Theoretical background and hypotheses

4 important questions on Theoretical background and hypotheses

How are incremental innovation projects typically characterized?

By relatively low levels of uncertainty. In such circumstances, task interdependence levels are likely to be relatively low, reducing the need for participative coordination structures.

Which structure is more appropriate?

Radical innovation asks for cross-functional structure
Incremental innovation for functional structure.

Why should cross-functional teams be less beneficial for NPD projects of a more incremental nature?

Because bringing together members of diverse backgrounds also leads to conflicting expectations and an excess of opinions from different individuals. This might lead to disruption of existing work routines and difficult decision making, which in turn hampers the ability for continuous optimization and refinement of existing products and technologies.
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How can a company excel in both improving existing products and generating new products?

By engaging in different kinds of innovation activities.
Exploitative activities such as optimization, standardization, and refinement are linked to derivative innovation performance, whereas explorative activities such as fundamental research, experimentation, and search are connected to breakthrough innovation performance.

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