Managing trade-offs within and across decision domains: Continuity, change and new product performance

Systematic evidence documenting the outcomes of managing trade-offs within and across decision domains is lacking and little is known about the mix of actual decisions through which firms balance continuity and change. We leverage behavioral tracking data regarding the global music industry to tease apart the effect of continuity- and change-related decisions on the success of new products. Different strategic profiles are evaluated across two domains theoretically modeled to articulate trade-offs in the decision making space: product attributes and members of the production team. Results show that balancing continuity and change within and across decision domains increases new product success.