This empirical study examines the influence of environmental uncertainty on industrial product innovation. Addresses a perceived shortcoming in the new product development literature and explores direct and moderating effects of environmental uncertainty on the development process, project organization, and on new product success. Finds that several external market and technology factors do impact new product success directly. Further, finds that several market and technological uncertainties moderate the relationship between development process, project organization, and new product success. Consequently, innovating companies benefit by adapting their development approaches to different environmental conditions and to varying degrees of uncertainty. The results of 82 product development projects indicate, among others, that under conditions of high market and technology unpredictability process compression may increase time efficiency and product profitability.
