Cross-Functional Integration and New Product Success: An Empirical Investigation of the Findings

Abstract

Although cross-functional integration is often considered an important element in a successful new product development program, a great deal of variance exists in extant literature regarding how integration is defined and implemented and how relevant studies are conducted. The authors attempt to bring clarity to a diverse set of 25 studies that investigate cross-functional integration by empirically analyzing 146 correlations between integration and aspects of new product success. The authors examine the impact of 12 potential moderators that affect the integration–success link using meta-analysis techniques. The findings indicate that though cross-functional integration may indeed have a direct impact on success, the combination of integration with other variables may be of greater importance. Furthermore, because most of the nine variables that significantly affect the integration–success relationship are either managerially controlled or industry specific, the findings imply that firms should design cross-functional structures to maximize their effectiveness. Other variables that affect the integration–success relationship reflect researchers’ methodological decisions, suggesting that care should be taken when designing and interpreting the results of such studies. The authors discuss the implications of these findings and directions for further research.

The Effects of a CEO’s Technical Background and Cross-functional Coordination on Technological Innovation Performance: The Mediating Role of Technological Innovation Orientation

“…Cross-functional coordination has been frequently recognized as a critical factor for successful technological innovation or new product development (Ayers, Dahlstrom, & Skinner, 1997;De Clercq et al, 2011;Song & Montoya-Weiss, 2001;Song & Parry, 1997;Song & Song, 2010;Stock et al, 2013;Suder, Sherman, & Davis-Cooper, 1998;Troy et al, 2008;Xie et al, 2003). Cross-functional coordination refers to the extent of interaction, communication, information sharing, and joint involvement across diverse organizational functions such as R&D, production, and marketing (Song & Montoya-Weiss, 2001;Troy et al, 2008).…”

“…Cross-functional coordination refers to the extent of interaction, communication, information sharing, and joint involvement across diverse organizational functions such as R&D, production, and marketing (Song & Montoya-Weiss, 2001;Troy et al, 2008). Cross-functional coordination represents an important characteristic of organic organizational structure which enables the firm to effectively cope with dynamic environments arising from factors such as frequent changes in customer needs and tastes.…”

“…Cross-functional coordination refers to the extent of interaction, communication, information sharing, and joint involvement across diverse organizational functions such as R&D, production, and marketing (Song & Montoya-Weiss, 2001;Troy et al, 2008). A large body of literature has demonstrated that cross-functional coordination positively influences new product success or technological innovation performance owing to the virtues it generates like increased sharing of market information, improved interaction and communication and high flexibility in organizational structure (Chen, Li, & Lin, 2013;De Clercq et al, 2011;Song & Montoya-Weiss, 2001;Song & Parry, 1997;Stock et al, 2013;Troy et al, 2008).…”

“…Cross-functional coordination refers to the extent of interaction, communication, information sharing, and joint involvement across diverse organizational functions such as R&D, production, and marketing (Song & Montoya-Weiss, 2001;Troy et al, 2008). A large body of literature has demonstrated that cross-functional coordination positively influences new product success or technological innovation performance owing to the virtues it generates like increased sharing of market information, improved interaction and communication and high flexibility in organizational structure (Chen, Li, & Lin, 2013;De Clercq et al, 2011;Song & Montoya-Weiss, 2001;Song & Parry, 1997;Stock et al, 2013;Troy et al, 2008). On the other hand, a substantial amount of research suggested that since cross-functional coordination generates some potential adverse effects such as interpersonal conflicts and low employee commitment, cross-functional alone may not be sufficient to lead to successful new product development or technological innovation (De Clercq et al, 2011;De Luca & Atuahene-Gima, 2007;Sethi, 2000aSethi, , 2000bTessarolo, 2007;Xie, Song, & Stringfellow, 2003).…”

Modifiers for Quality Assurance in Group Facilitation

“…Collaboration is critical to the ongoing success of many organizations in the knowledge economy (Leibold et al 2005), because many organizational tasks are now sufficiently complex that cross-functional teams with diverse expertise outperform conventional organizational forms based on functional homogeneity (Higgs et al 2005;Troy et al 2008) Such collaboration, however, can be challenging. Ambiguous goals, poor communication, inefficient group processes, conflicts of interest, and a host of other issues can limit group effectiveness (Levi 2007).…”