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The Organisational Architecture

In: Performance Measurement of New Product Development Teams

Author

Listed:
  • Magdy G. Abdel-Kader

    (Brunel University)

  • Erin Yu-Ching Lin

    (PricewaterhouseCoopers)

Abstract

One of the basic elements for developing a breakthrough innovation is ‘the organisational architecture: the process, culture, structure, people, resources, technology, and incentives.’ (Wind and Mahajan, 1997: 3) The company’s organisational architecture encompasses the assignment of decision rights to NPD participants within the company, the system of rewarding and punishing new product project members, and the performance measurement system to evaluate the corporate executive officer (CEO); business units; and project teams. The importance of these systems for organisations has been recognised by many writers in economics and management (e.g., Brickley, Smith, and Zimmerman, 2004; Jensen, 1983; Jensen and Meckling, 1995; Milgrom and Roberts, 1992; Robey, 1991).

Suggested Citation

  • Magdy G. Abdel-Kader & Erin Yu-Ching Lin, 2009. "The Organisational Architecture," Palgrave Macmillan Books, in: Performance Measurement of New Product Development Teams, chapter 3, pages 42-72, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-58427-3_3
    DOI: 10.1057/9780230584273_3
    as

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