A Theoretical Framework for Managing the NPD Portfolio: When and How to Use Strategic Buckets

摘要: Developing the "right" new products is critical to firm success and often cited as a key competitive dimension. This paper explores product development (NPD) portfolio strategy balance between incremental radical innovation. We characterize innovative effort through normative theoretical framework that addresses popular practice in NPD management: use of strategic buckets. Strategic buckets encourage division overall resource budget into smaller, more focused budgets are defined by type (incremental or radical). show time commitment determines When managers execute this balance, they confounded by: (i) environmental complexity, number unknown interdependencies among technology market parameters determine performance; (ii) instability, probability changes underlying performance functions. Although both these factors confound managers, we find have completely opposite effects on balance. Environmental complexity shifts toward Conversely, instability Risk considerations implications for theory also discussed.