Effective decision-making model for hi-tech new product development

In order to identify the effective decision-making factors at the individual NPD project manager level, a new effective decision-making model has been established by introducing the concept of decision-making effectiveness, analyzing the role of expertise, and identifying the major role of expertise and insight with respect to the interfaces between a new product, an organization, customers, technologies and regulations, for the study of the effective decision-making facilitators and inhibitors for a NPD project. The analysis of the unique task conditions for individual decision-makers shows that perceived complexity, uncertainty and time pressure have their negative effect on the effective decision-making process. It is concluded that the flexible, balanced and appropriate use of rational analysis, common sense and intuition is a key effective decision-making factor, and the psychologically ‘active attitude’ of a manager is also an important factor for successful dealing with the difficult task conditions.