Controlling new products: A contingency approach

Abstract

This article presents the findings from a large sample investigation into the way that SBU managers in large companies control different types of new products. The study also reports on the impact that different control choices have on two performance outcomes: new product output and new product success. The findings indicate that, consistent with the tenets of contingency theory, different new product strategies require different control approaches on the part of SBU managers and that an SBU manager's choice of controls matters in terms of performance. Most importantly, though, the findings underscore the balance and trade-offs that SBU managers may have to make in the course of pursuing different performance objectives.