Can operational centralization/decentralization accelerate new product development ? An empirical evidence from China

With the advent of time-based competition, the speed with which new products can be developed and introduced into a market is an important managerial aspect of time-based strategy. The relationship between the allocation of decision-making power within organization and new product development speed is investigated empirically using Chinese data. The results of correlation analysis show that horizontal integration is the key factor to influence new product development speed. Meanwhile, the results of regression analysis indicate that whether operational decentralization can accelerate new product development or not, rests with the degree of horizontal integration and the type of decision-making power. With the leverage effect from centralization and the agility from decentralization to gain competitive advantage, this research can provide a direct reference for managers to configure decision-making power in workplace effectively and neatly.