and technology. The effects of competitor orientation carry a negative sign, and managerial seniority appears not to play a major role in this turbulent business. Managerial and research implications are provided.