Exploring the Relationships between Product Development and Environmental Turbulence: The Case of Mobile TLC Services

Managing innovation in turbulent environments (e.g., in environments with extreme uncertainty and complexity in market needs and technological opportunities) is a major challenge. A recent stream of studies in the management literature has suggested that when facing turbulent environments, firms should deploy more flexible develop- ment processes. This paper approaches this issue by looking at the Italian mobile telecommunications (TLC) industry. Nine in-depth case studies were conducted in five different companies. Data analysis showed some important results. First of all envi- ronmental turbulence should be considered to be project specific rather than company or industry specific. Moreover, it can come from both shift in the market needs and in the technology. Nevertheless, it seems clear that having rapid changes is not enough to have environmental turbulence. If rapid changes can be somehow foreseen, there is no turbulence at all. Hence, when approaching projects in potentially turbulent environ- ments, managers should assess both rapidity and unpredictability of the environment. Finally, looking at the in-depth cases, the paper points out what of the main practices to increase flexibility that are described in literature are actually adopted by compa- nies. In case of turbulence (both in the market and/or in the technology) companies delay concept freezing point. Moreover, in the case of technological turbulence, they also leverage on rapid project iterations, whereas in case of market turbulence they more likely adopt early experiments involving customers, formal and cross-functional project teams, and flat organizational structures.