Read the summary and the most important questions on Structural Ambidexterity in NPD processes: A Firm-Level Assessment of the Impact of Differentiated Structures on Innovation Performance

• 1 Introduction

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• Wherefore is new product development (NPD) seen as crucial?

  For the long-term survival and growth of the firm.

• What does the product innovativeness within a particular NPD project?

  Moderates the relationship between the effectiveness of the structure (i.e., formal versus cross-functional), and the performance of the NPD project. 

• What differentiates this study from previous studies?

  Previous studies have solely focused on the project level. As a result, we do not know whether firms tend to apply different kinds of structures for different kinds of NPD processes and how the application of particular structures in NPD processes influences firm-level innovation performance. In this study, therefore, we conduct a firm-level assessment of the impact of different kinds of structures (i.e., functional versus cross-functional) in different kinds of NPD processes (i.e., incremental versus radical) on different kinds of firm innovation performance (i.e., derivative versus breakthrough).

• 2 Theoretical background and hypotheses

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• What does the functional approach hold?

  Various specialized departments work independently

• What does the cross-functional approach hold?

  Specialists of different departments are brought together within a single team structure for a particular NPD project. 

• What are the benefits of cross-functional teams?

  1. Cross-functional project teams foster interdepartmental communication and cooperation, which in turn facilitate coordination. 
  2. It also facilitates access to a diverse pool of information, which increases the success-rate of innovations. 
  3. It as well speeds up the NPD process since cross-functional structures overlap development stages. 
     

• The degree of innovativeness can vary between

  1. incremental NPD processes
  2. radical NPD processes

• What is the objective of incremental R&D?

  To improve existing products through conducting exploitative activities such as optimization, standardization, and refinement. 

• What is the objective of radical R&D?

  To generate really new products through conducting explorative activities such as fundamental research, experimenting, and prototyping.

• What is emphasized over radical innovation projects when relying on resource dependence theory?

  Radical innovation projects are associated with high levels of external and internal uncertainty, triggering substantial task interdependence between the involved project members.