The Role of Information Technologies in Enhancing R&D-Marketing Integration: An Empirical Investigation

The effective integration of research and development (R&D) and marketing contributes to the development of successful new products. Barriers such as physical separation of R&D and marketing, goal incongruity, and cultural differences hamper the cross-functional cooperation. However, it may not be either possible or desirable to eliminate the cross-functional integration barriers in practice. Previous research findings suggest that information technology (IT) can be used to reduce the negative impact of the barriers. This paper examines the moderating role of communication technologies (ITc) and decision-aiding technologies (ITd) in improving the R&D–marketing integration in new product development. The empirical findings from analyzing data on 171 new product development projects suggest that both IT systems can be used to reduce the negative impact of physical separation, goal incongruity, and cultural differences on R&D–marketing integration. However, effectiveness of the two types of IT differs. While ITc appears to be more effective than ITd in overcoming the constraint of physical separation, ITd is more effective than ITc in reducing the negative impact of goal incongruity and cultural differences. ITc is found to have the strongest effect on reducing the negative relationship of physical separation and integration, a less strong effect on cultural differences, and a weak effect on goal incongruity. Conversely, ITd is found to have a strong effect on goal incongruity. These empirical findings provide guidelines for project managers using a specific IT to address a specific integration barrier. If the major barrier is physical separation, ITc is the best solution. On the other hand, if the major barrier is goal incongruity, ITd is the best solution. In addition, it is important for management to note that IT requires more than simply installing computer hardware and software. In addition to investing in those “hard” improvements, project managers should strive to create a supportive “soft” environment by consistently improving members' IT experiences and familiarity. In the process of the continuous development of IT, state-of-the-art technologies should be introduced in a timely manner and be made accessible to all team members. Finally, project managers should frequently observe their industry peers' IT usage to keep up with advances.