Stakeholder's Influences on Product Design Decisions with Exogenous Uncertainty

32 Pages Posted: 29 May 2010

See all articles by Zhijian Cui

Zhijian Cui

IE Business School, Operations and Technology Management

Date Written: May 28, 2010

Abstract

This study examines how stakeholders exert an influence on product design decisions in the presence of exogenous uncertainty. Hitherto, research has traditionally viewed firms as one entity, and has prescribed an "optimal"' product design decision at firm level. Inspired by field studies at Nokia and Philips, our research seeks to open the "black box"' of R&D organizations by comparing design outputs in various situations of decision power distribution and task priority. It studies a fundamental yet often overlooked conflict in the team: the organization's task priority and the team leader's position power (project finalization). It also quantifies two types of personal cost related with stakeholders in development teams and identifies the organizational factors which lead to project termination. Simple empirical test is used to support our insights.

Keywords: New Product Development, Stakeholder Management, R&D Organizations, Decision-Making Process, Two-Sided Incomplete Information

Suggested Citation

Cui, Zhijian, Stakeholder's Influences on Product Design Decisions with Exogenous Uncertainty (May 28, 2010). Available at SSRN: https://ssrn.com/abstract=1617280 or http://dx.doi.org/10.2139/ssrn.1617280

Zhijian Cui (Contact Author)

IE Business School, Operations and Technology Management ( email )

Finance Department
Castellon de la Plana, 8
Madrid, 28006
Spain

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