Behavioral dynamics in new product portfolio management: an experimental study

This study investigates how intertemporal framing affects product portfolio decisions in a strategic corporate context. Using a controlled online experiment with 400 self-identified managers, we simulate a new product portfolio selection task under three conditions: control, short-term framing, and long-term framing. Participants allocate investment across projects differing in cash flow timing and sustainability profiles. The framing manipulation is embedded via board-level communication emphasizing either short- or long-term key performance indicators (KPIs). Our design captures behavioral patterns such as status quo bias, loss aversion, and risk preferences using Mouse-lab tracking and post-task psychological surveys. This is the first phase of a two-part study; a follow-up experiment will compare professional versus personal decision-making under risk. The current findings aim to reveal how cognitive framing and strategic orientation shape resource allocation in innovation management. The results inform both theory and practice by highlighting the behavioral underpinnings of managerial trade-offs between short-term profitability and long-term sustainability.