Successful execution of product development projects: Balancing firmness and flexibility in the innovation process

This paper investigates project management methods used during the execution phase of new product development projects. Based on prior field observations, organizational theory and product development literature, we pose hypotheses regarding the effectiveness of the project execution methods of formality, project management autonomy and resource flexibility. A cross-sectional survey sample of 120 completed new product development projects from a variety of assembled products industries is analyzed via hierarchical moderated regression. We find that the project execution methods are positively associated with project execution success. Further, these methods are effective singly and collectively, suggesting that firms can ‘‘balance firmness and flexibility’’ in product development via appropriate execution methods. Surprisingly, the effectiveness of these methods is not contingent on the product or process technology novelty inherent in a given development project. The findings suggest that firms should adopt high levels of these approaches, and that a variety of projects can be managed using broadly similar project execution methods. The findings also suggest limitations on the application of organizational information processing theory to the context of product development projects. Directions for additional theory development are outlined. q 2000 Elsevier Science B.V. All rights reserved.