Technology-based service proposal screening and decision-making effectiveness

Purpose: Decision-making in early stages of technology-based service (TBS) innovation projects proves to be challenging. Current failure rates in service innovation are high, while the investments in innovation projects are substantial. Research suggests that enhancing decision-making in the screening stage could substantially increase success rates. By investigating the screening decision process from an information processing perspective, this article aims to identify antecedents of effective TBS screening decision-making, and could thus help companies to enhance their decision-making and reduce innovation project failure rates. Design/methodology/approach: Reviewing literature regarding service innovation, new product screening and decision-making under uncertainty, we identify antecedents of decision-making effectiveness in the TBS screening stage. Hypotheses are developed and tested with data from 251 TBS innovation projects. Findings: The study demonstrates the importance of decision-making team composition, information use and decision perspective for innovation success. Decision-maker experience and perspective mediate effects of team composition. Research limitations/implications: Further research is needed to investigate screening decision-making. The authors provide a research agenda based on our findings. Practical implications: The study helps screening committees enhance their decision-making process, by optimizing committee composition, and making better use of decision maker experience and information. Originality/value: Little is known about how decision makers exploit information and previous experience in dealing with the high levels of ambiguity, complexity and uncertainty in a TBS proposal screening setting. This is the first study to approach the problem from an information processing perspective.