The Effectiveness of Different Mechanisms for Integrating Marketing and R&D

The integration of marketing and R&D is a major concern for companies that want to improve their new product performance (NPP). In order to integrate, companies are using mechanisms such as physical proximity, cross-functional teams, and job rotation. This study examines the relative effectiveness of these mechanisms by developing a model that distinguishes between indirect effects of mechanisms on NPP (i.e., through a higher level of integration) and direct effects. The model is tested with data collected from 148 pharmaceutical companies. By simultaneously studying a broad range of integrating mechanisms, we found that housing marketing and R&D closer to each other and using an influential cross-functional phase review board are highly effective mechanisms to increase integration. Using information and communication technology (ICT) more intensively, having equal remuneration and career opportunities for marketing and R&D and using more cross functional teams are also effective in producing more integration, although to a somewhat lesser extent. The effectiveness of personnel movement and informal social group events is rather low. Interestingly, ICT appears to be a very effective tool for enhancing NPP. ICT not only fosters integration, but in addition it has an independent direct positive effect on NPP, possibly through knowledge creation within marketing and R&D. We also found a direct effect on NPP of another mechanism: cross functional phase review boards. However, for this mechanism the direct effect is negative. So, notwithstanding its strong positive effect on integration, a price is paid in terms of NPP. This may be related to the amount of formalization and complexity accompanying this mechanism.marketing;interne organisatie;farmaceutische industrie;interfaces;productontwikkeling

How The Impact Of Integration Of Marketing And R&D Differs Depending On A Firm?s Resources And Its Strategic Scope

Increasing the integration of marketing and R&D is widely recognized as an approach to improve the new product performance (NPP) of companies. However, empirical evidence for the positive effect of integration on NPP, especially at the corporate level, is mixed. This study provides a comprehensive theoretical underpinning of the conditions that influence the benefits that can be obtained from more integration. A model of the effect of integration on NPP, in conjunction with a company?s resources and strategic scope, is developed and tested with data from a worldwide sample of companies in the pharmaceutical industry (n = 148). Our results show that the effect of integration is indeed dependent on the situation. In particular it depends on the company?s underlying resources (i.e., specialized knowledge and assets): integration multiplies the positive effect of resources on NPP. The strength of the multiplication effect is in turn dependent on strategic scope. It is strong if the strategic scope is narrow, i.e., for companies with selective products in a few market segments. Our results imply that, when trying to improve NPP, management should not invariably think of increasing integration. Instead, they should evaluate the company?s resource (dis)advantages, its strategic scope, and the level of integration. If the company scores low on resources, increasing integration should not be a high priority. Additionally, integration is most important for companies with a narrow strategic scope where the interdependency between marketing and R&D is relatively strong

Competitiveness of Family Businesses

The purpose of this study is to systematically examine the advantages and disadvantages of different types of family businesses. We distinguish four different types of family businesses based on their family and business orientation: (1) House of Business, (2) Family Money Machine, (3) Family Life Tradition, and (4) Hobby Salon. In our empirical research among family businesses (n=220), we find that all four different types co-exist. In addition, we find that differences in family and business orientation result in different advantages and disadvantages with respect to performance indicators such as motivation, conflict resolution and continuity. Finally, our results indicate that, if a family firm would move along the dimensions of the orientation landscape, due to internal motivations or external circumstances, it will experience improvements on one or several criteria, but it may also encounter new concerns. These changing profiles in strengths and weaknesses can be viewed as mobility barriers or mobility opportunities when moving from one group to another

The Effectiveness of Different Mechanisms for Integrating Marketing and R&D

The integration of marketing and R&D is a major concern for companies that want to improve their new product performance (NPP). In order to integrate, companies are using mechanisms such as physical proximity, cross-functional teams, and job rotation. This study examines the relative effectiveness of these mechanisms by developing a model that distinguishes between indirect effects of mechanisms on NPP (i.e., through a higher level of integration) and direct effects. The model is tested with data collected from 148 pharmaceutical companies. By simultaneously studying a broad range of integrating mechanisms, we found that housing marketing and R&D closer to each other and using an influential cross-functional phase review board are highly effective mechanisms to increase integration. Using information and communication technology (ICT) more intensively, having equal remuneration and career opportunities for marketing and R&D and using more cross functional teams are also effective in producing more integration, although to a somewhat lesser extent. The effectiveness of personnel movement and informal social group events is rather low. Interestingly, ICT appears to be a very effective tool for enhancing NPP. ICT not only fosters integration, but in addition it has an independent direct positive effect on NPP, possibly through knowledge creation within marketing and R&D. We also found a direct effect on NPP of another mechanism: cross functional phase review boards. However, for this mechanism the direct effect is negative. So, notwithstanding its strong positive effect on integration, a price is paid in terms of NPP. This may be related to the amount of formalization and complexity accompanying this mechanism

Selection system orientations as an explanation for the differences between dual leaders of the same organization in their perception of organizational performance

We investigate to what extent individual managers operating in a dual leadership structure have different perceptions of how well his/her organization is performing. Using selection system theory we develop hypotheses on the relationships between a leader’s selection system orientation and his/her perception of performance along multiple dimensions: market performance, expert performance and peer performance. The hypotheses are tested using dyadic data from 59 organizations in the performing arts led by two—hierarchically equivalent—managers. Our results show that dual leaders’ differences in terms of market orientation and expert orientation relate positively to perceived performance differences along the same dimensions. This relationship is not found with respect to peer selection orientation. Generally, the relationship between orientation differences and perceived performance differences is stronger if the process of interpreting signals to construct a perception of organizational performance leaves more room for equivocality and uncertainty

Using scent to lift customers' moods

Faced with tougher and tougher online competition, traditional retailers are scrambling to find ways to exploit the advantages of realworld sales that e-commerce vendors can’t easily duplicate, such as taste and feel – and smell. Strong scents brighten attitudes and open wallets, and a recent study shows that the right scent at the right intensity can increase sales by nearly a third