Factors influencing a no-go decision for ecologically sustainable innovations

Abstract

The goal of this study is to get a better understanding of the factors that influence a no-go decision in the NPD process of ecologically sustainable innovations. To this end, this research focuses on medium-sized organizations and larger ones in the manufacturing sector and makes use of a multiple-case study design. Five innovation projects in five different organizations were examined and a total of nine interviews were conducted. The findings of this study indicate that strategic fit, technical feasibility, customer acceptance, market opportunity, financial performance influence the no-go decision for ecologically sustainable NPD innovations. The results suggest that low strategic fit, low technical feasibility, low customer acceptance and low financial performance lead to a no-go decision for ecologically sustainable innovations. The results indicate that high market opportunity does not influence a no-go decision for ecologically sustainable innovations. A surprising factor that also contributes to the no-go decision is the existence of a process protocol within an organization. The presence of a process protocol with predefined criteria leads to a longer continuation of ecologically sustainable innovations. The results of this study not only contribute to the existing literature on innovation by examining which factors influence a no-go decision in the NPD process of ecologically sustainable innovations but also have important practical implications. Managers might be able to make better go/no-go decisions in the NPD process when taking the findings of this study in mind. Furthermore, managers might also be better able to allocate resources to high potential projects instead of wasting them on low potential, unsuccessful projects.