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The impact of design thinking and artificial intelligence capabilities on performance: The role of new product development decision-making agility

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  • Kyriakopoulos, Nikolaos
  • Kim, Euiyoung
  • Hultink, Erik Jan
  • Santema, Sicco

Abstract

Design thinking and artificial intelligence (AI) capabilities are gaining prominence in today’s dynamic markets. However, research gaps remain regarding their influence on the outcomes of new product development (NPD), such as decision-making agility, and the structural conditions facilitating or impeding their effective implementation. Considering design thinking as a dynamic capability and AI capabilities as technology-driven innovation enablers, this study examines their impact on NPD performance via NPD decision-making agility. An empirical investigation using data collected from 230 U.S. firms shows that design thinking and AI capabilities positively influence agility, which in turn drives NPD performance. This study also uncovers that the moderating role of organizational formalization attenuates the impact of design thinking on NPD decision-making agility but strengthens the impact of AI capabilities on NPD decision-making agility. These findings provide NPD managers with insights into using these capabilities to enhance agility and improve NPD performance in the organizational context.

Suggested Citation

  • Kyriakopoulos, Nikolaos & Kim, Euiyoung & Hultink, Erik Jan & Santema, Sicco, 2025. "The impact of design thinking and artificial intelligence capabilities on performance: The role of new product development decision-making agility," Journal of Business Research, Elsevier, vol. 200(C).
    • Handle: RePEc:eee:jbrese:v:200:y:2025:i:c:s0148296325004564
    DOI: 10.1016/j.jbusres.2025.115633
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