Is more always better? An exploration of the differential effects of functional integration on performance in new product development

The objective of this paper is to explore the relationship between performance in new product development (hereinafter NPD) and functional integration under different conditions of project uncertainty. Functional integration is conceived as a two-dimensional concept, encompassing a behavioural — collaboration — and a structural — interaction — dimension. This study is based on 92 questionnaires looking at NPD activities in more than 40 British and Dutch companies from various industrial sectors. The results suggest that the nature of the relationship between integration and performance is contingent upon the project stage and the degree of novelty in the new product. Integration in the initial stages of the project assumes a prominent role in the quality of the end product, whereas in later stages it is more associated with time to market than with costs and end product quality. Results further show that the dimension collaboration of integration may be more relevant under circumstances of high new product innovativeness than when minor variations are introduced in a new product. The paper ends with a discussion of the use of universal approaches to NPD management.

[1]  D. Dougherty.  Interpretive Barriers to Successful Product Innovation in Large Firms , 1992 .

[2]  Mark E. Parry,et al.  The R&D-marketing interface in Japanese high-technology firms , 1992 .

[3]  Ken Kamoche,et al.  Minimal Structures: From Jazz Improvisation to Product Innovation , 2001 .

[4]  D. Denison,et al.  From Chimneys to Cross-Functional Teams: Developing and Validating a Diagnostic Model , 1996 .

[5]  K. Eisenhardt,et al.  The Art of Continuous Change : Linking Complexity Theory and Time-Paced Evolution in Relentlessly Shifting Organizations , 1997 .

[6]  Jinhong Xie,et al.  The Impact of Cross‐Functional Joint Involvement Across Product Development Stages: An Exploratory Study , 1998 .

[7]  George M. Scott.  The new age of new product development: are we there yet? , 1998 .

[8]  Robert G. Cooper,et al.  Stage-gate systems: A new tool for managing new products , 1990 .

[9]  K. Eisenhardt,et al.  PRODUCT DEVELOPMENT: PAST RESEARCH, PRESENT FINDINGS, AND FUTURE DIRECTIONS , 1995 .

[10]  Jeffrey B. Schmidt,et al.  Antecedents and consequences of cross-functional cooperation: A comparison of R&D, manufacturing, and marketing perspectives , 1997 .

[11]  J. Pinto,et al.  Critical factors in project implementation: a comparison of construction and R&D projects , 1989 .

[12]  David Wilemon,et al.  The R&D-marketing interface in high-technology firms , 1985 .

[13]  Alan W. Pearson,et al.  A framework for managing communication at the R&D/Marketing interface , 1993 .

[14]  W. Souder.  Managing relations between R&D and marketing in new product development projects☆ , 1988 .

[15]  Kenneth B. Kahn.  Interdepartmental Integration: A Definition with Implications for Product Development Performance , 1996 .

[16]  Roger Calantone,et al.  Principles of New Product Management: Exploring the Beliefs of Product Practitioners , 1995 .

[17]  R. Verganti.  Leveraging on systemic learning to manage the early phases of product innovation projects , 1997 .

[18]  D. Wilemon,et al.  A Model for Studying R&D–Marketing Interface in the Product Innovation Process , 1986 .

[19]  Harry Boer,et al.  Balanced matrix structure and new product development process at Texas Instruments Materials and Controls Division , 1999 .

[20]  J. Pinto,et al.  Project team communication and cross-functional cooperation in new program development , 1990 .

[21]  J. Pinto,et al.  Antecedents and consequences of project team cross-functional cooperation , 1993 .

[22]  Oscar Hauptman,et al.  Managing integration and coordination in cross‐functional teams: an international study of Concurrent Engineering product development , 1999 .

[23]  J. Hauser,et al.  Integrating R&D and marketing: A review and analysis of the literature , 1996 .

[24]  C Petronella,et al.  New product development Systems; Operational Effectiveness and Strategic Flexibility , 1998 .

[25]  William E. Souder,et al.  INTEGRATING MARKETING AND R&D PROJECT PERSONNEL WITHIN INNOVATION PROJECTS: AN INFORMATION UNCERTAINTY MODEL* , 1992 .

[26]  Avan R. Jassawalla,et al.  An Examination of Collaboration in High‐Technology New Product Development Processes , 1998 .

[27]  Robert G. Cooper,et al.  The new product process: A decision guide for management , 1988 .

[28]  Steven C. Wheelwright,et al.  Managing New Product and Process Development , 1993 .

[29]  Jan Jorgensen,et al.  Some surprising things about collaboration—Knowing how people connect makes it work better , 1996 .

[30]  Thomas J. Allen,et al.  Communication networks in R & D Laboratories , 1970 .

[31]  D. Deschoolmeester,et al.  R&D-marketing integration mechanisms, communication flows, and innovation success , 1994 .

[32]  Steven C. Wheelwright,et al.  Managing New Product and Process Development: Text and Cases , 1992 .

[33]  P. Lawrence,et al.  Organization and environment , 1967 .

[34]  Rod Coombs,et al.  Toward the development of benchmarking tools for R&D project management , 1998 .