Organizing Cross-Functional New Product Development Projects

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Companies are looking for better ways to develop innovative products. In this regard, cross-functional teams (CFTs) are considered to be a key success factor. However, previous research indicates that the use of CFTs does not automatically lead to successful innovation. It appears that the employment of CFTs has to be implemented as systematically as well as other organizational activities. On the basis of a survey conducted with 133 project managers, Tobias Huth presents an empirical analysis of the organizational success drivers of new cross-functional product development projects. The investigated antecedents are distinguished by organic and mechanistic designs as well as boundary spanning activities. New territory is entered by applying a phase-specific perspective. It is shown that certain antecedents (e.g. participative decision-making, top management support) should be permanently employed, while others (e.g. steering committees, central budgets) should be managed dynamically. Teams are advised to adopt a dynamic blend of flexibility and discipline while constantly interacting with external sources inside the organization.