This research studies the effect of key strategy and governance choices on chances of success of innovation in software products, and we test our hypotheses based on data from more than 150 professionals in the United States who are responsible for new software product development. We find the right balance of onshore and offshore team members to be more salient in influencing innovation success than decisions related to insourced versus outsourced development. Our findings suggest a greater likelihood of innovation when business executives make technical decisions, particularly if firms compete by selling high price margin software products or services
