Sherman, J. D., Berkowitz, D., & Souder, W. E. (2005). New Product Development Performance and the Interaction of Cross-Functional Integration and Knowledge Management. Journal of Product Innovation Management, 22(5), 339-411.

Format: Peer-reviewed article

Type: Research — Non-experimental

Experience level of reader: Advanced

Annotation: Interaction effects were tested between Research & Development/Marketing integration and knowledge management as the process of recording, retrieving, and reviewing information about past new product development projects. Results found significant amplification effects on dependent variables(product prototype development, product launch proficiency, technological core competency fit, and design change frequency).

Setting(s) to which the reported activities/findings are relevant: Large business, Small business (less than 500 employees)

Knowledge user(s) to whom the piece of literature may be relevant: Manufacturers, Researchers

Knowledge user level addressed by the literature: Organization

This article uses the Commercial Devices and Services version of the NtK Model

Method: Create and maintain high levels of integration between Marketing and Research & Development functions and product prototype development, product launch and cycle times will all have increased proficiency. Market forecast accuracy and technological core competency fit will also be improved with function integration. Be sure to implement integration at step 4.1.
Survey. A multiple regression analysis revealed significance between integration and: product prototype development proficiency (F=70.80); product launch proficiency (F=122.74); product development cycle time (F=13.84), market forecast accuracy (F=75.65); and technological core competency fit (F=39.64), all interactions significant at the p<.001 level.
Occurrence of finding within the model: Step 5.4, Step 4.1, Step 5.1, Step 8.1, Step 7.3, Step 6.4, Step 6.2

• Effectively recording information from a completed new product development project will positively impact the product prototype development and product launch of a future new product development project, when there is an effective integration of marketing and research and development during the new project.
  Survey. Significant interactions were found between functional integration and recording of past projects and product prototype development proficiency (F=10.69, p<.001), product launch proficiency (F=21.15, p<.001), and technological core competency fit (F=7.89, p<.01).
  Occurrence of finding within the model: Tip 4.1, Tip 9.3

• Develop well organized databases for more effective retrieval and review. Databases should include design specifications, engineering change orders, test data, market research findings and pertinent comments related to the project.
  Survey.

• Effectively retrieve information from past product development projects and maintain high levels of functional integration to achieve proficiency in product prototype development and product launch.
  Survey. Significance found for interaction between functional integration and retrieving for prototype development proficiency (F=6.74, p<.01) and product launch proficiency (F=4.18, p<.05)
  Occurrence of finding within the model: Stage 2, Stage 4, Stage 1

• Effectively reviewing information from past new product development projects while integrating marketing and research and development will significantly influence product launch proficiency, design change frequency and technological core competency fit.
  Survey. Significant interaction for product launch proficiency (F=4.49, p<.05), design change frequency (F=4.32, p<.05) and technological core competency fit (F=5.22, p<.05).
  Occurrence of finding within the model: Step 4.1, Step 2.3, Step 4.7, Step 2.2

• Effective, accurate and timely knowledge management which involves the recording, retrieving, and reviewing of detailed information on past product development projects will affect performance of new product development projects. (Lynn, Reily, and Akgun [2000]; Lynn, Simpson, and Souder [1997]; Lynn, Skov, and Abel [1999])
  Occurrence of finding within the model: Tip 2.2, Tip 9.3, Stage 1, KTA Step 2.F, KTA Step 1.F

• Creating high levels of cross functional integration between marketing and research and development will positively effect prototype development proficiency, R&D commercialization effectiveness, product launch proficiency, post launch product management performance, market forecast accuracy, product development cycle time, product development process performance, and overall project success. (Souder, Sherman, and Davies-Cooper [1998]; Kahn [1996]; Sherman, Souder, and Jenssen [2000])
  Occurrence of finding within the model: Tip 4.1

• Information from past product development projects needs to be classified, sorted and simplified in order to make it useful for current product development managers. (Adams, Day, and Dougherty [1998])
  Occurrence of finding within the model: Tip 9.3