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

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  • Leenders, M.A.A.M.
  • Wierenga, B.

Abstract

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.

Suggested Citation

  • Leenders, M.A.A.M. & Wierenga, B., 2002. "How The Impact Of Integration Of Marketing And R&D Differs Depending On A Firm?s Resources And Its Strategic Scope," ERIM Report Series Research in Management ERS-2002-68-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:218
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    Cited by:

    1. Becker, Markus C. & Lillemark, Morten, 2006. "Marketing/R&D integration in the pharmaceutical industry," Research Policy, Elsevier, vol. 35(1), pages 105-120, February.

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    More about this item

    Keywords

    marketing-R&D interface; new product performance; resources; strategic scope;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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