Full citation

Millson, M. R. & Wilemon, D. (2002). The Impact of Organizational Integration and Product Development Proficiency on Market Success. Industrial Marketing Management, 31(1), 1-23.

Format: Peer-reviewed article

Type: Research — Non-experimental

Experience level of reader: Advanced

Annotation: The study surveyed companies in the medical instruments, electrical equipment and heavy construction equipment industries about both successful and unsuccessful new product development projects. In general it was found that organizational integration (communication and cooperation) was significantly related to product market success. The study also takes a closer look at internal and external integration at different stages in the NPD process.

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

Primary Findings

Carrier: Invest in coaching, training, consulting and integrating to help inexperienced new product developers overcome technical, procedural and personal barriers.
Survey.

Models:

  • Encourage communication and coordination between internal NPD teams and functional departments to ensure the development and launch of a profitable new product.
    Survey. Internal organizational integration is significantly related to new product profits (r= 0.198; P = 0.045)
  • Continually integrate customers throughout the entire NPD process to achieve positive new product sales.
    Survey. r = 0.256; P = 0.0095

Tips:

  • Use any of the following tactics to achieve integration; progress review meetings, memos, informal networking, various forms of electronic communications, and rewards for milestones met.
    Survey.
    Occurrence of finding within the model: Stage , Stage , Stage , Stage , Stage , Stage
  • Give suppliers product requirements and ask them for suggestions regarding the implementation of the supplied material early on in development.
    Survey.
    Occurrence of finding within the model: Step 4.1

Secondary Findings

Tip: Perform detailed market studies and competitive strength analysis to avoid new product failure. (Cooper [1975])
Occurrence of finding within the model: Tip 2.2, Tip 2.3, Tip 4.1