Managing Ambiguity in New Product Development Projects

Ambiguity, defined in this study as the existence of two or more interpretations of the same cue, is an essential component of ‘fuzziness’ in new product development (NPD) projects. In this paper, we present a model by which ambiguity in NPD projects can be classified and managed. The model has been developed grounded in case data from four NPD projects in companies making medical devices. Ambiguity is classified according to two axes: subjects of ambiguity and sources of ambiguity. Subjects of ambiguity include product, market, process and organizational resources. Sources of ambiguity include multiplicity, novelty, validity and reliability. Ambiguity can be managed by two means: reducing or sustaining it. If clarity is a main priority in the NPD project, reducing ambiguity is necessary and can be effectively achieved by applying the hypothetical‐deductive method. If novelty and flexibility are high project priorities, sustaining certain ambiguities can be useful. Managing ambiguity requires a constant harmonizing of the need for clarity and the need for novelty and flexibility.