Organizations are constantly seeking ways to reinvent themselves through innovation. The process of selecting ideas in the early stages of innovation has a significant impact on the probability for success of new products or services. This paper investigates the critical factors organizations consider in the selection process.
Innovation management in organizations should be viewed in the context of systems thinking. Managers must take a holistic approach to selecting the ideas best suited for their organization. Decision-making is a major component of innovation management, especially in the early stages of innovation. Organizations must choose which innovation ideas warrant allocation of scarce resources. The selection of some ideas over others will impact the probability for success of new products or services. Extant literature provides insight into the factors managers should consider during idea selection in the front-end phases of innovation. The academic literature studied for this research question review article contained both quantitative and qualitative research. Additionally, a number of related theories impact innovation idea selection including: portfolio theory, contingency theory, systems theory and organization ambidexterity theory. This article provides a consolidated reference for organizations developing innovation decision-making frameworks. One things seems clear from the research–a reductionist approach towards innovation management will prove inadequate. In other words, there is no “golden ticket” or single answer to the innovation idea selection process. Managers must consider the key factors from literature and then determine the best fit application to their current business environment and constraints.
Author: Troy Montgomery
Cite as: Montgomery, T. (2017). What critical factors do companies consider when selecting innovation ideas? Muma Business Review, 1(7). 69-80. https://doi.org/10.28945/3843