The role of the Network Lead Company in integrating the NPD process across strategic partners

Author： Badir Yuosre F. Buchel Bettina Tucci Christopher L.

ISSN： 1368-275X

Source： International Journal of Entrepreneurship and Innovation Management, Vol.5, Iss.1-2, 2005-02, pp. : 117-137

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Abstract

In today's network world, advancement in new product development (NPD) is being driven by different types of networks, joint ventures, alliances, outsourcing and mergers. Managing the integration of an NPD process in this increased organisational complexity requires a sophisticated organisation design to facilitate and support the coordination of activities and the flow of information across the networks. This paper investigates the impact of the organisational design of the "network lead company" (the main company in the network) on the integration of the NPD process across a network of strategic partners, and the subsequent effects on project performance. We adopt the project level of analysis and focus on NPD project organisation. Our conceptual model suggests that four organisational attributes hierarchical levels, centralisation, formalisation and team empowerment have an effect on the integration elements (communication and coordination), which ultimately improve project performance.